H. R. 2—94 
in subsection (b)(1) or benchmark equivalent coverage 
described in subsection (b)(2); 
‘‘(ii) preventing a State from offering all or any 
of the items and services required by subparagraph 
(A)(ii) through an issuer of benchmark coverage 
described in subsection (b)(1) or benchmark equivalent 
coverage described in subsection (b)(2); or 
‘‘(iii) affecting a child’s entitlement to care and 
services described in subsections (a)(4)(B) and (r) of 
section 1905 and provided in accordance with section 
1902(a)(43) whether provided through benchmark cov-
erage, benchmark equivalent coverage, or otherwise.’’. 
(b) CORRECTION OF REFERENCE TO CHILDREN IN FOSTER CARE 
RECEIVING CHILD WELFARE SERVICES.—Section 1937(a)(2)(B)(viii) 
(42 U.S.C. 1396u–7(a)(2)(B)(viii)), as inserted by section 6044(a) 
of the Deficit Reduction Act of 2005, is amended by striking ‘‘aid 
or assistance is made available under part B of title IV to children 
in foster care and individuals’’ and inserting ‘‘child welfare services 
are made available under part B of title IV on the basis of being 
a child in foster care or’’. 
(c) TRANSPARENCY.—Section 1937 (42 U.S.C. 1396u–7), as 
inserted by section 6044(a) of the Deficit Reduction Act of 2005, 
is amended by adding at the end the following: 
‘‘(c) PUBLICATION OF PROVISIONS AFFECTED.—With respect to 
a State plan amendment to provide benchmark benefits in accord-
ance with subsections (a) and (b) that is approved by the Secretary, 
the Secretary shall publish on the Internet website of the Centers 
for Medicare & Medicaid Services, a list of the provisions of this 
title that the Secretary has determined do not apply in order 
to enable the State to carry out the plan amendment and the 
reason for each such determination on the date such approval 
is made, and shall publish such list in the Federal Register and 
not later than 30 days after such date of approval.’’. 
(d) EFFECTIVE DATE.—The amendments made by subsections 
(a), (b), and (c) of this section shall take effect as if included 
in the amendment made by section 6044(a) of the Deficit Reduction 
Act of 2005. 
SEC. 612. REFERENCES TO TITLE XXI. 
Section 704 of the Medicare, Medicaid, and SCHIP Balanced 
Budget Refinement Act of 1999, as enacted into law by division 
B of Public Law 106–113 (113 Stat. 1501A–402) is repealed. 
SEC. 613. PROHIBITING INITIATION OF NEW HEALTH OPPORTUNITY 
ACCOUNT DEMONSTRATION PROGRAMS. 
After the date of the enactment of this Act, the Secretary 
of Health and Human Services may not approve any new dem-
onstration programs under section 1938 of the Social Security Act 
(42 U.S.C. 1396u–8). 
SEC. 614. ADJUSTMENT IN COMPUTATION OF MEDICAID FMAP TO DIS-
REGARD AN EXTRAORDINARY EMPLOYER PENSION CON-
TRIBUTION. 
(a) IN GENERAL.—Only for purposes of computing the FMAP 
(as defined in subsection (e)) for a State for a fiscal year (beginning 
with fiscal year 2006) and applying the FMAP under title XIX 
of the Social Security Act, any significantly disproportionate
H. R. 2—95 
employer pension or insurance fund contribution described in sub-
section (b) shall be disregarded in computing the per capita income 
of such State, but shall not be disregarded in computing the per 
capita income for the continental United States (and Alaska) and 
Hawaii. 
(b) SIGNIFICANTLY DISPROPORTIONATE EMPLOYER PENSION AND 
INSURANCE FUND CONTRIBUTION.— 
(1) IN GENERAL.—For purposes of this section, a signifi-
cantly disproportionate employer pension and insurance fund 
contribution described in this subsection with respect to a State 
is any identifiable employer contribution towards pension or 
other employee insurance funds that is estimated to accrue 
to residents of such State for a calendar year (beginning with 
calendar year 2003) if the increase in the amount so estimated 
exceeds 25 percent of the total increase in personal income 
in that State for the year involved. 
(2) DATA
TO
BE
USED.—For estimating and adjustment 
a FMAP already calculated as of the date of the enactment 
of this Act for a State with a significantly disproportionate 
employer pension and insurance fund contribution, the Sec-
retary shall use the personal income data set originally used 
in calculating such FMAP. 
(3) SPECIAL ADJUSTMENT FOR NEGATIVE GROWTH.—If in any 
calendar year the total personal income growth in a State 
is negative, an employer pension and insurance fund contribu-
tion for the purposes of calculating the State’s FMAP for a 
calendar year shall not exceed 125 percent of the amount 
of such contribution for the previous calendar year for the 
State. 
(c) HOLD HARMLESS.—No State shall have its FMAP for a 
fiscal year reduced as a result of the application of this section. 
(d) REPORT.—Not later than May 15, 2009, the Secretary shall 
submit to the Congress a report on the problems presented by 
the current treatment of pension and insurance fund contributions 
in the use of Bureau of Economic Affairs calculations for the FMAP 
and for Medicaid and on possible alternative methodologies to miti-
gate such problems. 
(e) FMAP DEFINED.—For purposes of this section, the term 
‘‘FMAP’’ means the Federal medical assistance percentage, as 
defined in section 1905(b) of the Social Security Act (42 U.S.C. 
1396(d)). 
SEC. 615. CLARIFICATION TREATMENT OF REGIONAL MEDICAL 
CENTER. 
(a) IN GENERAL.—Nothing in section 1903(w) of the Social 
Security Act (42 U.S.C. 1396b(w)) shall be construed by the Sec-
retary of Health and Human Services as prohibiting a State’s use 
of funds as the non-Federal share of expenditures under title XIX 
of such Act where such funds are transferred from or certified 
by a publicly-owned regional medical center located in another 
State and described in subsection (b), so long as the Secretary 
determines that such use of funds is proper and in the interest 
of the program under title XIX. 
(b) CENTER DESCRIBED.—A center described in this subsection 
is a publicly-owned regional medical center that— 
(1) provides level 1 trauma and burn care services; 
(2) provides level 3 neonatal care services;
H. R. 2—96 
(3) is obligated to serve all patients, regardless of ability 
to pay; 
(4) is located within a Standard Metropolitan Statistical 
Area (SMSA) that includes at least 3 States; 
(5) provides services as a tertiary care provider for patients 
residing within a 125-mile radius; and 
(6) meets the criteria for a disproportionate share hospital 
under section 1923 of such Act (42 U.S.C. 1396r–4) in at least 
one State other than the State in which the center is located. 
SEC. 616. EXTENSION OF MEDICAID DSH ALLOTMENTS FOR TEN-
NESSEE AND HAWAII. 
Section 1923(f)(6) (42 U.S.C. 1396r–4(f)(6)), as amended by 
section 202 of the Medicare Improvements for Patients and Pro-
viders Act of 2008 (Public Law 110–275) is amended— 
(1) in the paragraph heading, by striking ‘‘2009 AND THE 
FIRST CALENDAR QUARTER OF FISCAL YEAR 2010’’ and inserting 
‘‘2011 AND THE FIRST CALENDAR QUARTER OF FISCAL YEAR 2012’’; 
(2) in subparagraph (A)— 
(A) in clause (i)— 
(i) in the second sentence— 
(I) by striking ‘‘and 2009’’ and inserting ‘‘, 
2009, 2010, and 2011’’; and 
(II) by striking ‘‘such portion of’’; and 
(ii) in the third sentence, by striking ‘‘2010 for 
the period ending on December 31, 2009’’ and inserting 
‘‘2012 for the period ending on December 31, 2011’’; 
(B) in clause (ii), by striking ‘‘or for a period in fiscal 
year 2010’’ and inserting ‘‘2010, 2011, or for period in 
fiscal year 2012’’; and 
(C) in clause (iv)— 
(i) in the clause heading, by striking ‘‘2009 AND 
THE FIRST CALENDAR QUARTER OF FISCAL YEAR 2010’’ 
and inserting ‘‘2011 AND THE FIRST CALENDAR QUARTER 
OF FISCAL YEAR 2012’’; and 
(ii) in each of subclauses (I) and (II), by striking 
‘‘ or for a period in fiscal year 2010’’ and inserting 
‘‘2010, 2011, or for a period in fiscal year 2012’’; and 
(3) in subparagraph (B)— 
(A) in clause (i)— 
(i) in the first sentence, by striking ‘‘2009’’ and 
inserting ‘‘2011’’; and 
(ii) in the second sentence, by striking ‘‘2010 for 
the period ending on December 31, 2009’’ and inserting 
‘‘2012 for the period ending on December 31, 2011’’. 
SEC. 617. GAO REPORT ON MEDICAID MANAGED CARE PAYMENT 
RATES. 
Not later than 18 months after the date of the enactment 
of this Act, the Comptroller General of the United States shall 
submit a report to the Committee on Finance of the Senate and 
the Committee on Energy and Commerce of the House of Represent-
atives analyzing the extent to which State payment rates for med-
icaid managed care organizations under Medicaid are actuarially 
sound.
H. R. 2—97 
Subtitle C—Other Provisions 
SEC. 621. OUTREACH REGARDING HEALTH INSURANCE OPTIONS 
AVAILABLE TO CHILDREN. 
(a) DEFINITIONS.—In this section— 
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ means 
the Small Business Administration and the Administrator 
thereof, respectively; 
(2) the term ‘‘certified development company’’ means a 
development company participating in the program under title 
V of the Small Business Investment Act of 1958 (15 U.S.C. 
695 et seq.); 
(3) the term ‘‘Medicaid program’’ means the program estab-
lished under title XIX of the Social Security Act (42 U.S.C. 
1396 et seq.); 
(4) the term ‘‘Service Corps of Retired Executives’’ means 
the Service Corps of Retired Executives authorized by section 
8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)); 
(5) the term ‘‘small business concern’’ has the meaning 
given that term in section 3 of the Small Business Act (15 
U.S.C. 632); 
(6) the term ‘‘small business development center’’ means 
a small business development center described in section 21 
of the Small Business Act (15 U.S.C. 648); 
(7) the term ‘‘State’’ has the meaning given that term 
for purposes of title XXI of the Social Security Act (42 U.S.C. 
1397aa et seq.); 
(8) the term ‘‘State Children’s Health Insurance Program’’ 
means the State Children’s Health Insurance Program estab-
lished under title XXI of the Social Security Act (42 U.S.C. 
1397aa et seq.); 
(9) the term ‘‘task force’’ means the task force established 
under subsection (b)(1); and 
(10) the term ‘‘women’s business center’’ means a women’s 
business center described in section 29 of the Small Business 
Act (15 U.S.C. 656). 
(b) ESTABLISHMENT OF TASK FORCE.— 
(1) ESTABLISHMENT.—There is established a task force to 
conduct a nationwide campaign of education and outreach for 
small business concerns regarding the availability of coverage 
for children through private insurance options, the Medicaid 
program, and the State Children’s Health Insurance Program. 
(2) MEMBERSHIP.—The task force shall consist of the 
Administrator, the Secretary of Health and Human Services, 
the Secretary of Labor, and the Secretary of the Treasury. 
(3) RESPONSIBILITIES.—The campaign conducted under this 
subsection shall include— 
(A) efforts to educate the owners of small business 
concerns about the value of health coverage for children; 
(B) information regarding options available to the 
owners and employees of small business concerns to make 
insurance more affordable, including Federal and State 
tax deductions and credits for health care-related expenses 
and health insurance expenses and Federal tax exclusion 
for health insurance options available under employer-
H. R. 2—98 
sponsored cafeteria plans under section 125 of the Internal 
Revenue Code of 1986; 
(C) efforts to educate the owners of small business 
concerns about assistance available through public pro-
grams; and 
(D) efforts to educate the owners and employees of 
small business concerns regarding the availability of the 
hotline operated as part of the Insure Kids Now program 
of the Department of Health and Human Services. 
(4) IMPLEMENTATION.—In carrying out this subsection, the 
task force may— 
(A) use any business partner of the Administration, 
including— 
(i) a small business development center; 
(ii) a certified development company; 
(iii) a women’s business center; and 
(iv) the Service Corps of Retired Executives; 
(B) enter into— 
(i) a memorandum of understanding with a 
chamber of commerce; and 
(ii) a partnership with any appropriate small busi-
ness concern or health advocacy group; and 
(C) designate outreach programs at regional offices 
of the Department of Health and Human Services to work 
with district offices of the Administration. 
(5) WEBSITE.—The Administrator shall ensure that links 
to information on the eligibility and enrollment requirements 
for the Medicaid program and State Children’s Health Insur-
ance Program of each State are prominently displayed on the 
website of the Administration. 
(6) REPORT.— 
(A) IN
GENERAL.—Not later than 2 years after the 
date of enactment of this Act, and every 2 years thereafter, 
the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives 
a report on the status of the nationwide campaign con-
ducted under paragraph (1). 
(B) CONTENTS.—Each report submitted under subpara-
graph (A) shall include a status update on all efforts made 
to educate owners and employees of small business con-
cerns on options for providing health insurance for children 
through public and private alternatives. 
SEC. 622. SENSE OF THE SENATE REGARDING ACCESS TO AFFORDABLE 
AND MEANINGFUL HEALTH INSURANCE COVERAGE. 
(a) FINDINGS.—The Senate finds the following: 
(1) There are approximately 45 million Americans currently 
without health insurance. 
(2) More than half of uninsured workers are employed 
by businesses with less than 25 employees or are self-employed. 
(3) Health insurance premiums continue to rise at more 
than twice the rate of inflation for all consumer goods. 
(4) Individuals in the small group and individual health 
insurance markets usually pay more for similar coverage than 
those in the large group market.
H. R. 2—100 
(f) PIPE TOBACCO.—Section 5701(f) of such Code is amended 
by striking ‘‘$1.0969 cents (95.67 cents on pipe tobacco removed 
during 2000 or 2001)’’ and inserting ‘‘$2.8311 cents’’. 
(g) ROLL-YOUR-OWN TOBACCO.—Section 5701(g) of such Code 
is amended by striking ‘‘$1.0969 cents (95.67 cents on roll-your- 
own tobacco removed during 2000 or 2001)’’ and inserting ‘‘$24.78’’. 
(h) FLOOR STOCKS TAXES.— 
(1) IMPOSITION OF TAX.—On tobacco products (other than 
cigars described in section 5701(a)(2) of the Internal Revenue 
Code of 1986) and cigarette papers and tubes manufactured 
in or imported into the United States which are removed before 
April 1, 2009, and held on such date for sale by any person, 
there is hereby imposed a tax in an amount equal to the 
excess of— 
(A) the tax which would be imposed under section 
5701 of such Code on the article if the article had been 
removed on such date, over 
(B) the prior tax (if any) imposed under section 5701 
of such Code on such article. 
(2) CREDIT AGAINST TAX.—Each person shall be allowed 
as a credit against the taxes imposed by paragraph (1) an 
amount equal to $500. Such credit shall not exceed the amount 
of taxes imposed by paragraph (1) on April 1, 2009, for which 
such person is liable. 
(3) LIABILITY FOR TAX AND METHOD OF PAYMENT.— 
(A) LIABILITY FOR TAX.—A person holding tobacco prod-
ucts, cigarette papers, or cigarette tubes on April 1, 2009, 
to which any tax imposed by paragraph (1) applies shall 
be liable for such tax. 
(B) METHOD OF PAYMENT.—The tax imposed by para-
graph (1) shall be paid in such manner as the Secretary 
shall prescribe by regulations. 
(C) TIME FOR PAYMENT.—The tax imposed by para-
graph (1) shall be paid on or before August 1, 2009. 
(4) ARTICLES IN FOREIGN TRADE ZONES.—Notwithstanding 
the Act of June 18, 1934 (commonly known as the Foreign 
Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any 
other provision of law, any article which is located in a foreign 
trade zone on April 1, 2009, shall be subject to the tax imposed 
by paragraph (1) if— 
(A) internal revenue taxes have been determined, or 
customs duties liquidated, with respect to such article 
before such date pursuant to a request made under the 
1st proviso of section 3(a) of such Act, or 
(B) such article is held on such date under the super-
vision of an officer of the United States Customs and Border 
Protection of the Department of Homeland Security pursu-
ant to the 2d proviso of such section 3(a). 
(5) DEFINITIONS.—For purposes of this subsection— 
(A) IN GENERAL.—Any term used in this subsection 
which is also used in section 5702 of the Internal Revenue 
Code of 1986 shall have the same meaning as such term 
has in such section. 
(B) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of the Treasury or the Secretary’s delegate.
H. R. 2—101 
(6) CONTROLLED GROUPS.—Rules similar to the rules of 
section 5061(e)(3) of such Code shall apply for purposes of 
this subsection. 
(7) OTHER
LAWS
APPLICABLE.—All provisions of law, 
including penalties, applicable with respect to the taxes imposed 
by section 5701 of such Code shall, insofar as applicable and 
not inconsistent with the provisions of this subsection, apply 
to the floor stocks taxes imposed by paragraph (1), to the 
same extent as if such taxes were imposed by such section 
5701. The Secretary may treat any person who bore the ulti-
mate burden of the tax imposed by paragraph (1) as the person 
to whom a credit or refund under such provisions may be 
allowed or made. 
(i) EFFECTIVE DATE.—The amendments made by this section 
shall apply to articles removed (as defined in section 5702(j) of 
the Internal Revenue Code of 1986) after March 31, 2009. 
SEC. 702. ADMINISTRATIVE IMPROVEMENTS. 
(a) PERMIT, INVENTORIES, REPORTS, AND RECORDS REQUIRE-
MENTS
FOR
MANUFACTURERS
AND
IMPORTERS
OF
PROCESSED 
TOBACCO.— 
(1) PERMIT.— 
(A) APPLICATION.—Section 5712 of the Internal Rev-
enue Code of 1986 is amended by inserting ‘‘or processed 
tobacco’’ after ‘‘tobacco products’’. 
(B) ISSUANCE.—Section 5713(a) of such Code is 
amended by inserting ‘‘or processed tobacco’’ after ‘‘tobacco 
products’’. 
(2) INVENTORIES, REPORTS, AND PACKAGES.— 
(A) INVENTORIES.—Section 5721 of such Code is 
amended by inserting ‘‘, processed tobacco,’’ after ‘‘tobacco 
products’’. 
(B) REPORTS.—Section 5722 of such Code is amended 
by inserting ‘‘, processed tobacco,’’ after ‘‘tobacco products’’. 
(C) PACKAGES, MARKS, LABELS, AND NOTICES.—Section 
5723 of such Code is amended by inserting ‘‘, processed 
tobacco,’’ after ‘‘tobacco products’’ each place it appears. 
(3) RECORDS.—Section 5741 of such Code is amended by 
inserting ‘‘, processed tobacco,’’ after ‘‘tobacco products’’. 
(4) MANUFACTURER OF PROCESSED TOBACCO.—Section 5702 
of such Code is amended by adding at the end the following 
new subsection: 
‘‘(p) MANUFACTURER OF PROCESSED TOBACCO.— 
‘‘(1) IN
GENERAL.—The term ‘manufacturer of processed 
tobacco’ means any person who processes any tobacco other 
than tobacco products. 
‘‘(2) PROCESSED TOBACCO.—The processing of tobacco shall 
not include the farming or growing of tobacco or the handling 
of tobacco solely for sale, shipment, or delivery to a manufac-
turer of tobacco products or processed tobacco.’’. 
(5) CONFORMING AMENDMENTS.— 
(A) Section 5702(h) of such Code is amended by striking 
‘‘tobacco products and cigarette papers and tubes’’ and 
inserting ‘‘tobacco products or cigarette papers or tubes 
or any processed tobacco’’.
H. R. 2—102 
(B) Sections 5702(j) and 5702(k) of such Code are each 
amended by inserting ‘‘, or any processed tobacco,’’ after 
‘‘tobacco products or cigarette papers or tubes’’. 
(6) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on April 1, 2009. 
(b) BASIS FOR DENIAL, SUSPENSION, OR REVOCATION OF PER-
MITS.— 
(1) DENIAL.—Paragraph (3) of section 5712 of such Code 
is amended to read as follows: 
‘‘(3) such person (including, in the case of a corporation, 
any officer, director, or principal stockholder and, in the case 
of a partnership, a partner)— 
‘‘(A) is, by reason of his business experience, financial 
standing, or trade connections or by reason of previous 
or current legal proceedings involving a felony violation 
of any other provision of Federal criminal law relating 
to tobacco products, processed tobacco, cigarette paper, or 
cigarette tubes, not likely to maintain operations in compli-
ance with this chapter, 
‘‘(B) has been convicted of a felony violation of any 
provision of Federal or State criminal law relating to 
tobacco products, processed tobacco, cigarette paper, or 
cigarette tubes, or 
‘‘(C) has failed to disclose any material information 
required or made any material false statement in the 
application therefor.’’. 
(2) SUSPENSION OR REVOCATION.—Subsection (b) of section 
5713 of such Code is amended to read as follows: 
‘‘(b) SUSPENSION OR REVOCATION.— 
‘‘(1) SHOW CAUSE HEARING.—If the Secretary has reason 
to believe that any person holding a permit— 
‘‘(A) has not in good faith complied with this chapter, 
or with any other provision of this title involving intent 
to defraud, 
‘‘(B) has violated the conditions of such permit, 
‘‘(C) has failed to disclose any material information 
required or made any material false statement in the 
application for such permit, 
‘‘(D) has failed to maintain his premises in such 
manner as to protect the revenue, 
‘‘(E) is, by reason of previous or current legal pro-
ceedings involving a felony violation of any other provision 
of Federal criminal law relating to tobacco products, proc-
essed tobacco, cigarette paper, or cigarette tubes, not likely 
to maintain operations in compliance with this chapter, 
or 
‘‘(F) has been convicted of a felony violation of any 
provision of Federal or State criminal law relating to 
tobacco products, processed tobacco, cigarette paper, or 
cigarette tubes, 
the Secretary shall issue an order, stating the facts charged, 
citing such person to show cause why his permit should not 
be suspended or revoked. 
‘‘(2) ACTION FOLLOWING HEARING.—If, after hearing, the 
Secretary finds that such person has not shown cause why 
his permit should not be suspended or revoked, such permit
H. R. 2—103 
shall be suspended for such period as the Secretary deems 
proper or shall be revoked.’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on the date of the enactment of this 
Act. 
(c) APPLICATION
OF INTERNAL REVENUE CODE STATUTE
OF 
LIMITATIONS FOR ALCOHOL AND TOBACCO EXCISE TAXES.— 
(1) IN GENERAL.—Section 514(a) of the Tariff Act of 1930 
(19 U.S.C. 1514(a)) is amended by striking ‘‘and section 520 
(relating to refunds)’’ and inserting ‘‘section 520 (relating to 
refunds), and section 6501 of the Internal Revenue Code of 
1986 (but only with respect to taxes imposed under chapters 
51 and 52 of such Code)’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to articles imported after the date of the 
enactment of this Act. 
(d) EXPANSION OF DEFINITION OF ROLL-YOUR-OWN TOBACCO.— 
(1) IN GENERAL.—Section 5702(o) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘or cigars, or for use 
as wrappers thereof’’ before the period at the end. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to articles removed (as defined in section 
5702(j) of the Internal Revenue Code of 1986) after March 
31, 2009. 
(e) TIME OF TAX FOR UNLAWFULLY MANUFACTURED TOBACCO 
PRODUCTS.— 
(1) IN
GENERAL.—Section 5703(b)(2) of such Code is 
amended by adding at the end the following new subparagraph: 
‘‘(F) SPECIAL RULE FOR UNLAWFULLY MANUFACTURED 
TOBACCO PRODUCTS.—In the case of any tobacco products, 
cigarette paper, or cigarette tubes manufactured in the 
United States at any place other than the premises of 
a manufacturer of tobacco products, cigarette paper, or 
cigarette tubes that has filed the bond and obtained the 
permit required under this chapter, tax shall be due and 
payable immediately upon manufacture.’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall take effect on the date of the enactment of this 
Act. 
(f) DISCLOSURE.— 
(1) IN GENERAL.—Paragraph (1) of section 6103(o) of such 
Code is amended by designating the text as subparagraph 
(A), moving such text 2 ems to the right, striking ‘‘Returns’’ 
and inserting ‘‘(A)
IN
GENERAL.—Returns’’, and by inserting 
after subparagraph (A) (as so redesignated) the following new 
subparagraph: 
‘‘(B) USE
IN
CERTAIN
PROCEEDINGS.—Returns and 
return information disclosed to a Federal agency under 
subparagraph (A) may be used in an action or proceeding 
(or in preparation for such action or proceeding) brought 
under section 625 of the American Jobs Creation Act of 
2004 for the collection of any unpaid assessment or penalty 
arising under such Act.’’. 
(2) CONFORMING AMENDMENT.—Section 6103(p)(4) of such 
Code is amended by striking ‘‘(o)(1)’’ both places it appears 
and inserting ‘‘(o)(1)(A)’’.
H. R. 2—104 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply on or after the date of the enactment of 
this Act. 
(g) TRANSITIONAL RULE.—Any person who— 
(1) on April 1, 2009 is engaged in business as a manufac-
turer of processed tobacco or as an importer of processed 
tobacco, and 
(2) before the end of the 90-day period beginning on such 
date, submits an application under subchapter B of chapter 
52 of such Code to engage in such business, may, notwith-
standing such subchapter B, continue to engage in such busi-
ness pending final action on such application. Pending such 
final action, all provisions of such chapter 52 shall apply to 
such applicant in the same manner and to the same extent 
as if such applicant were a holder of a permit under such 
chapter 52 to engage in such business. 
SEC. 703. TREASURY STUDY CONCERNING MAGNITUDE OF TOBACCO 
SMUGGLING IN THE UNITED STATES. 
Not later than one year after the date of the enactment of 
this Act, the Secretary of the Treasury shall conduct a study con-
cerning the magnitude of tobacco smuggling in the United States 
and submit to Congress recommendations for the most effective 
steps to reduce tobacco smuggling. Such study shall also include 
a review of the loss of Federal tax receipts due to illicit tobacco 
trade in the United States and the role of imported tobacco products 
in the illicit tobacco trade in the United States. 
SEC. 704. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 
The percentage under subparagraph (C) of section 401(1) of 
the Tax Increase Prevention and Reconciliation Act of 2005 in 
effect on the date of the enactment of this Act is increased by 
0.5 percentage point. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.