I
105TH CONGRESS
2D SESSION
H. R. 4189
To amend the Public Health Service Act to establish authorities of the
departmental Office of Minority Health with respect to tobacco products,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1998
Mr. THOMPSON (for himself, Mr. UNDERWOOD, Mr. BECERRA, Mr. KILDEE,
Mrs. MINK of Hawaii, Ms. WATERS, Ms. BROWN of Florida, Mr. BROWN
of California, Ms. CARSON, Ms. CHRISTIAN-GREEN, Mr. CLAY, Mr. CLY-
BURN, Mr. CONYERS, Mr. CUMMINGS, Mr. DAVIS of Illinois, Mr. DIXON,
Mr. ENGEL, Mr. FATTAH, Mr. FALEOMAVAEGA, Mr. FILNER, Ms.
FURSE, Mr. FORD, Mr. GUTIERREZ, Mr. HASTINGS of Florida, Mr.
HINOJOSA, Mr. HILLIARD, Mr. HINCHEY, Mr. JACKSON of Illinois, Ms.
JACKSON-LEE of Texas, Ms. EDDIE BERNICE JOHNSON of Texas, Ms.
KILPATRICK, Mr. LANTOS, Ms. LEE, Mr. LEWIS of Georgia, Mr. MATSUI,
Mr. MEEKS of New York, Mrs. MEEK of Florida, Mr. MCDERMOTT, Ms.
MILLENDER-MCDONALD, Mr. NADLER, Ms. NORTON, Mr. OWENS, Mr.
PASTOR, Mr. PAYNE, Ms. PELOSI, Mr. RANGEL, Mr. RODRIGUEZ, Mr.
ROMERO-BARCELO´, Ms. ROYBAL-ALLARD, Mr. RUSH, Mr. SCOTT, Mr.
SERRANO, Mr. STOKES, Mr. TORRES, Mr. TOWNS, Ms. VELA´ZQUEZ, Mr.
WAXMAN, Mr. WYNN, Mr. MEEHAN, and Mr. GEPHARDT) introduced the
following bill; which was referred to the Committee on Commerce
A BILL
To amend the Public Health Service Act to establish authori-
ties of the departmental Office of Minority Health with
respect to tobacco products, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Minority Community
Tobacco Reduction Act’’.
SEC. 2. FINDINGS.
The Congress finds as follows with respect to ciga-
rettes and other tobacco products:
(1) Smoking rates among African American
and Hispanic teenagers rose dramatically from 1991
to 1997. During those years, smoking rates among
African American high school students increased by
a startling 80 percent, and smoking rates among
Hispanic high school students increased by 34 per-
cent.
(2) Smoking increases the rate of infant mortal-
ity and low birthweight births, with the risk of low
birthweight infants almost twice as high for smokers
than for nonsmokers. Among smokers, the rate of
sudden infant death syndrome is particularly high
for Hispanics, African Americans, and Asian Ameri-
cans.
(3) The most recent data shows disturbing
trends among Asian American and American Indian/
Alaska Native youth. From 1990 to 1995, smoking
increased by 17 percent among Asian American 12th
graders and by 26 percent among their American
Indian and Alaska Native counterparts. Moreover,
the Centers for Disease Control has found that
American Indians/Alaska Natives adults have the
highest tobacco use rate of all major racial/ethnic
groups in America at 42.2 percent (53.7 percent of
men and 33.1 percent of women) and the American
Indian Cancer Control Project has found that the
death rate among American Indians due to tobacco
abuse is double the death rate of other Americans.
An average of two out of every five American Indi-
ans die from tobacco abuse.
(4) Minority smoking rates could be signifi-
cantly higher if the data reflected statistics collected
for the territories of the United States. National to-
bacco legislation should include appropriate steps to
plan, compile, analyze, and evaluate data on tobacco
use for such territories.
(5) Smoking is a major cause of death and dis-
ease among all racial and ethnic minority groups.
(6) Lung cancer is the leading cancer death for
all such groups. The increase in youth smoking
threatens to reverse progress made against lung can-
cer among these groups.
(7) The tobacco industry has targeted minority
communities in carrying out advertising and pro-
tobacco products, a portion of such grants be
made available for directing such activities to-
ward minority groups.
(10) In order to redress the past targeting of
minority youth by the tobacco industry, financial
support of educational institutions that serve signifi-
cant numbers of minority youth should be increased.
(11) Any new regulations concerning the use of
tobacco products in national tobacco legislation
should recognize the historic American Indian tradi-
tional and ceremonial use of tobacco products, and
preserve and protect the cultural, religious, and cere-
monial uses of tobacco by members of Indian tribes.
(12) Any national tobacco legislation which
places new regulations on tobacco products concern-
ing tobacco use, commerce, or business must recog-
nize and respect Indian tribal sovereignty and tribal
authority to make and enforce laws regarding the
regulation of tobacco distributors and tobacco prod-
ucts on Indian lands.
(13) If national tobacco legislation restricts the
ability of the tobacco industry to sponsor athletic,
musical, artistic, or other social or cultural events or
activities, the resulting reduction in funds could lead
to the discontinuation of small, community-based
events and activities, and could force small, commu-
nity-based newspapers and other periodicals into
bankruptcy. Any temporary transition assistance
provided by national tobacco legislation to events,
activities, and periodicals that have received sponsor-
ship in the past from the tobacco industry must give
special consideration to small, community-based
events, activities, and periodicals until new sponsors
can be found.
TITLE I—AUTHORITIES OF DE-
PARTMENTAL OFFICE OF MI-
NORITY HEALTH WITH RE-
SPECT TO TOBACCO PROD-
UCTS
SEC. 101. AUTHORITIES OF DEPARTMENTAL OFFICE OF MI-
NORITY HEALTH.
(a) IN GENERAL.—Title XVII of the Public Health
Service Act (42 U.S.C. 300u et seq.)) is amended by in-
serting after section 1707 the following new section:
‘‘MINORITY HEALTH AND USE OF TOBACCO PRODUCTS
‘‘SEC. 1707A. (a) IN GENERAL.—
‘‘(1) INTERAGENCY COORDINATION OF MINOR-
ITY TOBACCO ACTIVITIES.—With respect to minority
tobacco activities of the Public Health Service, the
Secretary shall plan, coordinate, and evaluate all
such activities that are conducted or supported by
the agencies of the Service that are designated in
subsection (b)(2), including activities relating to dis-
ease prevention, health promotion, service delivery,
and research.
‘‘(2) ALLOCATION FROM AMOUNTS UNDER NA-
TIONAL
TOBACCO
LEGISLATION.—Of the amounts
made available for a fiscal year to a designated
agency of the Service for carrying out public health
activities regarding tobacco products (including
amounts made available to the agency pursuant to
national tobacco legislation), there shall be made
available, for carrying out minority tobacco activities
under paragraph (1) through the agency in accord-
ance with the plan under subsection (c), not less
than the percentage constituted by the ratio of—
‘‘(A) the number of individuals in the
States who smoke or otherwise use tobacco
products and are members of racial or ethnic
minority groups, as determined by the Director
of the Centers for Disease Control and Preven-
tion; to
‘‘(B) the total number of individuals in the
States who smoke or otherwise use such prod-
ucts, as so determined.
‘‘(b) ADMINISTRATION THROUGH OFFICE OF MINOR-
ITY HEALTH.—
‘‘(1) IN GENERAL.—The Secretary shall carry
out this section, including with respect to functions
under paragraph (3) and the plan under subsection
(c), acting through the Deputy Assistant Secretary
for Minority Health and in consultation with the ad-
visory committee under subsection (e).
‘‘(2) 
COLLABORATION
WITH
DESIGNATED
AGENCIES OF PUBLIC HEALTH SERVICE.—The Sec-
retary shall carry out this section, including with re-
spect to functions under paragraph (3) and the plan
under subsection (c), in collaboration with the Direc-
tor of the Centers for Disease Control and Preven-
tion, the Administrator of the Health Resources and
Services Administration, the Director of the Indian
Health Service, the Director of the National Insti-
tutes of Health, and the Administrator of the Sub-
stance Abuse and Mental Health Services Adminis-
tration (which agencies are collectively referred to in
this section as the ‘designated agencies’).
‘‘(3) COORDINATION.—In carrying out this sec-
tion, the Secretary shall act as the primary Federal
official with responsibility for overseeing all minority
tobacco activities conducted or supported by the
agencies referred to in paragraph (2), and—
‘‘(A) shall serve to represent matters re-
garding minority tobacco activities at all rel-
evant Executive branch task forces and commit-
tees; and
‘‘(B) shall maintain communications with
all relevant agencies of the Service and with
various other departments of the Federal Gov-
ernment in order to ensure the timely trans-
mission between such agencies of information
concerning such activities, including advances in
research, and to ensure the dissemination of in-
formation to affected communities and health
care providers.
‘‘(c) COMPREHENSIVE PLAN
FOR MINORITY TO-
BACCO ACTIVITIES OF DESIGNATED AGENCIES.—
‘‘(1) IN GENERAL.—Subject to the provisions of
this subsection and other applicable law, the Sec-
retary, in planning minority tobacco activities under
subsection (a)(1), shall—
‘‘(A) establish a comprehensive plan for
the conduct and support of minority tobacco ac-
tivities by the designated agencies of the Service
(which plan shall be first established under this
paragraph not later than 6 months after the ef-
fective date of this paragraph);
‘‘(B) ensure that all amounts appropriated
for the minority tobacco activities of such agen-
cies are expended in accordance with the Plan;
‘‘(C) review the Plan not less than annu-
ally, and revise the Plan as appropriate; and
‘‘(D) ensure that the Plan serves as a
broad, binding statement of policies regarding
the minority tobacco activities of such agencies,
but does not remove the responsibility of the
heads of the agencies for the approval of spe-
cific programs or projects, or for other details
of the daily administration of such activities, in
accordance with the Plan.
‘‘(2) CERTAIN
COMPONENTS
OF
PLAN.—The
Plan shall provide for the conduct or support by the
designated agencies of the Service of each category
of minority tobacco activities (as applicable to the
agency involved), as follows:
‘‘(A) Assisting individuals in ceasing the
use of tobacco products, including through the
use of drugs and cessation devices.
‘‘(B) Providing education regarding the
health risks associated with the use of tobacco
products.
‘‘(C) Making awards of grants or contracts
for the provision of health services for condi-
tions related to the use of tobacco products.
‘‘(D) Providing for biomedical and behav-
ioral research relating to such conditions.
‘‘(3) USE OF CRITERIA IN REPORT OF SURGEON
GENERAL; OTHER CRITERIA.—The Secretary shall in
developing the Plan, and the designated agencies of
the Service shall in carrying out the Plan, follow the
criteria that are relevant to the activity involved and
are presented in the report published in 1998 and
entitled ‘‘Tobacco Use Among U.S. Racial and Eth-
nic Minority Groups—A Report of the Surgeon Gen-
eral’’ (relating to the Surgeon General of the Public
Health Service), including criteria under the follow-
ing topics in such report:
‘‘(A) Patterns of tobacco use.
‘‘(B) Health consequences of tobacco use.
‘‘(C) Factors that influence tobacco use.
‘‘(D) Tobacco control and education ef-
forts.
In the case of the territories of the United States,
the Secretary shall in developing the Plan, and the
designated agencies of the Service shall in carrying
out the Plan, follow criteria that are relevant to the
activity involved and are developed on the basis of
data collected pursuant to paragraph (6).
‘‘(4) CULTURAL CONTEXT OF ACTIVITIES.—The
Secretary shall ensure that minority tobacco activi-
ties under the Plan are provided in contexts that are
culturally and linguistically appropriate for the pop-
ulations of individuals for whom the activities are in-
tended. American Indian Tribes shall, within their
own communities, determine what is culturally and
linguistically appropriate.
‘‘(5) COLLECTION
OF
DATA
ON
RATES
AND
HEALTH EFFECTS.—With respect to the rates of use
of tobacco products among racial and ethnic minor-
ity groups, and the health effects in such groups of
the use of such products, the Secretary shall ensure
that the Plan requires that data on such rates and
such effects be collected and evaluated through one
or more of the designated agencies of the Service,
including data categorized in accordance with the
following:
‘‘(E) Indian tribes and tribal organiza-
tions.
‘‘(e) ADVISORY COMMITTEE REGARDING MINORITY
TOBACCO ACTIVITIES.—The Secretary shall ensure that
there is in operation an advisory committee to advise the
Secretary on carrying out this section, and that such com-
mittee is appointed from among individuals who are not
officers or employees of the Federal Government and who
are experienced with respect to minority health concerns.
The Secretary shall carry out the preceding sentence by
appointing an advisory committee whose only responsibil-
ity is so advising the Secretary, except that such respon-
sibility shall be assigned to an advisory committee whose
function is generally advising the Office of Minority
Health, if such an advisory committee is required by law.
‘‘(f) EVALUATIONS.—Evaluations under subsection
(a)(1) shall include evaluations of the extent to which mi-
nority tobacco activities under such subsection have been
successful in facilitating a reduction in the consumption
of tobacco products by racial and ethnic minority groups.
‘‘(g) ANNUAL REPORTS.—Not later than February 1,
2000, and annually thereafter, the Secretary shall submit
to the Congress a report that provides with respect to the
preceding fiscal year the following:
‘‘(1) A description of the programs carried out
under subsection (a)(1).
‘‘(2) The results of evaluations under such sub-
section (including evaluations required pursuant to
subsection (f)).
‘‘(3) The recipients of awards under paragraph
(1)(B) of subsection (d), including a specification of
the total amount awarded for each of the categories
of entities specified in subparagraphs (A) through
(E) of paragraph (2) of such subsection.
‘‘(h) REQUIREMENTS REGARDING BLOCK GRANTS
FOR TOBACCO ACTIVITIES.—
‘‘(1) ALLOCATIONS FOR MINORITY TOBACCO AC-
TIVITIES; INVOLVEMENT OF STATE OFFICE OF MI-
NORITY HEALTH.—If from amounts received by the
Federal Government pursuant to national tobacco
legislation one or more programs are established
under which the Secretary makes block grants to the
States, and if the purposes of the program involved
include one or more tobacco activities, then the Sec-
retary may not make a grant under the program un-
less the State involved submits to the Secretary (in
the application for the grant) agreements as follows:
‘‘(A) Of the amounts provided in the
grant, the State will make available, for direct-
ing such tobacco activities at members of racial
and ethnic minority groups (subject to para-
graph (2)), not less than the percentage con-
stituted by the ratio of—
‘‘(i) the number of individuals in the
State who smoke or otherwise use tobacco
products and are members of racial or eth-
nic minority groups, as determined by the
Director of the Centers for Disease Control
and Prevention; to
‘‘(ii) the total number of individuals in
the States who smoke or otherwise use
such products, as so determined.
‘‘(B) If the State has established an office
of minority health, the expenditure of the
amounts made available pursuant to subpara-
graph (A) will be administered by such office,
or by another office or agency of the State in
collaboration with the office of minority health.
‘‘(2) USE OF GRANTS TO ESTABLISH AND OP-
ERATE STATE OFFICES OF MINORITY HEALTH; USES
REGARDING INDIAN HEALTH SERVICE.—
‘‘(A) IN GENERAL.—With respect to a pro-
gram of block grants to which paragraph (1)
applies, a State may, from the portion of the
grant made available pursuant to subparagraph
(A) of such paragraph, expend amounts to es-
tablish or operate (or both, as applicable) an of-
fice of minority health or to make grants to In-
dian Health Service area offices, subject to sub-
paragraph (B).
‘‘(B) MAINTENANCE OF EFFORT REGARD-
ING EXISTING OFFICES.—If as of the effective
date of this section a State has established an
office of minority health, the authority in sub-
paragraph (A) to expend amounts for the oper-
ation of such office is subject to the condition
that the State submit to the Secretary (in the
application referred to in paragraph (1)) an
agreement that the State will maintain expendi-
tures of non-Federal amounts for such office at
a level that is not less than the level of such ex-
penditures maintained by the State for the of-
fice for the fiscal year preceding the fiscal year
for which the State is applying to receive a
grant under the program involved.
‘‘(3) 
APPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—With respect to the administration of this
subsection, subsections (a) through (g) do not apply
to this subsection. The Secretary of Health and
Human Services may carry out this subsection act-
ing through such offices or agencies of the Public
Health Service as the Secretary determines to be ap-
propriate.
‘‘(i) DEFINITIONS.—
‘‘(1) MINORITY
TOBACCO
ACTIVITIES.—For
purposes of this section:
‘‘(A) The term ‘minority tobacco activities’
means tobacco activities that are directed to-
ward members of racial and ethnic minority
groups.
‘‘(B) The term ‘tobacco activities’ means
each of the following activities:
‘‘(i) Assisting individuals in ceasing
the use of tobacco products.
‘‘(ii) Providing education regarding
the health risks associated with the use of
tobacco products, including through adver-
tisements to counter the influence of ad-
vertisements that promote the use of such
products.
‘‘(iii) Providing health services for
conditions related to the use of tobacco
products.
‘‘(iv) Providing for biomedical and be-
havioral research relating to such condi-
tions.
‘‘(2) OTHER TERMS.—For purposes of this sec-
tion:
‘‘(A) The term ‘designated agencies’, with
respect to the agencies of the Public Health
Service, has the meaning indicated for such
term in subsection (b)(2).
‘‘(B) The term ‘disproportionate share hos-
pital’ means a hospital that is eligible for an
additional payment amount as a disproportion-
ate share hospital under section 1886(d)(5)(F)
of the Social Security Act or for a payment ad-
justment as a disproportionate share hospital
under a State plan under section 1923 of such
Act.
‘‘(C) The term ‘federally qualified health
center’ has the meaning given such term in sec-
tion 1905(l)(2)(B) of the Social Security Act.
‘‘(D) The terms ‘Indian tribe’ and ‘tribal
organization’ have the same meaning given such
terms in section 4(b) and section 4(c) of the In-
dian Self-Determination and Education Assist-
ance Act.
‘‘(E)(i) The term ‘racial and ethnic minor-
ity group’ means each of American Indians (in-
cluding Alaska Natives, Eskimos, Aleuts, and
any other populations or individuals eligible to
receive services from the Indian Health Serv-
ice); Asian Americans and Pacific Islanders;
Blacks; Hispanics; and Native Hawaiians.
‘‘(ii) The term ‘Hispanics’ means individ-
uals whose origin is Mexican, Puerto Rican,
Cuban, Central or South American, or any
other Spanish-speaking country.
‘‘(F)(i) The term ‘State’ means each of the
several States, the District of Columbia, and
the territories of the United States.
‘‘(ii) The term ‘territories of the United
States’ means the Commonwealth of Puerto
Rico, Guam, the Virgin Islands, the Common-
wealth of the Northern Mariana Islands, and
American Samoa.’’.
TITLE II—ADDITIONAL
AUTHORITIES
SEC. 201. FUNDS FROM NATIONAL TOBACCO LEGISLATION;
ALLOCATION FOR GRANTS TO MINORITY
MEDICAL SCHOOLS.
Part B of title VII of the Public Health Service Act
(42 U.S.C. 293 et seq.) is amended by adding at the end
the following section:
‘‘SEC. 741. GRANTS TO MINORITY MEDICAL SCHOOLS FOR
ENDOWMENTS; PUBLIC HEALTH PROGRAMS
REGARDING TOBACCO PRODUCTS.
‘‘(a) IN GENERAL.—From amounts reserved under
subsection (c), the Secretary shall make grants to schools
specified in subsection (b) for the purpose of establishing
at the schools endowments each of whose income is used
exclusively to carry out—
‘‘(1) public health programs; and
‘‘(2) programs of biomedical research on dis-
eases for which the consumption of tobacco products
is a principal causal factor.
‘‘(b) RELEVANT SCHOOLS.—The schools referred to
in subsection (a) are the following medical schools (schools
of medicine or osteopathic medicine):
‘‘(1) The four medical schools in the States
whose enrollment for academic year 1998 of Black
individuals constituted a higher percentage of such
individuals than other medical schools in the States.
‘‘(2) The four medical schools in the States (or
consortia of such schools) whose enrollment for aca-
demic year 1998 of Hispanic individuals constituted
a higher percentage of such individuals than other
medical schools in the States.
‘‘(3) The three medical schools in the States (or
consortia of such schools) whose enrollment for aca-
demic year 1998 of Asian American individuals and
Pacific Islander individuals constituted a higher per-
centage of such individuals than other medical
schools in the States.
‘‘(4) The two medical schools in the States (or
consortia of such schools) whose enrollment for aca-
demic year 1998 of Native American individuals con-
stituted a higher percentage of such individuals than
other medical schools in the States.
‘‘(c) FUNDING.—From amounts received by the Fed-
eral Government pursuant to national tobacco legislation,
the Secretary shall, for each of the first 10 fiscal years
following the date of the enactment of such legislation, re-
serve amounts for making a grant under subsection (a)
to each of the schools specified in subsection (b). Each
such grant shall be made in the amount of $5,000,000.’’.
SEC. 202. FUNDS FROM NATIONAL TOBACCO LEGISLATION;
ALLOCATION 
FOR 
CHILD 
HEALTH 
AND
OTHER BIOMEDICAL RESEARCH AND RELAT-
ED PROGRAMS.
(a) IN GENERAL.—From amounts reserved under
subsection (e), the Secretary of Health and Human Serv-
ices (in this section referred to as the ‘‘Secretary’’) shall
make grants to public and nonprofit private entities for
research, training, and demonstrations regarding child
health and human development and other biomedical re-
search (including with respect to tobacco products), and
for related programs.
(b) USE OF CRITERIA IN REPORT OF SURGEON GEN-
ERAL.—Programs under subsection (a) shall follow the
criteria—
(1) that are relevant to the activity involved and
are presented in the report published in 1998 and
entitled ‘‘Tobacco Use Among U.S. Racial and Eth-
nic Minority Groups—A Report of the Surgeon Gen-
eral’’ (relating to the Surgeon General of the Public
Health Service); and
(2) that, in the case of the territories of the
United States, are relevant to the activity involved
and are developed on the basis of data collected pur-
suant to section 1707A(c)(6) of the Public Health
Service Act.
(c) FACILITATION OF RESEARCH PROGRAMS.—The
Secretary shall under subsection (a) give priority to pro-
grams of education and training to prepare individuals to
conduct the research described in such subsection and to
programs for ensuring that health professions schools have
the capacity to provide such education and training. The
Secretary shall carry out the preceding sentence primarily
through programs under title VII of the Public Health
Service Act for individuals from disadvantaged back-
grounds, including individuals who are members of racial
and ethnic minority groups, and for schools that serve sig-
nificant numbers of such individuals, including programs
regarding undergraduate education, graduate education,
scholarships, fellowships, loan repayments, faculty-related
activities, curriculum development, and improving re-
search facilities.
(d) DEFINITION.—For purposes of this section, the
term ‘‘health professions schools’’ means all schools and
programs described in section 799 of the Public Health
Service Act.
(e) FUNDING.—From amounts received by the Fed-
eral Government pursuant to national tobacco legislation,
the Secretary shall, for each of the first 10 fiscal years
following the date of the enactment of such legislation, re-
serve $50,000,000 for carrying out this section. Of the
amounts so reserved for a fiscal year, the Secretary shall
reserve 55 percent for programs referred to in subsection
(c) with respect to undergraduates, and 35 percent for
programs referred to in such subsection with respect to
health professions schools and graduate students at such
schools.
SEC. 203. PREVENTION ACTIVITIES OF COMMUNITY, MI-
GRANT, AND HOMELESS HEALTH CENTERS.
(a) PROGRAM.—From amounts reserved under sub-
section (b), the Secretary of Health and Human Services
shall in accordance with such subsection make available
amounts to community, migrant, and homeless health cen-
ters receiving grants under section 330 of the Public
Health Service Act. The purpose of such amounts is to
assist such health centers in providing health services for
diseases related to tobacco and in preventing tobacco-re-
lated diseases.
(b) FUNDING.—
(1) IN GENERAL.—From amounts received by
the Federal Government pursuant to national to-
bacco legislation, the Secretary shall, for each of the
first 10 fiscal years following the date of the enact-
ment of such legislation, reserve $300,000,000 for
carrying out subsection (a), except as provided in
paragraph (2).
(2) LIMITATION.—No amount may be reserved
under paragraph (1) for any fiscal year for which
the amount appropriated for such year for commu-
nity, migrant, and homeless health centers under
section 330 of the Public Health Service Act is less
than the amount appropriated for such health cen-
ters for the previous fiscal year.
SEC. 204. TRANSITION ASSISTANCE REGARDING EFFECTS
OF RESTRICTIONS ON ADVERTISING AND
PROMOTION OF TOBACCO PRODUCTS.
(a) APPLICABILITY.—This section applies if—
(1) national tobacco legislation significantly re-
stricts the authority or capacity of tobacco manufac-
turers or distributors to advertise or promote to-
bacco products; and
(2) the Secretary of Health and Human Serv-
ices or other head of a Federal department (in this
section referred to as the ‘‘Secretary’’) carries out a
program of awarding grants or contracts to public or
private entities for the purpose of offsetting the ad-
verse financial effects that such entities may experi-
ence as a result of the loss of revenues associated
with the advertising or promotion of tobacco prod-
ucts.
(b) GRANTS TO CERTAIN ENTITIES.—
(1) IN GENERAL.—With respect to entities that
are eligible for grants referred to in subsection
(a)(2), the Secretary shall include among such enti-
ties public or private entities that, before the date of
the enactment of this Act, had—
(A) a history of holding or carrying out
one or more athletic, musical, artistic, or other
social or cultural events or activities that were
sponsored in whole or in part by a tobacco
manufacturer or distributor;
(B) a history of participating, with finan-
cial support provided by a tobacco manufac-
turer or distributor, in an athletic, musical, ar-
tistic, or other social or cultural event or activ-
ity; or
(C) a history of publishing one or more
periodicals for which the publication of adver-
tisements or promotions for tobacco products
has been a significant source of revenue.
(2) SPECIAL CONSIDERATION FOR CERTAIN EN-
TITIES.—In making awards under paragraph (1),
the Secretary shall give special consideration to
small, community-based events, activities, and peri-
odicals, including—
(A) events and activities held or signifi-
cantly sponsored by, and periodicals published
by, businesses in which the predominant owner-
ship interests are held by individuals who are
from 
disadvantaged 
background, 
including
members of racial or ethnic minority groups;
(B) events and activities held in commu-
nities in which a substantial number of such in-
dividuals reside; and
(C) periodicals whose circulation is pri-
marily among such individuals.
(3) USE OF ASSISTANCE FOR EVENT, ACTIVITY,
OR PERIODICAL INVOLVED; CONDITION REGARDING
ANTITOBACCO
ADVERTISING.—An 
award 
under
paragraph (1) to an entity may be expended for the
activities described in such paragraph that form the
basis of the history that establishes the eligibility of
the entity to receive the award, subject to the condi-
tion that, in addition, the entity expend a portion of
the award to sponsor, in accordance with criteria es-
tablished for the entity by the Secretary, an adver-
tisement that is associated with the entity and that
is intended to discourage individuals from consuming
tobacco products.
SEC. 205. TRADITIONAL USE EXCEPTION PERTAINING TO
AMERICAN INDIANS.
(a) IN GENERAL.—In recognition of the religious,
ceremonial, and traditional uses of tobacco and tobacco
products by Indian tribes and the members of such tribes,
nothing in national tobacco legislation shall be construed
to infringe upon the right of such tribes or members of
such tribes to acquire, possess, use, or transfer any to-
bacco products for such purposes, or to permit an infringe-
ment upon the ability of minors to participate and use to-
bacco products for religious, ceremonial, or traditional
purposes.
(b) APPLICATION OF PROVISIONS.—Subsection (a)
shall apply only to those quantities of tobacco or tobacco
products necessary to fulfill the religious, ceremonial, or
traditional purposes of an Indian tribe or the members
of such tribe, and shall not be construed to permit the
general marketing of tobacco and tobacco products in a
manner that is not in compliance with chapter IX of the
Federal Food, Drug, and Cosmetic Act as added by na-
tional tobacco legislation.
(c) LIMITATION.—Nothing in national tobacco legis-
lation shall be construed to permit an Indian tribe or
member of such a tribe to acquire, possess, use, or trans-
fer any tobacco or tobacco product in violation of section
2342 of title 18, United States Code, with respect to the
transportation of contraband cigarettes.
Æ