116 
effective as the final regulations on the day 
after that date; and 
‘‘(bb) the Secretary shall publish in 
the Federal Register notice of the final 
regulations.’’. 
SEC. 402. RULEMAKING AUTHORITY FOR ADVERTISING TO 
CHILDREN. 
(a) PURPOSE.—The purpose of this section is to re-
store the authority of the Federal Trade Commission to 
issue regulations that restrict the marketing or advertising 
of foods and beverages to children under the age of 18 
years if the Federal Trade Commission determines that 
there is evidence that consumption of certain foods and 
beverages is detrimental to the health of children. 
(b) AUTHORITY.—Section 18 of the Federal Trade 
Commission Act (15 U.S.C. 57a) is amended by striking 
subsection (h). 
SEC. 403. FOOD ADVERTISING IN SCHOOLS. 
Section 10 of the Child Nutrition Act of 1966 (42 
U.S.C. 1779) is amended by adding at the end the fol-
lowing: 
‘‘(d) FOOD ADVERTISING.—The Secretary may pro-
hibit the advertising of food in participating schools if the 
Secretary determines that consumption of the advertised 
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food has a detrimental effect on the diets or health of chil-
dren.’’. 
SEC. 404. DISALLOWANCE OF DEDUCTIONS FOR ADVER-
TISING AND MARKETING EXPENSES RELAT-
ING TO TOBACCO PRODUCT USE. 
(a) IN GENERAL.—Part IX of subchapter B of chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986 
(relating to items not deductible) is amended by adding 
at the end the following new section: 
‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR TOBACCO 
ADVERTISING AND MARKETING EXPENSES. 
‘‘No deduction shall be allowed under this chapter for 
expenses relating to advertising or marketing cigars, ciga-
rettes, smokeless tobacco, pipe tobacco, or any similar to-
bacco product. For purposes of this section, any term used 
in this section which is also used in section 5702 shall 
have the same meaning given such term by section 5702.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for such part IX is amended by adding after the 
item relating to section 280H the following new item: 
‘‘Sec. 280I. Disallowance of deduction for tobacco advertising and marketing 
expenses.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 405. FEDERAL-STATE TOBACCO COUNTER-ADVER-
TISING PROGRAMS. 
Part P of title III of the Public Health Service Act 
(42 U.S.C. 280g et seq.), as amended in section 312, is 
further amended by adding at the end the following: 
‘‘SEC. 399S. FEDERAL-STATE TOBACCO COUNTER-ADVER-
TISING PROGRAMS. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Director of the Centers for Disease Control and Pre-
vention, shall award grants to and enter into contracts 
with eligible entities for the implementation of national 
and local media (such as counter-advertising) and non- 
media campaigns designed to reduce the use of tobacco 
products. 
‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 
under subsection (a), an entity shall be— 
‘‘(1) a public entity, including a State public 
health department; or 
‘‘(2) a private, nonprofit entity that— 
‘‘(A) is not affiliated with a manufacturer 
or importer of a tobacco product; 
‘‘(B) has demonstrated a record of con-
ducting a national antitobacco public education 
campaign to effectively reduce the use of to-
bacco products; 
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‘‘(C) has expertise in conducting a multi- 
media communications campaign; and 
‘‘(D) has expertise in developing strategies 
that affect behavior changes in children and 
other targeted populations. 
‘‘(c) APPLICATION.—An eligible entity shall submit 
an application to the Secretary for a grant under this sec-
tion at such time, in such manner, and accompanied by 
such information as the Secretary may require. 
‘‘(d) USE OF FUNDS.—An eligible entity shall use 
amounts received under a grant under this section to— 
‘‘(1) design and implement multimedia public 
education and social marketing campaigns that— 
‘‘(A) discourage the use of tobacco prod-
ucts; 
‘‘(B) encourage the use of products de-
signed to enable tobacco use cessation; and 
‘‘(C) educate the public about the hazards 
of environmental tobacco smoke exposure; or 
‘‘(2) conduct research related to the effective-
ness of the campaigns described in paragraph (1). 
‘‘(e) ALLOCATION
OF GRANTS.—Of the amounts 
awarded under this section, the Secretary shall award— 
‘‘(1) 50 percent of such amounts to eligible 
public entities; and 
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‘‘(2) 50 percent of such amounts to eligible pri-
vate, nonprofit entities. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $200,000,000 to carry 
out this section.’’. 
Subtitle B—Penalties for Failure 
To Reduce Teen Smoking 
SEC. 411. CHILD CIGARETTE USE SURVEYS. 
(a) ANNUAL PERFORMANCE SURVEY.— 
(1) IN GENERAL.—Not later than August 31, 
2007, and annually thereafter, the Secretary of 
Health and Human Services (referred to in this sec-
tion as the ‘‘Secretary’’) shall publish the results of 
an annual cigarette survey, to be carried out after 
the date of enactment of this Act and completed 
prior to August 21, 2007, and prior to August 21 
of each year thereafter, to determine— 
(A) the percentage of all young individuals 
who used a type of cigarette within the 30-day 
period prior to the conduct of the survey in-
volved; and 
(B) the percentage of young individuals 
who identify each brand of each type of ciga-
rette as the usual brand smoked within such 
30-day period. 
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