261 
‘‘(i) The hospital submits to the Sec-
retary an annual report containing a de-
tailed description of— 
‘‘(I) the identity of each physi-
cian owner and physician investor and 
any other owners or investors of the 
hospital; and 
‘‘(II) the nature and extent of all 
ownership and investment interests in 
the hospital. 
‘‘(ii) The hospital has procedures in 
place to require that any referring physi-
cian owner or investor discloses to the pa-
tient being referred, by a time that permits 
the patient to make a meaningful decision 
regarding the receipt of care, as deter-
mined by the Secretary— 
‘‘(I) the ownership or investment 
interest, as applicable, of such refer-
ring physician in the hospital; and 
‘‘(II) if applicable, any such own-
ership or investment interest of the 
treating physician. 
‘‘(iii) The hospital does not condition 
any physician ownership or investment in-
262 
terests either directly or indirectly on the 
physician owner or investor making or in-
fluencing referrals to the hospital or other-
wise generating business for the hospital. 
‘‘(iv) The hospital discloses the fact 
that the hospital is partially owned by phy-
sicians— 
‘‘(I) on any public website for the 
hospital; and 
‘‘(II) in any public advertising 
for the hospital. 
‘‘(E) ENSURING
BONA
FIDE
OWNERSHIP 
AND INVESTMENT.— 
‘‘(i) Any ownership or investment in-
terests that the hospital offers to a physi-
cian owner or investor are not offered on 
more favorable terms than the terms of-
fered to a person who is not a physician 
owner or investor. 
‘‘(ii) The hospital (or any investors in 
the hospital) does not directly or indirectly 
provide loans or financing for any physi-
cian owner or investor in the hospital. 
‘‘(iii) The hospital (or any investors in 
the hospital) does not directly or indirectly
263 
guarantee a loan, make a payment toward 
a loan, or otherwise subsidize a loan, for 
any individual physician owner or investor 
or group of physician owners or investors 
that is related to acquiring any ownership 
or investment interest in the hospital. 
‘‘(iv) Ownership or investment returns 
are distributed to each owner or investor in 
the hospital in an amount that is directly 
proportional to the ownership or invest-
ment interest of such owner or investor in 
the hospital. 
‘‘(v) Physician owners and investors 
do not receive, directly or indirectly, any 
guaranteed receipt of or right to purchase 
other business interests related to the hos-
pital, including the purchase or lease of 
any property under the control of other 
owners or investors in the hospital or lo-
cated near the premises of the hospital. 
‘‘(vi) The hospital does not offer a 
physician owner or investor the oppor-
tunity to purchase or lease any property 
under the control of the hospital or any 
other owner or investor in the hospital on
264 
more favorable terms than the terms of-
fered to an individual who is not a physi-
cian owner or investor. 
‘‘(F) PATIENT SAFETY.—The hospital has 
the capacity to— 
‘‘(i) provide assessment and initial 
treatment for patients; and 
‘‘(ii) refer and transfer patients to 
hospitals with the capability to treat the 
needs of the patient involved. 
‘‘(G) LIMITATION
ON
APPLICATION
TO 
CERTAIN
CONVERTED
FACILITIES.—The hos-
pital was not converted from an ambulatory 
surgical center to a hospital on or after the date 
of enactment of this subsection. 
‘‘(2) 
PUBLICATION
OF
INFORMATION
RE-
PORTED.—The Secretary shall publish, and update 
on an annual basis, the information submitted by 
hospitals under paragraph (1)(D)(i) on the public 
Internet website of the Centers for Medicare & Med-
icaid Services. 
‘‘(3) EXCEPTION TO PROHIBITION ON EXPAN-
SION OF FACILITY CAPACITY.— 
‘‘(A) PROCESS.—
265 
‘‘(i) ESTABLISHMENT.—The Secretary 
shall establish and implement a process 
under which an applicable hospital (as de-
fined in subparagraph (E)) may apply for 
an exception from the requirement under 
paragraph (1)(C). 
‘‘(ii) OPPORTUNITY FOR COMMUNITY 
INPUT.—The process under clause (i) shall 
provide individuals and entities in the com-
munity in which the applicable hospital ap-
plying for an exception is located with the 
opportunity to provide input with respect 
to the application. 
‘‘(iii) 
TIMING
FOR
IMPLEMENTA-
TION.—The Secretary shall implement the 
process under clause (i) on July 1, 2010. 
‘‘(iv) REGULATIONS.—Not later than 
June 1, 2010, the Secretary shall promul-
gate regulations to carry out the process 
under clause (i). 
‘‘(B) FREQUENCY.—The process described 
in subparagraph (A) shall permit an applicable 
hospital to apply for an exception up to once 
every 2 years. 
‘‘(C) PERMITTED INCREASE.—
266 
‘‘(i) IN GENERAL.—Subject to clause 
(ii) and subparagraph (D), an applicable 
hospital granted an exception under the 
process described in subparagraph (A) may 
increase the number of operating rooms, 
procedure rooms, and beds of the applica-
ble hospital above the baseline number of 
operating rooms, procedure rooms, and 
beds of the applicable hospital (or, if the 
applicable hospital has been granted a pre-
vious exception under this paragraph, 
above the number of operating rooms, pro-
cedure rooms, and beds of the hospital 
after the application of the most recent in-
crease under such an exception). 
‘‘(ii) 100 PERCENT INCREASE LIMITA-
TION.—The Secretary shall not permit an 
increase in the number of operating rooms, 
procedure rooms, and beds of an applicable 
hospital under clause (i) to the extent such 
increase would result in the number of op-
erating rooms, procedure rooms, and beds 
of the applicable hospital exceeding 200 
percent of the baseline number of oper-
267 
ating rooms, procedure rooms, and beds of 
the applicable hospital. 
‘‘(iii) BASELINE
NUMBER
OF
OPER-
ATING
ROOMS, PROCEDURE
ROOMS, AND 
BEDS.—In this paragraph, the term ‘base-
line number of operating rooms, procedure 
rooms, and beds’ means the number of op-
erating rooms, procedure rooms, and beds 
of the applicable hospital as of the date of 
enactment of this subsection. 
‘‘(D) INCREASE
LIMITED
TO
FACILITIES 
ON THE MAIN CAMPUS OF THE HOSPITAL.— 
Any increase in the number of operating rooms, 
procedure rooms, and beds of an applicable hos-
pital pursuant to this paragraph may only occur 
in facilities on the main campus of the applica-
ble hospital. 
‘‘(E) APPLICABLE
HOSPITAL.—In this 
paragraph, the term ‘applicable hospital’ means 
a hospital— 
‘‘(i) that is located in a county in 
which the percentage increase in the popu-
lation during the most recent 5-year period 
(as of the date of the application under 
subparagraph (A)) is at least 150 percent
268 
of the percentage increase in the popu-
lation growth of the State in which the 
hospital is located during that period, as 
estimated by Bureau of the Census and 
available to the Secretary; 
‘‘(ii) whose annual percent of total in-
patient admissions that represent inpatient 
admissions under the program under title 
XIX is equal to or greater than the aver-
age percent with respect to such admis-
sions for all hospitals located in the county 
in which the hospital is located; 
‘‘(iii) that does not discriminate 
against beneficiaries of Federal health care 
programs and does not permit physicians 
practicing at the hospital to discriminate 
against such beneficiaries; 
‘‘(iv) that is located in a State in 
which the average bed capacity in the 
State is less than the national average bed 
capacity; and 
‘‘(v) that has an average bed occu-
pancy rate that is greater than the average 
bed occupancy rate in the State in which 
the hospital is located.
269 
‘‘(F) PROCEDURE
ROOMS.—In this sub-
section, the term ‘procedure rooms’ includes 
rooms in which catheterizations, angiographies, 
angiograms, and endoscopies are performed, ex-
cept such term shall not include emergency 
rooms or departments (exclusive of rooms in 
which 
catheterizations, 
angiographies, 
angiograms, and endoscopies are performed). 
‘‘(G) 
PUBLICATION
OF
FINAL
DECI-
SIONS.—Not later than 60 days after receiving 
a complete application under this paragraph, 
the Secretary shall publish in the Federal Reg-
ister the final decision with respect to such ap-
plication. 
‘‘(H) LIMITATION
ON
REVIEW.—There 
shall be no administrative or judicial review 
under section 1869, section 1878, or otherwise 
of the process under this paragraph (including 
the establishment of such process). 
‘‘(4) COLLECTION OF OWNERSHIP AND INVEST-
MENT
INFORMATION.—For purposes of subpara-
graphs (A)(i) and (B) of paragraph (1), the Sec-
retary shall collect physician ownership and invest-
ment information for each hospital.
270 
‘‘(5) PHYSICIAN
OWNER
OR
INVESTOR
DE-
FINED.—For purposes of this subsection, the term 
‘physician owner or investor’ means a physician (or 
an immediate family member of such physician) with 
a direct or an indirect ownership or investment in-
terest in the hospital. 
‘‘(6) PATIENT SAFETY REQUIREMENT.—In the 
case of a hospital to which the requirements of para-
graph (1) apply, insofar as the hospital described in 
this subsection admits a patient and does not have 
any physician available on the premises to provide 
services during all hours in which the hospital is 
providing services to such patient, before admitting 
the patient— 
‘‘(A) the hospital shall disclose such fact to 
a patient; and 
‘‘(B) following such disclosure, the hospital 
shall receive from the patient a signed acknowl-
edgment that the patient understands such fact. 
‘‘(7) CLARIFICATION.—Nothing in this sub-
section shall be construed as preventing the Sec-
retary from revoking a hospital’s provider agreement 
if not in compliance with regulations implementing 
section 1866.’’. 
(b) ENFORCEMENT.—
271 
(1) ENSURING COMPLIANCE.—The Secretary of 
Health and Human Services shall establish policies 
and procedures to ensure compliance with the re-
quirements described in subsections (i)(1) and (i)(7) 
of section 1877 of the Social Security Act, as added 
by subsection (a)(3), beginning on the date such re-
quirements first apply. Such policies and procedures 
may include unannounced site reviews of hospitals. 
(2) AUDITS.—Beginning not later than July 1, 
2011, the Secretary of Health and Human Services 
shall conduct audits to determine if hospitals violate 
the requirements referred to in paragraph (1). 
TITLE VII—REVENUE 
PROVISIONS 
SEC. 701. INCREASE IN EXCISE TAX RATE ON TOBACCO 
PRODUCTS. 
(a) CIGARS.— 
(1) SMALL CIGARS.—Paragraph (1) of section 
5701(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(1) SMALL CIGARS.—On cigars, weighing not 
more than 3 pounds per thousand, the amount de-
termined in accordance with the following table: 
‘‘Cigars Removed During Calendar Year— 
Tax Rate 
Per Thou-
sand— 
2009 or 2010 ..................................................................................
$12.50
272 
‘‘Cigars Removed During Calendar Year— 
Tax Rate 
Per Thou-
sand— 
2011 or 2012 ..................................................................................
$25.00
2013 or 2014 ..................................................................................
$37.50
2015 or thereafter ..........................................................................
$50.00.’’. 
(2) LARGE CIGARS.—Paragraph (2) of section 
5701(a) of such Code is amended— 
(A) by striking ‘‘20.719 percent (18.063 
percent on cigars removed during 2000 or 
2001)’’ and inserting ‘‘52.4 percent’’, and 
(B) by striking ‘‘$48.75 per thousand 
($42.50 per thousand on cigars removed during 
2000 or 2001)’’ and inserting ‘‘40 cents per 
cigar’’. 
(b) CIGARETTES.—Section 5701(b) of such Code is 
amended— 
(1) by striking ‘‘$19.50 per thousand ($17 per 
thousand on cigarettes removed during 2000 or 
2001)’’ in paragraph (1) and inserting ‘‘$50.00 per 
thousand’’, and 
(2) by striking ‘‘$40.95 per thousand ($35.70 
per thousand on cigarettes removed during 2000 or 
2001)’’ in paragraph (2) and inserting ‘‘$105.00 per 
thousand’’. 
(c) CIGARETTE PAPERS.—Section 5701(c) of such 
Code is amended by striking ‘‘1.22 cents (1.06 cents on
273 
cigarette papers removed during 2000 or 2001)’’ and in-
serting ‘‘3.13 cents’’. 
(d) CIGARETTE TUBES.—Section 5701(d) of such 
Code is amended by striking ‘‘2.44 cents (2.13 cents on 
cigarette tubes removed during 2000 or 2001)’’ and in-
serting ‘‘6.26 cents’’. 
(e) SMOKELESS TOBACCO.—Section 5701(e) of such 
Code is amended— 
(1) by striking ‘‘58.5 cents (51 cents on snuff 
removed during 2000 or 2001)’’ in paragraph (1) 
and inserting ‘‘$1.50’’, and 
(2) by striking ‘‘19.5 cents (17 cents on chew-
ing tobacco removed during 2000 or 2001)’’ in para-
graph (2) and inserting ‘‘50 cents’’. 
(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 
‘‘$2.8126’’. 
(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 ‘‘$24.62’’. 
(h) FLOOR STOCKS TAXES.— 
(1) IMPOSITION OF TAX.—On tobacco products 
(other than cigars described in section 5701(a)(2) of
274 
the Internal Revenue Code of 1986) and cigarette 
papers and tubes manufactured in or imported into 
the United States which are removed before any tax 
increase date 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 such date, for which such person 
is liable. 
(3) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person hold-
ing tobacco products, cigarette papers, or ciga-
rette tubes on any tax increase date, to which 
any tax imposed by paragraph (1) applies shall 
be liable for such tax.
275 
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe by reg-
ulations. 
(C) TIME FOR PAYMENT.— 
(i) IN GENERAL.—The tax imposed by 
paragraph (1) shall be paid on or before 
August 1, 2009. 
(ii) SPECIAL
RULE
FOR
SMALL
CI-
GARS.—In the case of small cigars, the tax 
imposed by paragraph (1) on or after Jan-
uary 1, 2011, shall be paid on or before 
April 1 following any tax increase date. 
(4) ARTICLES
IN
FOREIGN
TRADE
ZONES.— 
Notwithstanding the Act of June 18, 1934 (com-
monly known as the Foreign Trade Zone Act, 48 
Stat. 998, 19 U.S.C. 81a et seq.) or any other provi-
sion of law, any article which is located in a foreign 
trade zone on any tax increase date shall be subject 
to the tax imposed by paragraph (1) if— 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant 
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or
276 
(B) such article is held on such date under 
the supervision of an officer of the United 
States Customs and Border Protection of the 
Department of Homeland Security pursuant to 
the 2d proviso of such section 3(a). 
(5) DEFINITIONS.—For purposes of this sub-
section— 
(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) TAX INCREASE DATE.—The term ‘‘tax 
increase date’’ means April 1, 2009, January 1, 
2011, January 1, 2013, and January 1, 2015. 
(C) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the 
Secretary’s delegate. 
(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
277 
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 ultimate burden of the tax imposed by para-
graph (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 
REQUIREMENTS FOR MANUFACTURERS AND IMPORTERS 
OF PROCESSED TOBACCO.— 
(1) PERMIT.— 
(A) APPLICATION.—Section 5712 of the 
Internal Revenue 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 to-
bacco’’ after ‘‘tobacco products’’. 
(2) INVENTORIES, REPORTS, AND PACKAGES.—
278 
(A) INVENTORIES.—Section 5721 of such 
Code is amended by inserting ‘‘, processed to-
bacco,’’ after ‘‘tobacco products’’. 
(B) REPORTS.—Section 5722 of such Code 
is amended by inserting ‘‘, processed tobacco,’’ 
after ‘‘tobacco products’’. 
(C) PACKAGES, MARKS, LABELS, AND NO-
TICES.—Section 5723 of such Code is amended 
by inserting ‘‘, processed tobacco,’’ after ‘‘to-
bacco 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
TO-
BACCO.—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 manufacturer of tobacco 
products or processed tobacco.’’.
279 
(5) 
CONFORMING
AMENDMENT.—Sections 
5702(j), 5702(k), and 5704(h) of such Code is 
amended by inserting ‘‘, or any processed tobacco,’’ 
after ‘‘nontaxpaid tobacco products or cigarette pa-
pers or tubes’’. 
(6) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on April 1, 2009. 
(b) BASIS FOR DENIAL, SUSPENSION, OR REVOCA-
TION OF PERMITS.— 
(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 stock-
holder and, in the case of a partnership, a part-
ner)— 
‘‘(A) is, by reason of his business experi-
ence, financial standing, or trade connections or 
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, processed tobacco, ciga-
rette paper, or cigarette tubes, not likely to 
maintain operations in compliance with this 
chapter,
280 
‘‘(B) has been convicted of a felony viola-
tion of any provision of Federal or State crimi-
nal law relating to tobacco products, processed 
tobacco, cigarette paper, or cigarette tubes, or 
‘‘(C) has failed to disclose any material in-
formation 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 per-
mit— 
‘‘(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 in-
formation 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,
282 
(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 sec-
tion 6501 of the Internal Revenue Code of 1986 
(but only with respect to taxes imposed under chap-
ters 51 and 52 of such Code)’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection 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 In-
ternal Revenue Code of 1986 is amended by insert-
ing ‘‘or cigars, or for use as wrappers thereof’’ be-
fore the period at the end. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection 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 MANUFAC-
TURED TOBACCO PRODUCTS.—
283 
(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 imme-
diately upon manufacture.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection 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 sub-
paragraph (A) (as so redesignated) the following 
new subparagraph:
284 
‘‘(B) USE IN CERTAIN PROCEEDINGS.—Re-
turns and return information disclosed to a 
Federal agency under subparagraph (A) may be 
used in an action or proceeding (or in prepara-
tion for such action or proceeding) brought 
under section 625 of the American Jobs Cre-
ation Act of 2004 for the collection of any un-
paid 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)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply on or after the date 
of the enactment of this Act. 
(g) TRANSITIONAL RULE.—Any person who— 
(1) on April 1 is engaged in business as a man-
ufacturer of processed tobacco or as an importer of 
processed tobacco, and 
(2) before the end of the 90-day period begin-
ning on such date, submits an application under 
subchapter B of chapter 52 of such Code to engage 
in such business, may, notwithstanding such sub-
chapter B, continue to engage in such business
285 
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 enact-
ment of this Act, the Secretary of the Treasury shall con-
duct a study concerning the magnitude of tobacco smug-
gling in the United States and submit to Congress rec-
ommendations for the most effective steps to reduce to-
bacco 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 to-
bacco 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
286 
Act of 2005 in effect on the date of the enactment of this 
Act is increased by 1 percentage point. 
Passed the House of Representatives January 14, 
2009. 
Attest: 
Clerk.
111TH CONGRESS 
1ST SESSION 
H. R. 2 
AN ACT 
To amend title XXI of the Social Security Act to 
extend and improve the Children’s Health Insur-
ance Program, and for other purposes.