111
‘‘(D) Information and education programs
to prevent adverse health conditions.
‘‘(E) Accountability and health care qual-
ity improvement activities.
‘‘(F) The provision of public health labora-
tory services.
‘‘(G) Training for public health profes-
sionals.
‘‘(H) Health care leadership, policy devel-
opment, coalition-building, and administrative
activities.
‘‘(I) Integration and coordination of pre-
vention programs and services of health plans,
community-based providers, government health
agencies, and other government agencies that
affect health including education, labor, trans-
portation, welfare, criminal justice, environ-
ment, agriculture and housing.
‘‘(J) Research on effective and cost-effec-
tive public health practices.
‘‘(7) ENABLING SERVICES.—The term ‘enabling
services’ means community outreach, health edu-
cation, transportation, language translation, and
other services that facilitate or otherwise assist eligi-
112
ble individuals to receive health services provided
under this title.
‘‘(8) FAMILY.—The term ‘family’ means a preg-
nant woman residing alone or a group of two or
more individuals who reside together in the same
housing unit. Such individuals may be related (such
as parent and child) or unrelated (such as guardian
and foster child) individuals. In the case of children
who do not reside with their parents, such term may
also include individuals (such as family friends) or
entities (such as government agencies) that have pri-
mary responsibility for the health and welfare of the
child.
‘‘(9) INFORMATION SYSTEM.—The term ‘Infor-
mation System’ means the National Health Informa-
tion System for Mothers and Children established
under section 2844.
‘‘(10) NATIONAL
CHILDHOOD
IMMUNIZATION
DATABASE.—The term ‘National Childhood Immuni-
zation Database’ means the electronic database es-
tablished under section 2845.
‘‘(11) PARTICIPATING STATE.—The term ‘par-
ticipating State’ means any of the 50 States, the
District of Columbia, Puerto Rico, and any of the
trust territories of the United States, that elects to
113
participate in the program established under this
title.
‘‘(12) POVERTY
LEVEL.—The term ‘poverty
level’ the income official poverty line (as defined by
the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)) applicable to a family of the size involved.
‘‘(13) TOBACCO ALTERNATIVES TRUST FUND.—
The term ‘Tobacco Alternatives Trust Fund’ means
the trust fund established under section 9512 of the
Internal Revenue Code of 1986.
‘‘(14) TRUST FUND.—The term ‘Trust Fund’
means the National Health Trust Fund for Mothers
and Children established under section 9551 of the
Internal Revenue Code of 1986.
‘‘SEC. 2872. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AVAILABILITY
OF
FUNDS
FROM
TRUST
FUND.—From the Trust Fund established under section
9551 of the Internal Revenue Code of 1986, there shall
be available such sums as may be necessary to carry out
this title in each fiscal year.
‘‘(b) HHS ACTIVITIES.—With respect to the develop-
ment and implementation of programs and activities re-
quired to be carried out by the Secretary under this title,
114
there are authorized to be appropriate such sums as may
be necessary for each of the fiscal years 1998 through
2002.
‘‘(c) JUSTICE ACTIVITIES.—With respect to the de-
velopment and implementation of programs and activities
required to be carried out by the Attorney General under
this title, there are authorized to be appropriate such sums
as may be necessary for each of the fiscal years 1998
through 2002.’’.
SEC. 207. UNLAWFUL USE OF TOBACCO PRODUCTS MANU-
FACTURED FOR EXPORT.
(a) DEFINITIONS.—Section 2341 of title 18, United
States Code, is amended—
(1) in paragraph (4), by striking ‘‘; and’’ and
inserting a semicolon;
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) the term ‘tobacco products’ has the mean-
ing given such term in section 5702(c) of the Inter-
nal Revenue Code of 1986.’’.
(b) UNLAWFUL ACTS.—Section 2342 of title 18,
United States Code, is amended by adding at the end the
following new subsection:
115
‘‘(c) It shall be unlawful for any person knowingly
to purchase, sell, distribute, or smuggle into the United
States, tobacco products that are designated for consump-
tion beyond the territorial jurisdiction of the internal reve-
nue laws of the United States.’’.
(c) PENALTY.—Section 2344 of title 18, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d)(1) Whoever knowingly violates section 2342(c)
shall be fined the greater of—
‘‘(A) $10,000; or
‘‘(B) an amount equal to 5 times the amount
of the tax imposed under section 5701 of the Inter-
nal Revenue Code of 1986,
which shall be deposited into the Fund created pursuant
to section 9512 of the Internal Revenue Code of 1986.
‘‘(2) A judgment for a violation of section 2342(c),
may, in addition to the penalty under paragraph (1), order
the confiscation of any equipment and vehicles, including
ships, aircraft, and motor vehicles, used to transport to-
bacco products in violation of such section. Any property
confiscated under this paragraph shall become the prop-
erty of the United States.’’.
116
TITLE III—FINANCING
PROVISIONS
SEC. 301. INCREASE IN TAXES ON TOBACCO PRODUCTS.
(a) ESTABLISHMENT OF INCREASE.—
(1) IN GENERAL.—Section 5701 of the Internal
Revenue Code of 1986 (relating to rate of tax on ci-
gars, smokeless tobacco, pipe tobacco, and cigarette
papers and tubes) is amended to read as follows:
‘‘SEC. 5701. RATE OF TAX.
‘‘(a) CIGARS.—On cigars manufactured in or im-
ported into the United States and removed during 1998,
there shall be imposed the following taxes:
‘‘(1) SMALL CIGARS.—On cigars weighing not
more than 3 pounds per thousand, $76.1325 per
thousand.
‘‘(2) LARGE CIGARS.—On cigars weighing more
than 3 pounds per thousand, 92.4375 percent of the
price for which sold but not more than $217.50 per
thousand.
Cigars not exempt from tax under this chapter which are
removed but not intended for sale shall be taxed at the
same rate as similar cigars removed for sale.
‘‘(b) CIGARETTES.—On cigarettes manufactured in
or imported into the United States and removed during
1998, there shall be imposed the following taxes:
117
‘‘(1) 
SMALL
CIGARETTES.—On 
cigarettes,
weighing not more than 3 pounds per thousand, $87
per thousand.
‘‘(2) LARGE CIGARETTES.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), on cigarettes, weighing more
than 3 pounds per thousand, $182.70 per thou-
sand.
‘‘(B) LONG CIGARETTES.—In the case of
cigarettes weighing more than 3 pounds per
thousand that are more than 61⁄2 inches in
length, such cigarettes shall be taxable at the
rate prescribed for cigarettes weighing not more
than 3 pounds per thousand, counting each 23⁄4
inches, or fraction thereof, of the length of each
as one cigarette.
‘‘(c) CIGARETTE PAPERS.—On each book or set of
cigarette papers containing more than 25 papers, manu-
factured in or imported into the United States and re-
moved during 1998, there shall be imposed a tax of 5.445
cents for each 50 papers or fractional part thereof (except
that if cigarette papers measure more than 61⁄2 inches,
such papers shall be taxable at the rate prescribed, count-
ing each 23⁄4 inches, or fraction thereof, of the length of
each as one cigarette paper).
118
‘‘(d) CIGARETTE TUBES.—On cigarette tubes, manu-
factured in or imported into the United States and re-
moved during 1998, there shall be imposed a tax of 10.89
cents for each 50 tubes or fractional part thereof, except
that if cigarette tubes measure more than 61⁄2 inches in
length, such tubes shall be taxable at the rate prescribed,
counting each 23⁄4 inches, or fraction thereof as the length
of each as one cigarette tube.
‘‘(e) SMOKELESS TOBACCO.—On smokeless tobacco,
manufactured in or imported into the United States and
removed during 1998, there shall be imposed the following
taxes:
‘‘(1) SNUFF.—On snuff, $20.355 per pound
and a proportionate tax at the like rate on all frac-
tional parts of a pound.
‘‘(2) CHEWING TOBACCO.—On chewing tobacco,
$8.115 per pound and a proportionate tax at the
like rate on all fractional parts of a pound.
‘‘(f) PIPE TOBACCO.—On pipe tobacco, manufac-
tured in or imported into the United States and removed
during 1998, there shall be imposed a tax of $25.6875
per pound and a proportionate tax at the like rate on all
fractional parts of a pound.
‘‘(g) ROLL-YOUR-OWN TOBACCO.—On roll-your-own
tobacco, manufactured in or imported into the United
119
States and removed during 1998, there shall be imposed
a tax of $26.025 per pound (and a proportionate tax at
the like rate on all fractional parts of a pound).
‘‘(h) DETERMINATION
OF TAX
IN YEARS AFTER
1998.—On all tobacco products, cigarette papers, and cig-
arette tubes removed after 1998, there shall be imposed
a tax equal to the tax imposed on such product during
1998 increased by an amount equal to—
‘‘(1) such dollar amount, multiplied by
‘‘(2) the cost of living adjustment determined
under section 1(f)(3) for the calendar year in which
the cigarettes are removed, by substituting ‘calendar
year 1997’ for ‘calendar year 1992’ in subparagraph
(B) thereof.
‘‘(i) DETERMINATION OF FLOOR STOCKS TAX IN IN-
CREASE YEARS.—
‘‘(1) IN GENERAL.—On all tobacco products,
cigarette papers, and cigarette tubes manufactured
in or imported into the United States which are re-
moved before January 1 of any increase year and
held on such date for sale by any person, there shall
be imposed a tax equal to the amount by which—
‘‘(A) the applicable tax on such product
determined under this section for such year, ex-
ceeds
120
‘‘(B) such applicable tax on such product
under this section for the preceding calendar
year.
‘‘(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
‘‘(A) LIABILITY FOR TAX.—A person hold-
ing tobacco products, cigarette papers, and cig-
arette tubes on January 1 of any increase year
to which any tax imposed by paragraph (1) ap-
plies shall be liable for such tax.
‘‘(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) or (2) shall be treated
as a tax imposed under subsection (a) through
(g) or subsection (h) of this section, as applica-
ble, and shall be due and payable on February
15 of each increase year in the same manner as
the tax imposed under such section is payable
with respect to tobacco products, cigarette pa-
pers, and cigarette tubes removed on or after
January 1 of such increase year.
‘‘(3) EXCEPTION
FOR
RETAIL
STOCKS.—The
taxes imposed by paragraph (1) shall not apply to
tobacco products, cigarette papers, and cigarette
tubes in retail stocks held on January 1 of any in-