stamp, impression, or other indication to be 
placed on packages or other containers of prod-
uct to evidence payment of tobacco taxes, such 
tobacco product bears no evidence of such pay-
ment; or 
‘‘(ii) if such State or other such jurisdic-
tion has no such requirement, applicable to-
bacco taxes are found to be not paid; and 
‘‘(G) such tobacco product is in the posses-
sion of any person other than— 
‘‘(i) a person holding a permit issued 
pursuant to chapter 52 of the Internal 
Revenue Code of 1986 as a manufacturer 
or importer of tobacco products or as an 
export warehouse proprietor, or a person 
operating a customs bonded warehouse 
pursuant to section 311 or 555 of the Tar-
iff Act of 1930 (19 U.S.C. 1311 or 1555) 
or an agent of such person; 
‘‘(ii) a common or contract carrier 
transporting the tobacco product involved 
under a proper bill of lading or freight bill 
which states the quantity, source, and des-
tination of such product; 
‘‘(iii) a person— 
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‘‘(I) who is licensed or otherwise 
authorized by the State where the to-
bacco product is found to account for 
and pay tobacco taxes imposed by 
such State; and 
‘‘(II) who has complied with the 
accounting and payment requirements 
relating to such license or authoriza-
tion with respect to the tobacco prod-
uct involved; or 
‘‘(iv) an officer, employee, or other 
agent of the United States or a State, or 
any department, agency, or instrumentality 
of the United States or a State (including 
any political subdivision of a State) having 
possession of such tobacco product in con-
nection with the performance of official du-
ties;’’. 
(2) CIGARETTES.—Section 2341 of title 18, 
United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(8) the term ‘cigarette’ has the meaning given 
such term by section 5702 of the Internal Revenue 
Code of 1986.’’. 
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(3) CONFORMING AMENDMENTS.—Section 2341 
of title 18, United States Code, as amended by para-
graph (2), is amended— 
(A) by inserting ‘‘and’’ at the end of para-
graph (5); 
(B) by striking paragraphs (6) and (7); 
and 
(C) by redesignating paragraph (8) as 
paragraph (6). 
(b) PROVISIONS RELATING TO UNLAWFUL ACTS.— 
Section 2342 of title 18, United States Code, is amended 
to read as follows: 
‘‘§ 2342. Unlawful acts 
‘‘(a) It shall be unlawful for any person knowingly 
to ship, transport, receive, possess, sell, distribute, or pur-
chase contraband tobacco products. 
‘‘(b) It shall be unlawful for any person knowingly— 
‘‘(1) to make any false statement or representa-
tion with respect to the information required by this 
chapter to be kept in the records or reports of any 
person who ships, sells, or distributes (in a single 
transaction or in a series of related transactions) 
any quantity of tobacco product in excess of the 
quantity specified in or pursuant to section 
2341(2)(A) with respect to such product; or 
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‘‘(2) to fail to maintain records or reports, alter 
or obliterate required markings, or interfere with 
any inspection, required under this chapter, with re-
spect to such quantity of tobacco product. 
‘‘(c) It shall be unlawful for any person knowingly 
to transport tobacco products under a false bill of lading 
or without any bill of lading.’’. 
(c) PROVISIONS RELATING TO RECORDKEEPING, RE-
PORTING, AND INSPECTION REQUIREMENTS.— 
(1) IN
GENERAL.—Section 2343 of title 18, 
United States Code, is amended— 
(A) in subsection (a), by striking ‘‘any 
quantity of cigarettes in excess of 10,000, or’’ 
and all that follows through ‘‘cans or packages, 
in a single transaction’’ and inserting ‘‘(in a 
single transaction or in a series of related 
transactions) any quantity of tobacco product in 
excess of the quantity specified in or pursuant 
to section 2341(2)(A) with respect to such 
product’’; 
(B) in subsection (b), by striking ‘‘any 
quantity in excess of 10,000 cigarettes, or’’ and 
all that follows through ‘‘smokeless tobacco, or 
their equivalent’’ and inserting ‘‘any quantity of 
tobacco product in excess of the quantity speci-
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fied in or pursuant to section 2341(2)(A) with 
respect to such product’’; and 
(C) in subsection (c), by striking ‘‘any 
quantity of cigarettes in excess of 10,000 in a 
single transaction’’ and inserting ‘‘(in a single 
transaction or in a series of related trans-
actions) any quantity of tobacco product in ex-
cess of the quantity specified in or pursuant to 
section 2341(2)(A) with respect to such prod-
uct’’. 
(2) CONFORMING AMENDMENTS.—Section 2343 
of title 18, United States Code, as amended by para-
graph (1) of this subsection, is amended— 
(A) in paragraph (2) of subsection (e), by 
striking ‘‘are’’ and inserting ‘‘is’’; and 
(B) by striking— 
(i) ‘‘cigarettes’’ each place it appears 
in subsections (a) and (c); 
(ii) ‘‘cigarettes and cans or packages 
of smokeless tobacco’’ each place it ap-
pears in subsection (b); and 
(iii) ‘‘cigarettes or smokeless tobacco’’ 
each place it appears in subsection (e); 
and inserting ‘‘tobacco product’’. 
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(d) PROVISIONS RELATING TO MACHINES USED TO 
MANUFACTURE OR PACKAGE CIGARETTES OR OTHER TO-
BACCO PRODUCTS.—Chapter 114 of title 18, United State 
Code, is amended by inserting after section 2343 the fol-
lowing: 
‘‘§ 2343A. Machines used to manufacture or package 
cigarettes or other tobacco products 
‘‘(a) Any machine used to manufacture or package 
tobacco products shall be sold, leased, or delivered only 
to persons lawfully engaged in the sale, lease, or delivery 
of such machines or lawfully engaged in the manufacture 
of tobacco products, and that have all permits or licenses 
required to engage in such activities by the laws of the 
country and other jurisdictions where the person is lo-
cated. 
‘‘(b) Any machine used to apply or affix tax stamps, 
meter impressions, or other tax-payment indicia to pack-
ages of tobacco products shall be sold, leased, or delivered 
only to persons lawfully engaged in the sale, lease, or deliv-
ery of such machines or lawfully engaged in the applica-
tion of such stamps, meter impressions or other tax-pay-
ment indicia onto tobacco product packages, and that have 
all permits or licenses required to engage in such activities 
by the laws of the country and other jurisdictions where 
the person is located. 
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‘‘(c) No machine used in the manufacture or pack-
aging of tobacco products or in the application of tax 
stamps, meter impressions, or other tax-payment indicia 
to packages of tobacco products shall knowingly be manu-
factured for or be sold, leased, delivered, directly or indi-
rectly, or otherwise made available to any person engaged 
in the manufacture, distribution or sale of counterfeit or 
contraband tobacco products or counterfeit tax stamps, 
meter impressions, or other tax-payment indicia. 
‘‘(d) Any machine used to manufacture or package 
tobacco products or to apply or affix tax stamps, meter 
impressions, or other tax-payment indicia to packages of 
tobacco products that is no longer being used or offered 
for that purpose shall be made irreparably inoperable for 
those purposes before being disposed of or put to any 
other use. This paragraph shall not apply to any such ma-
chines being kept solely for display or for historical pur-
poses. 
‘‘(e) Any person manufacturing, selling, leasing, de-
livering, or disposing of a machine used to manufacture 
or package tobacco products or to apply or affix tax 
stamps, meter impressions, or other tax-payment indicia 
to packages of tobacco products shall maintain and keep 
records relating to any transfers of deliveries of the ma-
chine, including the name, address, and other contact in-
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formation of any person ordering, buying, leasing, or re-
ceiving delivery of the machine. Such reports shall be 
made available to the Secretary and other federal and 
state government law enforcement officials for inspection 
and audit upon request. An ordinary commercial record 
or invoice shall satisfy the requirements of this subsection 
if such record describes the transaction and the related 
machine and provides the date of the transaction and the 
name and contact information of all persons parties to the 
transaction or acting as agents for those parties in regard 
to the transaction. 
‘‘(f) This section shall not apply to machines meant 
and expected for use only by individual consumers of to-
bacco products for personal use.’’. 
(e) PROVISIONS RELATING TO PENALTIES.—Section 
2344 of title 18, United States Code, is amended— 
(1) in subsection (a), by inserting ‘‘or sub-
section (a), (b), or (c) of section 2343A’’ after ‘‘sec-
tion 2342(a)’’, and 
(2) in subsection (b), by striking ‘‘section 
2342(b)’’ and inserting ‘‘subsection (b) or (c) of sec-
tion 2342 or subsection (d) or (e) of section 
2343A’’. 
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(f) PROVISIONS RELATING TO EFFECT ON STATE 
AND LOCAL LAW.—Section 2345 of title 18, United States 
Code, is amended— 
(1) by striking ‘‘cigarette tax laws’’ each place 
it appears and inserting ‘‘tobacco product tax laws’’; 
and 
(2) by striking ‘‘cigarettes or smokeless to-
bacco’’ and inserting ‘‘tobacco products’’. 
(g) CLERICAL AMENDMENTS.—(1) The heading for 
chapter 114 of title 18, United States Code, is amended 
to read as follows: 
‘‘CHAPTER 114—TRAFFICKING IN 
CONTRABAND TOBACCO PRODUCTS’’. 
(2) The table of chapters at the beginning of part 
I of title 18, United States Code, is amended by striking 
the item relating to section 114 and inserting the following 
new item: 
‘‘114. Trafficking in contraband tobacco products ............... 2341’’. 
(3) The table of sections for chapter 114 of title 18, 
United States Code, is amended by inserting after the 
item relating to section 2343 the following new item: 
‘‘2343A. Machines used to manufacture or package cigarettes or other tobacco 
products.’’. 
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SEC. 202. CREATING RIGHT OF ACTION FOR STATE TO-
BACCO TAX ADMINISTRATOR FOR FAILURE 
TO REPORT. 
(a) IN GENERAL.—(1) Section 4 of the Act of Octo-
ber 19, 1949 (15 U.S.C. 378) is amended by adding at 
the end the following: ‘‘A State tobacco tax administrator 
may commence a civil action to obtain appropriate relief 
with respect to a violation of this Act.’’. 
(2) Section 1 of such Act is amended by striking 
paragraph (2) and inserting following new paragraph: 
‘‘(2) The term ‘tobacco product’ has the mean-
ing given to such term by section 5702 of the Inter-
nal Revenue Code of 1986.’’. 
(b) CONFORMING AMENDMENT.—Such Act is further 
amended by striking ‘‘cigarette’’ and ‘‘cigarettes’’ each 
place either appears and inserting ‘‘tobacco product’’ and 
‘‘tobacco products’’, respectively. 
TITLE III—WHISTLEBLOWER 
PROTECTION PROVISIONS 
SEC. 301. WHISTLEBLOWER PROTECTION. 
(a) IN GENERAL.—Chapter 73 of title 18, United 
States Code, is amended by inserting after section 1514A 
the following: 
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‘‘§ 1514B. Civil action to protect against retaliation in 
contraband tobacco cases 
‘‘(a) WHISTLEBLOWER PROTECTION FOR CONTRA-
BAND TOBACCO.—No person may discharge, demote, sus-
pend, threaten, harass, or in any other manner discrimi-
nate against an employee in the terms and conditions of 
employment because of any lawful act done by the em-
ployee— 
‘‘(1) to provide information, cause information 
to be provided, or otherwise assist in an investiga-
tion regarding any conduct which the employee rea-
sonably believes constitutes a violation of section 
2342 or any other provision of Federal law relating 
to contraband tobacco, when the information or as-
sistance is provided to or the investigation is con-
ducted by— 
‘‘(A) a Federal regulatory or law enforce-
ment agency; 
‘‘(B) any Member of Congress or any com-
mittee of Congress; or 
‘‘(C) a person with supervisory authority 
over the employee (or such other person work-
ing for the employer who has the authority to 
investigate, discover, or terminate misconduct); 
or 
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‘‘(2) to file, cause to be filed, testify, participate 
in, or otherwise assist in a proceeding filed or about 
to be filed (with any knowledge of the employer) re-
lating to an alleged violation of section 2342, or any 
provision of Federal law relating to contraband to-
bacco. 
‘‘(b) ENFORCEMENT ACTION.— 
‘‘(1) IN GENERAL.—A person who alleges dis-
charge or other discrimination by any person in vio-
lation of subsection (a) may seek relief under sub-
section (c), by— 
‘‘(A) filing a complaint with the Secretary 
of Labor; or 
‘‘(B) if the Secretary has not issued a final 
decision within 180 days of the filing of the 
complaint and there is no showing that such 
delay is due to the bad faith of the claimant, 
bringing an action at law or equity for de novo 
review in the appropriate district court of the 
United States, which shall have jurisdiction 
over such an action without regard to the 
amount in controversy. 
‘‘(2) PROCEDURE.— 
‘‘(A) IN GENERAL.—An action under para-
graph (1)(A) shall be governed under the rules 
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and procedures set forth in section 42121(b) of 
title 49, United States Code. 
‘‘(B) 
EXCEPTION.—Notification 
made 
under section 42121(b)(1) of title 49, United 
States Code, shall be made to the person named 
in the complaint and to the employer. 
‘‘(C) BURDENS
OF
PROOF.—An action 
brought under paragraph (1)(B) shall be gov-
erned by the legal burdens of proof set forth in 
section 42121(b) of title 49, United States 
Code. 
‘‘(D) STATUTE OF LIMITATIONS.—An ac-
tion under paragraph (1) shall be commenced 
not later than 90 days after the date on which 
the violation occurs. 
‘‘(c) REMEDIES.— 
‘‘(1) IN GENERAL.—An employee prevailing in 
any action under subsection (b)(1) shall be entitled 
to all relief necessary to make the employee whole. 
‘‘(2) COMPENSATORY DAMAGES.—Relief for any 
action under paragraph (1) shall include— 
‘‘(A) reinstatement with the same seniority 
status that the employee would have had, but 
for the discrimination; 
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