173 
HR 1256 PCS 
letters and all text shall be in conspicuous and leg-
ible 17-point type, unless the text of the label state-
ment would occupy more than 70 percent of such 
area, in which case the text may be in a smaller con-
spicuous and legible type size, provided that at least 
60 percent of such area is occupied by required text. 
The text shall be black on a white background, or 
white on a black background, in a manner that con-
trasts, by typography, layout, or color, with all other 
printed material on the package, in an alternating 
fashion under the plan submitted under subsection 
(c). 
‘‘(3) DOES NOT APPLY TO FOREIGN DISTRIBU-
TION.—The provisions of this subsection do not 
apply to a tobacco product manufacturer or dis-
tributor of cigarettes which does not manufacture, 
package, or import cigarettes for sale or distribution 
within the United States. 
‘‘(4) APPLICABILITY TO RETAILERS.—A retailer 
of cigarettes shall not be in violation of this sub-
section for packaging that— 
‘‘(A) contains a warning label; 
‘‘(B) is supplied to the retailer by a 
license- or permit-holding tobacco product man-
ufacturer, importer, or distributor; and 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00173
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
174 
HR 1256 PCS 
‘‘(C) is not altered by the retailer in a way 
that is material to the requirements of this sub-
section. 
‘‘(b) ADVERTISING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—It shall be unlawful for any 
tobacco product manufacturer, importer, distributor, 
or retailer of cigarettes to advertise or cause to be 
advertised within the United States any cigarette 
unless its advertising bears, in accordance with the 
requirements of this section, one of the labels speci-
fied in subsection (a). 
‘‘(2) TYPOGRAPHY, ETC.—Each label statement 
required by subsection (a) in cigarette advertising 
shall comply with the standards set forth in this 
paragraph. For press and poster advertisements, 
each such statement and (where applicable) any re-
quired statement relating to tar, nicotine, or other 
constituent (including a smoke constituent) yield 
shall comprise at least 20 percent of the area of the 
advertisement and shall appear in a conspicuous and 
prominent format and location at the top of each ad-
vertisement within the trim area. The Secretary may 
revise the required type sizes in such area in such 
manner as the Secretary determines appropriate. 
The word ‘WARNING’ shall appear in capital let-
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00174
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
175 
HR 1256 PCS 
ters, and each label statement shall appear in con-
spicuous and legible type. The text of the label state-
ment shall be black if the background is white and 
white if the background is black, under the plan sub-
mitted under subsection (c). The label statements 
shall be enclosed by a rectangular border that is the 
same color as the letters of the statements and that 
is the width of the first downstroke of the capital 
‘W’ of the word ‘WARNING’ in the label state-
ments. The text of such label statements shall be in 
a typeface pro rata to the following requirements: 
45-point type for a whole-page broadsheet newspaper 
advertisement; 
39-point 
type 
for 
a 
half-page 
broadsheet newspaper advertisement; 39-point type 
for a whole-page tabloid newspaper advertisement; 
27-point type for a half-page tabloid newspaper ad-
vertisement; 31.5-point type for a double page 
spread magazine or whole-page magazine advertise-
ment; 22.5-point type for a 28 centimeter by 3 col-
umn advertisement; and 15-point type for a 20 cen-
timeter by 2 column advertisement. The label state-
ments shall be in English, except that— 
‘‘(A) in the case of an advertisement that 
appears in a newspaper, magazine, periodical, 
or other publication that is not in English, the 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00175
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
176 
HR 1256 PCS 
statements shall appear in the predominant lan-
guage of the publication; and 
‘‘(B) in the case of any other advertise-
ment that is not in English, the statements 
shall appear in the same language as that prin-
cipally used in the advertisement. 
‘‘(3) 
MATCHBOOKS.—Notwithstanding 
para-
graph (2), for matchbooks (defined as containing not 
more than 20 matches) customarily given away with 
the purchase of tobacco products, each label state-
ment required by subsection (a) may be printed on 
the inside cover of the matchbook. 
‘‘(4) ADJUSTMENT BY SECRETARY.—The Sec-
retary may, through a rulemaking under section 553 
of title 5, United States Code, adjust the format and 
type sizes for the label statements required by this 
section; the text, format, and type sizes of any re-
quired tar, nicotine yield, or other constituent (in-
cluding smoke constituent) disclosures; or the text, 
format, and type sizes for any other disclosures re-
quired under the Federal Food, Drug, and Cosmetic 
Act. The text of any such label statements or disclo-
sures shall be required to appear only within the 20 
percent area of cigarette advertisements provided by 
paragraph (2). The Secretary shall promulgate regu-
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00176
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
177 
HR 1256 PCS 
lations which provide for adjustments in the format 
and type sizes of any text required to appear in such 
area to ensure that the total text required to appear 
by law will fit within such area. 
‘‘(c) MARKETING REQUIREMENTS.— 
‘‘(1) RANDOM DISPLAY.—The label statements 
specified in subsection (a)(1) shall be randomly dis-
played in each 12-month period, in as equal a num-
ber of times as is possible on each brand of the 
product and be randomly distributed in all areas of 
the United States in which the product is marketed 
in accordance with a plan submitted by the tobacco 
product manufacturer, importer, distributor, or re-
tailer and approved by the Secretary. 
‘‘(2) ROTATION.—The label statements speci-
fied in subsection (a)(1) shall be rotated quarterly in 
alternating sequence in advertisements for each 
brand of cigarettes in accordance with a plan sub-
mitted by the tobacco product manufacturer, im-
porter, distributor, or retailer to, and approved by, 
the Secretary. 
‘‘(3) REVIEW.—The Secretary shall review each 
plan submitted under paragraph (2) and approve it 
if the plan— 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00177
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
178 
HR 1256 PCS 
‘‘(A) will provide for the equal distribution 
and display on packaging and the rotation re-
quired in advertising under this subsection; and 
‘‘(B) assures that all of the labels required 
under this section will be displayed by the to-
bacco product manufacturer, importer, dis-
tributor, or retailer at the same time. 
‘‘(4) APPLICABILITY TO RETAILERS.—This sub-
section and subsection (b) apply to a retailer only if 
that retailer is responsible for or directs the label 
statements required under this section except that 
this paragraph shall not relieve a retailer of liability 
if the retailer displays, in a location open to the pub-
lic, an advertisement that does not contain a warn-
ing label or has been altered by the retailer in a way 
that is material to the requirements of this sub-
section and subsection (b).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect 12 months after the date 
of enactment of this Act. Such effective date shall be with 
respect to the date of manufacture, provided that, in any 
case, beginning 30 days after such effective date, a manu-
facturer shall not introduce into the domestic commerce 
of the United States any product, irrespective of the date 
of manufacture, that is not in conformance with section 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00178
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
180 
HR 1256 PCS 
front and rear panels of the package, or establish the for-
mat, type size, and text of any other disclosures required 
under the Federal Food, Drug, and Cosmetic Act, if the 
Secretary finds that such a change would promote greater 
public understanding of the risks associated with the use 
of tobacco products.’’. 
SEC. 203. STATE REGULATION OF CIGARETTE ADVER-
TISING AND PROMOTION. 
Section 5 of the Federal Cigarette Labeling and Ad-
vertising Act (15 U.S.C. 1334) is amended by adding at 
the end the following: 
‘‘(c) EXCEPTION.—Notwithstanding subsection (b), a 
State or locality may enact statutes and promulgate regu-
lations, based on smoking and health, that take effect 
after the effective date of the Family Smoking Prevention 
and Tobacco Control Act, imposing specific bans or re-
strictions on the time, place, and manner, but not content, 
of the advertising or promotion of any cigarettes.’’. 
SEC. 204. SMOKELESS TOBACCO LABELS AND ADVERTISING 
WARNINGS. 
(a) AMENDMENT.—Section 3 of the Comprehensive 
Smokeless Tobacco Health Education Act of 1986 (15 
U.S.C. 4402) is amended to read as follows: 
‘‘SEC. 3. SMOKELESS TOBACCO WARNING. 
‘‘(a) GENERAL RULE.— 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00180
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
181 
HR 1256 PCS 
‘‘(1) It shall be unlawful for any person to man-
ufacture, package, sell, offer to sell, distribute, or 
import for sale or distribution within the United 
States any smokeless tobacco product unless the 
product package bears, in accordance with the re-
quirements of this Act, one of the following labels: 
‘‘WARNING: This product can cause 
mouth cancer. 
‘‘WARNING: This product can cause gum 
disease and tooth loss. 
‘‘WARNING: This product is not a safe al-
ternative to cigarettes. 
‘‘WARNING: Smokeless tobacco is addict-
ive. 
‘‘(2) Each label statement required by para-
graph (1) shall be— 
‘‘(A) located on the 2 principal display 
panels of the package, and each label statement 
shall comprise at least 30 percent of each such 
display panel; and 
‘‘(B) in 17-point conspicuous and legible 
type and in black text on a white background, 
or white text on a black background, in a man-
ner that contrasts by typography, layout, or 
color, with all other printed material on the 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00181
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
182 
HR 1256 PCS 
package, in an alternating fashion under the 
plan submitted under subsection (b)(3), except 
that if the text of a label statement would oc-
cupy more than 70 percent of the area specified 
by subparagraph (A), such text may appear in 
a smaller type size, so long as at least 60 per-
cent of such warning area is occupied by the 
label statement. 
‘‘(3) The label statements required by para-
graph (1) shall be introduced by each tobacco prod-
uct manufacturer, packager, importer, distributor, or 
retailer of smokeless tobacco products concurrently 
into the distribution chain of such products. 
‘‘(4) The provisions of this subsection do not 
apply to a tobacco product manufacturer or dis-
tributor of any smokeless tobacco product that does 
not manufacture, package, or import smokeless to-
bacco products for sale or distribution within the 
United States. 
‘‘(5) A retailer of smokeless tobacco products 
shall not be in violation of this subsection for pack-
aging that— 
‘‘(A) contains a warning label; 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00182
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
183 
HR 1256 PCS 
‘‘(B) is supplied to the retailer by a 
license- or permit-holding tobacco product man-
ufacturer, importer, or distributor; and 
‘‘(C) is not altered by the retailer in a way 
that is material to the requirements of this sub-
section. 
‘‘(b) REQUIRED LABELS.— 
‘‘(1) It shall be unlawful for any tobacco prod-
uct manufacturer, packager, importer, distributor, or 
retailer of smokeless tobacco products to advertise or 
cause to be advertised within the United States any 
smokeless tobacco product unless its advertising 
bears, in accordance with the requirements of this 
section, one of the labels specified in subsection (a). 
‘‘(2)(A) Each label statement required by sub-
section (a) in smokeless tobacco advertising shall 
comply with the standards set forth in this para-
graph. 
‘‘(B) For press and poster advertisements, each 
such statement and (where applicable) any required 
statement relating to tar, nicotine, or other con-
stituent yield shall comprise at least 20 percent of 
the area of the advertisement. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00183
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
184 
HR 1256 PCS 
‘‘(C) The word ‘WARNING’ shall appear in 
capital letters, and each label statement shall appear 
in conspicuous and legible type. 
‘‘(D) The text of the label statement shall be 
black on a white background, or white on a black 
background, in an alternating fashion under the 
plan submitted under paragraph (3). 
‘‘(E) The label statements shall be enclosed by 
a rectangular border that is the same color as the 
letters of the statements and that is the width of the 
first downstroke of the capital ‘W’ of the word 
‘WARNING’ in the label statements. 
‘‘(F) The text of such label statements shall be 
in a typeface pro rata to the following requirements: 
45-point type for a whole-page broadsheet newspaper 
advertisement; 
39-point 
type 
for 
a 
half-page 
broadsheet newspaper advertisement; 39-point type 
for a whole-page tabloid newspaper advertisement; 
27-point type for a half-page tabloid newspaper ad-
vertisement; 31.5-point type for a double page 
spread magazine or whole-page magazine advertise-
ment; 22.5-point type for a 28 centimeter by 3 col-
umn advertisement; and 15-point type for a 20 cen-
timeter by 2 column advertisement. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00184
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
185 
HR 1256 PCS 
‘‘(G) The label statements shall be in English, 
except that— 
‘‘(i) in the case of an advertisement that 
appears in a newspaper, magazine, periodical, 
or other publication that is not in English, the 
statements shall appear in the predominant lan-
guage of the publication; and 
‘‘(ii) in the case of any other advertisement 
that is not in English, the statements shall ap-
pear in the same language as that principally 
used in the advertisement. 
‘‘(3)(A) The label statements specified in sub-
section (a)(1) shall be randomly displayed in each 
12-month period, in as equal a number of times as 
is possible on each brand of the product and be ran-
domly distributed in all areas of the United States 
in which the product is marketed in accordance with 
a plan submitted by the tobacco product manufac-
turer, importer, distributor, or retailer and approved 
by the Secretary. 
‘‘(B) The label statements specified in sub-
section (a)(1) shall be rotated quarterly in alter-
nating sequence in advertisements for each brand of 
smokeless tobacco product in accordance with a plan 
submitted by the tobacco product manufacturer, im-
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00185
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
186 
HR 1256 PCS 
porter, distributor, or retailer to, and approved by, 
the Secretary. 
‘‘(C) The Secretary shall review each plan sub-
mitted under subparagraphs (A) and (B) and ap-
prove it if the plan— 
‘‘(i) will provide for the equal distribution 
and display on packaging and the rotation re-
quired in advertising under this subsection; and 
‘‘(ii) assures that all of the labels required 
under this section will be displayed by the to-
bacco product manufacturer, importer, dis-
tributor, or retailer at the same time. 
‘‘(D) This paragraph applies to a retailer only 
if that retailer is responsible for or directs the label 
statements under this section, unless the retailer dis-
plays, in a location open to the public, an advertise-
ment that does not contain a warning label or has 
been altered by the retailer in a way that is material 
to the requirements of this subsection. 
‘‘(4) The Secretary may, through a rulemaking 
under section 553 of title 5, United States Code, ad-
just the format and type sizes for the label state-
ments required by this section; the text, format, and 
type sizes of any required tar, nicotine yield, or 
other constituent disclosures; or the text, format, 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00186
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
187 
HR 1256 PCS 
and type sizes for any other disclosures required 
under the Federal Food, Drug, and Cosmetic Act. 
The text of any such label statements or disclosures 
shall be required to appear only within the 20 per-
cent area of advertisements provided by paragraph 
(2). The Secretary shall promulgate regulations 
which provide for adjustments in the format and 
type sizes of any text required to appear in such 
area to ensure that the total text required to appear 
by law will fit within such area. 
‘‘(c) TELEVISION AND RADIO ADVERTISING.—It is 
unlawful to advertise smokeless tobacco on any medium 
of electronic communications subject to the jurisdiction of 
the Federal Communications Commission.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect 12 months after the date 
of enactment of this Act. Such effective date shall be with 
respect to the date of manufacture, provided that, in any 
case, beginning 30 days after such effective date, a manu-
facturer shall not introduce into the domestic commerce 
of the United States any product, irrespective of the date 
of manufacture, that is not in conformance with section 
3 of the Comprehensive Smokeless Tobacco Health Edu-
cation Act of 1986 (15 U.S.C. 4402), as amended by sub-
section (a). 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00187
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
188 
HR 1256 PCS 
SEC. 205. AUTHORITY TO REVISE SMOKELESS TOBACCO 
PRODUCT WARNING LABEL STATEMENTS. 
(a) IN GENERAL.—Section 3 of the Comprehensive 
Smokeless Tobacco Health Education Act of 1986 (15 
U.S.C. 4402), as amended by section 204, is further 
amended by adding at the end the following: 
‘‘(d) AUTHORITY
TO
REVISE
WARNING
LABEL 
STATEMENTS.—The Secretary may, by a rulemaking con-
ducted under section 553 of title 5, United States Code, 
adjust the format, type size, and text of any of the label 
requirements, require color graphics to accompany the 
text, increase the required label area from 30 percent up 
to 50 percent of the front and rear panels of the package, 
or establish the format, type size, and text of any other 
disclosures required under the Federal Food, Drug, and 
Cosmetic Act, if the Secretary finds that such a change 
would promote greater public understanding of the risks 
associated with the use of smokeless tobacco products.’’. 
(b) PREEMPTION.—Section 7(a) of the Comprehen-
sive Smokeless Tobacco Health Education Act of 1986 (15 
U.S.C. 4406(a)) is amended by striking ‘‘No’’ and insert-
ing ‘‘Except as provided in the Family Smoking Preven-
tion and Tobacco Control Act (and the amendments made 
by that Act), no’’. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00188
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
189 
HR 1256 PCS 
SEC. 206. TAR, NICOTINE, AND OTHER SMOKE CON-
STITUENT DISCLOSURE TO THE PUBLIC. 
Section 4 of the Federal Cigarette Labeling and Ad-
vertising Act (15 U.S.C. 1333), as amended by sections 
201 and 202, is further amended by adding at the end 
the following: 
‘‘(e) TAR, NICOTINE, AND OTHER SMOKE CON-
STITUENT DISCLOSURE.— 
‘‘(1) IN GENERAL.—The Secretary shall, by a 
rulemaking conducted under section 553 of title 5, 
United States Code, determine (in the Secretary’s 
sole discretion) whether cigarette and other tobacco 
product manufacturers shall be required to include 
in the area of each cigarette advertisement specified 
by subsection (b) of this section, or on the package 
label, or both, the tar and nicotine yields of the ad-
vertised or packaged brand. Any such disclosure 
shall be in accordance with the methodology estab-
lished under such regulations, shall conform to the 
type size requirements of subsection (b) of this sec-
tion, and shall appear within the area specified in 
subsection (b) of this section. 
‘‘(2) RESOLUTION OF DIFFERENCES.—Any dif-
ferences between the requirements established by the 
Secretary under paragraph (1) and tar and nicotine 
yield reporting requirements established by the Fed-
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00189
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
190 
HR 1256 PCS 
eral Trade Commission shall be resolved by a memo-
randum of understanding between the Secretary and 
the Federal Trade Commission. 
‘‘(3) CIGARETTE AND OTHER TOBACCO PROD-
UCT CONSTITUENTS.—In addition to the disclosures 
required by paragraph (1), the Secretary may, under 
a rulemaking conducted under section 553 of title 5, 
United States Code, prescribe disclosure require-
ments regarding the level of any cigarette or other 
tobacco product constituent including any smoke 
constituent. Any such disclosure may be required if 
the Secretary determines that disclosure would be of 
benefit to the public health, or otherwise would in-
crease consumer awareness of the health con-
sequences of the use of tobacco products, except that 
no such prescribed disclosure shall be required on 
the face of any cigarette package or advertisement. 
Nothing in this section shall prohibit the Secretary 
from requiring such prescribed disclosure through a 
cigarette or other tobacco product package or adver-
tisement insert, or by any other means under the 
Federal Food, Drug, and Cosmetic Act. 
‘‘(4) RETAILERS.—This subsection applies to a 
retailer only if that retailer is responsible for or di-
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00190
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
191 
HR 1256 PCS 
rects the label statements required under this sec-
tion.’’. 
TITLE III—PREVENTION OF IL-
LICIT 
TRADE 
IN 
TOBACCO 
PRODUCTS 
SEC. 301. LABELING, RECORDKEEPING, RECORDS INSPEC-
TION. 
Chapter IX of the Federal Food, Drug, and Cosmetic 
Act, as added by section 101, is further amended by add-
ing at the end the following: 
‘‘SEC. 920. LABELING, RECORDKEEPING, RECORDS INSPEC-
TION. 
‘‘(a) ORIGIN LABELING.— 
‘‘(1) REQUIREMENT.—Beginning 1 year after 
the date of enactment of the Family Smoking Pre-
vention and Tobacco Control Act, the label, pack-
aging, and shipping containers of tobacco products 
for introduction or delivery for introduction into 
interstate commerce in the United States shall bear 
the statement ‘sale only allowed in the United 
States’. 
‘‘(2) EFFECTIVE
DATE.—The effective date 
specified in paragraph (1) shall be with respect to 
the date of manufacture, provided that, in any case, 
beginning 30 days after such effective date, a manu-
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00191
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
192 
HR 1256 PCS 
facturer shall not introduce into the domestic com-
merce of the United States any product, irrespective 
of the date of manufacture, that is not in conform-
ance with such paragraph. 
‘‘(b) REGULATIONS CONCERNING RECORDKEEPING 
FOR TRACKING AND TRACING.— 
‘‘(1) IN GENERAL.—The Secretary shall pro-
mulgate regulations regarding the establishment and 
maintenance of records by any person who manufac-
tures, processes, transports, distributes, receives, 
packages, holds, exports, or imports tobacco prod-
ucts. 
‘‘(2) INSPECTION.—In promulgating the regula-
tions described in paragraph (1), the Secretary shall 
consider which records are needed for inspection to 
monitor the movement of tobacco products from the 
point of manufacture through distribution to retail 
outlets to assist in investigating potential illicit 
trade, smuggling, or counterfeiting of tobacco prod-
ucts. 
‘‘(3) CODES.—The Secretary may require codes 
on the labels of tobacco products or other designs or 
devices for the purpose of tracking or tracing the to-
bacco product through the distribution system. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00192
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
193 
HR 1256 PCS 
‘‘(4) SIZE OF BUSINESS.—The Secretary shall 
take into account the size of a business in promul-
gating regulations under this section. 
‘‘(5) RECORDKEEPING
BY
RETAILERS.—The 
Secretary shall not require any retailer to maintain 
records relating to individual purchasers of tobacco 
products for personal consumption. 
‘‘(c) RECORDS INSPECTION.—If the Secretary has a 
reasonable belief that a tobacco product is part of an illicit 
trade or smuggling or is a counterfeit product, each person 
who manufactures, processes, transports, distributes, re-
ceives, holds, packages, exports, or imports tobacco prod-
ucts shall, at the request of an officer or employee duly 
designated by the Secretary, permit such officer or em-
ployee, at reasonable times and within reasonable limits 
and in a reasonable manner, upon the presentation of ap-
propriate credentials and a written notice to such person, 
to have access to and copy all records (including financial 
records) relating to such article that are needed to assist 
the Secretary in investigating potential illicit trade, smug-
gling, or counterfeiting of tobacco products. The Secretary 
shall not authorize an officer or employee of the govern-
ment of any of the several States to exercise authority 
under the preceding sentence on Indian country without 
the express written consent of the Indian tribe involved. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00193
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
194 
HR 1256 PCS 
‘‘(d) KNOWLEDGE OF ILLEGAL TRANSACTION.— 
‘‘(1) NOTIFICATION.—If the manufacturer or 
distributor of a tobacco product has knowledge 
which reasonably supports the conclusion that a to-
bacco product manufactured or distributed by such 
manufacturer or distributor that has left the control 
of such person may be or has been— 
‘‘(A) imported, exported, distributed, or of-
fered for sale in interstate commerce by a per-
son without paying duties or taxes required by 
law; or 
‘‘(B) imported, exported, distributed, or di-
verted for possible illicit marketing, 
the manufacturer or distributor shall promptly no-
tify the Attorney General and the Secretary of the 
Treasury of such knowledge. 
‘‘(2) KNOWLEDGE DEFINED.—For purposes of 
this subsection, the term ‘knowledge’ as applied to 
a manufacturer or distributor means— 
‘‘(A) the actual knowledge that the manu-
facturer or distributor had; or 
‘‘(B) the knowledge which a reasonable 
person would have had under like circumstances 
or which would have been obtained upon the ex-
ercise of due care. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00194
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
195 
HR 1256 PCS 
‘‘(e) CONSULTATION.—In carrying out this section, 
the Secretary shall consult with the Attorney General of 
the United States and the Secretary of the Treasury, as 
appropriate.’’. 
SEC. 302. STUDY AND REPORT. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of cross-border trade in to-
bacco products to— 
(1) collect data on cross-border trade in tobacco 
products, including illicit trade and trade of counter-
feit tobacco products and make recommendations on 
the monitoring of such trade; 
(2) collect data on cross-border advertising (any 
advertising intended to be broadcast, transmitted, or 
distributed from the United States to another coun-
try) of tobacco products and make recommendations 
on how to prevent or eliminate, and what tech-
nologies could help facilitate the elimination of, 
cross-border advertising; and 
(3) collect data on the health effects (particu-
larly with respect to individuals under 18 years of 
age) resulting from cross-border trade in tobacco 
products, including the health effects resulting 
from— 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00195
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
196 
HR 1256 PCS 
(A) the illicit trade of tobacco products 
and the trade of counterfeit tobacco products; 
and 
(B) the differing tax rates applicable to to-
bacco products. 
(b) REPORT.—Not later than 18 months after the 
date of enactment of this Act, the Comptroller General 
of the United States shall submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and 
the Committee on Energy and Commerce of the House 
of Representatives a report on the study described in sub-
section (a). 
(c) DEFINITION.—In this section: 
(1) The term ‘‘cross-border trade’’ means trade 
across a border of the United States, a State or Ter-
ritory, or Indian country. 
(2) The term ‘‘Indian country’’ has the mean-
ing given to such term in section 1151 of title 18, 
United States Code. 
(3) The terms ‘‘State’’ and ‘‘Territory’’ have 
the meanings given to those terms in section 201 of 
the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 321). 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00196
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
197 
HR 1256 PCS 
DIVISION B—FEDERAL 
RETIREMENT REFORM ACT 
SEC. 100. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Federal Retirement Reform Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
DIVISION B—FEDERAL RETIREMENT REFORM ACT 
Sec. 100. Short title; table of contents. 
TITLE I—PROVISIONS RELATING TO FEDERAL EMPLOYEES 
RETIREMENT 
Subtitle A—Thrift Savings Plan Enhancement 
Sec. 101. Short title. 
Sec. 102. Automatic enrollments. 
Sec. 103. Qualified Roth contribution program. 
Sec. 104. Authority to establish self-directed investment window. 
Sec. 105. Reporting requirements. 
Sec. 106. Acknowledgement of risk. 
Subtitle B—Other Retirement-Related Provisions 
Sec. 111. Credit for unused sick leave. 
Sec. 112. Exemption of certain CSRS repayments from the requirement that 
they be made with interest. 
Sec. 113. Computation of certain annuities based on part-time service. 
Sec. 114. Treatment of members of the uniformed services under the Thrift 
Savings Plan. 
Sec. 115. Authority to deposit refunds under FERS. 
Sec. 116. Retirement credit for service of certain employees transferred from 
District of Columbia service to Federal service. 
TITLE II—SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR 
SURVIVING SPOUSES OF ARMED FORCES MEMBERS 
Sec. 201. Increase in monthly amount of special survivor indemnity allowance 
for widows and widowers of deceased members of the Armed 
Forces affected by required Survivor Benefit Plan annuity off-
set for dependency and indemnity compensation. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00197
Fmt 6652
Sfmt 6211
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
198 
HR 1256 PCS 
TITLE I—PROVISIONS RELATING 
TO FEDERAL EMPLOYEES RE-
TIREMENT 
Subtitle A—Thrift Savings Plan 
Enhancement 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Thrift Savings 
Plan Enhancement Act of 2009’’. 
SEC. 102. AUTOMATIC ENROLLMENTS. 
(a) IN GENERAL.—Section 8432(b) of title 5, United 
States Code, is amended by striking paragraphs (2) 
through (4) and inserting the following: 
‘‘(2)(A) The Board shall by regulation provide for an 
eligible individual to be automatically enrolled to make 
contributions under subsection (a) at the default percent-
age of basic pay. 
‘‘(B) For purposes of this paragraph, the default per-
centage shall be equal to 3 percent or such other percent-
age, not less than 2 percent nor more than 5 percent, as 
the Board may by regulation prescribe. 
‘‘(C) The regulations shall include provisions under 
which any individual who would otherwise be automatically 
enrolled in accordance with subparagraph (A) may— 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00198
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
199 
HR 1256 PCS 
‘‘(i) modify the percentage or amount to be con-
tributed pursuant to automatic enrollment, effective 
from the start of such enrollment; or 
‘‘(ii) decline automatic enrollment altogether. 
‘‘(D) For purposes of this paragraph, the term ‘eligi-
ble individual’ means any individual who, after any regula-
tions under subparagraph (A) first take effect, is ap-
pointed, transferred, or reappointed to a position in which 
that individual is eligible to contribute to the Thrift Sav-
ings Fund. 
‘‘(E)(i) Subject to clause (ii), sections 8351(a)(1), 
8440a(a)(1), 8440b(a)(1), 8440c(a)(1), 8440d(a)(1), and 
8440e(a)(1) shall be applied in a manner consistent with 
the purposes of this paragraph. 
‘‘(ii) The Secretary concerned may, with respect to 
members of the uniformed services under the authority of 
such Secretary, establish such special rules as such Sec-
retary considers necessary for the administration of this 
subparagraph, including rules in accordance with which 
such Secretary may— 
‘‘(I) provide for delayed automatic enrollment; 
or 
‘‘(II) preclude or suspend the application of 
automatic enrollment.’’. 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00199
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
200 
HR 1256 PCS 
(b) TECHNICAL AMENDMENT.—Section 8432(b)(1) 
of title 5, United States Code, is amended by striking the 
parenthetical matter in subparagraph (B). 
SEC. 103. QUALIFIED ROTH CONTRIBUTION PROGRAM. 
(a) IN GENERAL.—Subchapter III of chapter 84 of 
title 5, United States Code, is amended by inserting after 
section 8432c the following: 
‘‘§ 8432d. Qualified Roth contribution program 
‘‘(a) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘qualified Roth contribution pro-
gram’ means a program described in paragraph (1) 
of section 402A(b) of the Internal Revenue Code of 
1986 which meets the requirements of paragraph (2) 
of such section; and 
‘‘(2) the terms ‘designated Roth contribution’ 
and ‘elective deferral’ have the meanings given such 
terms in section 402A of the Internal Revenue Code 
of 1986. 
‘‘(b) AUTHORITY TO ESTABLISH.—The Board shall 
by regulation provide for the inclusion in the Thrift Sav-
ings Plan of a qualified Roth contribution program, under 
such terms and conditions as the Board may prescribe. 
‘‘(c) REQUIRED PROVISIONS.—The regulations under 
subsection (b) shall include— 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00200
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
201 
HR 1256 PCS 
‘‘(1) provisions under which an election to make 
designated Roth contributions may be made— 
‘‘(A) by any individual who is eligible to 
make 
contributions 
under 
section 
8351, 
8432(a), 8440a, 8440b, 8440c, 8440d, or 
8440e; and 
‘‘(B) by any individual, not described in 
subparagraph (A), who is otherwise eligible to 
make elective deferrals under the Thrift Sav-
ings Plan; 
‘‘(2) any provisions which may, as a result of 
enactment of this section, be necessary in order to 
clarify the meaning of any reference to an ‘account’ 
made in section 8432(f), 8433, 8434(d), 8435, 
8437, or any other provision of law; and 
‘‘(3) any other provisions which may be nec-
essary to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 84 of title 5, United States Code, is amended by insert-
ing after the item relating to section 8432c the following: 
‘‘8432d. Qualified Roth contribution program.’’. 
SEC. 104. AUTHORITY TO ESTABLISH SELF-DIRECTED IN-
VESTMENT WINDOW. 
(a) IN GENERAL.—Section 8438(b)(1) of title 5, 
United States Code, is amended— 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00201
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS
203 
HR 1256 PCS 
dow are borne solely by the participants who use such win-
dow. 
‘‘(D) The Board may establish such other terms and 
conditions for the self-directed investment window as the 
Board considers appropriate to protect the interests of 
participants, including requirements relating to risk dis-
closure. 
‘‘(E) The Board shall consult with the Employee 
Thrift Advisory Council (established under section 8473) 
before establishing any self-directed investment window.’’. 
SEC. 105. REPORTING REQUIREMENTS. 
(a) ANNUAL REPORT.—The Board shall, not later 
than June 30 of each year, submit to Congress an annual 
report on the operations of the Thrift Savings Plan. Such 
report shall include, for the prior calendar year, informa-
tion on the number of participants as of the last day of 
such prior calendar year, the median balance in partici-
pants’ accounts as of such last day, demographic informa-
tion on participants, the percentage allocation of amounts 
among investment funds or options, the status of the de-
velopment and implementation of the self-directed invest-
ment window, the diversity demographics of any company, 
investment adviser, or other entity retained to invest and 
manage the assets of the Thrift Savings Fund, and such 
other information as the Board considers appropriate. A 
VerDate Nov 24 2008 
01:30 Apr 21, 2009
Jkt 079200
PO 00000
Frm 00203
Fmt 6652
Sfmt 6201
E:\BILLS\H1256.PCS
H1256
jbell on PROD1PC69 with BILLS