245 
‘‘(4) USE
OF
PREPAYMENT.—The Combined 
Fund shall— 
‘‘(A) establish and maintain an account for 
each assigned operator or related person by, or 
on whose behalf, a payment described in para-
graph (3) was made, 
‘‘(B) credit such account with such pay-
ment (and any earnings thereon), and 
‘‘(C) use all amounts in such account ex-
clusively to pay premiums that would (but for 
this subsection) be required to be paid by the 
assigned operator. 
Upon termination of the obligations for the premium 
liability of any assigned operator or related person 
for which such account is maintained, all funds re-
maining in such account (and earnings thereon) 
shall be refunded to such person as may be des-
ignated by the common parent described in para-
graph (1)(B).’’. 
(b) 
INDIVIDUAL
EMPLOYER
PLANS.—Section 
9711(c) of the Internal Revenue Code of 1986 (relating 
to joint and several liability) is amended to read as follows: 
‘‘(c) JOINT AND SEVERAL LIABILITY OF RELATED 
PERSONS.— 
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246 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), each related person of a last signatory op-
erator to which subsection (a) or (b) applies shall be 
jointly and severally liable with the last signatory op-
erator for the provision of health care coverage de-
scribed in subsection (a) or (b). 
‘‘(2) LIABILITY
LIMITED
IF
SECURITY
PRO-
VIDED.—If— 
‘‘(A) security meeting the requirements of 
paragraph (3) is provided by or on behalf of— 
‘‘(i) any last signatory operator which 
is an assigned operator described in section 
9704(j)(2), or 
‘‘(ii) any related person to any last 
signatory operator described in clause (i), 
and 
‘‘(B) the common parent of the controlled 
group of corporations described in section 
9704(j)(2)(B) is jointly and severally liable for 
the provision of health care under this section 
which, but for this paragraph, would be re-
quired to be provided by the last signatory op-
erator or related person, 
then, as of the date the security is provided, such 
common parent (and no other person) shall be liable 
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247 
for the provision of health care under this section 
which the last signatory operator or related person 
would otherwise be required to provide. Security may 
be provided under this paragraph without regard to 
whether a payment was made under section 9704(j). 
‘‘(3) SECURITY.—Security meets the require-
ments of this paragraph if— 
‘‘(A) the security— 
‘‘(i) is in the form of a bond, letter of 
credit, or cash escrow, 
‘‘(ii) is provided to the trustees of the 
1992 UMWA Benefit Plan solely for the 
purpose of paying premiums for bene-
ficiaries who would be described in section 
9712(b)(2)(B) if the requirements of this 
section were not met by the last signatory 
operator, and 
‘‘(iii) is in an amount equal to 1 year 
of liability of the last signatory operator 
under this section, determined by using the 
average cost of such operator’s liability 
during the prior 3 calendar years; 
‘‘(B) the security is in addition to any 
other security required under any other provi-
sion of this title; and 
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248 
‘‘(C) the security remains in place for 5 
years. 
‘‘(4) REFUNDS OF SECURITY.—The remaining 
amount of any security provided under this sub-
section (and earnings thereon) shall be refunded to 
the last signatory operator as of the earlier of— 
‘‘(A) the termination of the obligations of 
the last signatory operator under this section, 
or 
‘‘(B) the end of the 5-year period described 
in paragraph (4)(C).’’. 
(c) 
1992 
UMWA 
BENEFIT
PLAN.—Section 
9712(d)(4) of the Internal Revenue Code of 1986 (relating 
to joint and several liability) is amended by adding at the 
end the following new sentence: ‘‘The provisions of section 
9711(c)(2) shall apply to any last signatory operator de-
scribed in such section (without regard to whether security 
is provided under such section, a payment is made under 
section 9704(j), or both) and if security meeting the re-
quirements of section 9711(c)(3) is provided, the common 
parent described in section 9711(c)(2)(B) shall be exclu-
sively responsible for any liability for premiums under this 
section which, but for this sentence, would be required to 
be paid by the last signatory operator or any related per-
son.’’. 
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249 
(d) SUCCESSOR IN INTEREST.—Section 9701(c) of 
the Internal Revenue Code of 1986 (relating to terms re-
lating to operators) is amended by adding at the end the 
following new paragraph: 
‘‘(8) SUCCESSOR IN INTEREST.— 
‘‘(A) SAFE HARBOR.—The term ‘successor 
in interest’ shall not include any person who— 
‘‘(i) is an unrelated person to an eligi-
ble seller described in subparagraph (C); 
and 
‘‘(ii) purchases for fair market value 
assets, or all of the stock, of a related per-
son to such seller, in a bona fide, arm’s- 
length sale. 
‘‘(B) UNRELATED
PERSON.—The term 
‘unrelated person’ means a purchaser who does 
not bear a relationship to the eligible seller de-
scribed in section 267(b). 
‘‘(C) ELIGIBLE SELLER.—For purposes of 
this paragraph, the term ‘eligible seller’ means 
an assigned operator described in section 
9704(j)(2) or a related person to such assigned 
operator.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
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250 
of this Act, except that the amendment made by sub-
section (d) shall apply to transactions after the date of 
the enactment of this Act. 
SEC. 212. TRANSFERS TO FUNDS; PREMIUM RELIEF. 
(a) COMBINED FUND.— 
(1) FEDERAL TRANSFERS.—Section 9705(b) of 
the Internal Revenue Code of 1986 (relating to 
transfers from Abandoned Mine Reclamation Fund) 
is amended— 
(A) in paragraph (1), by striking ‘‘section 
402(h)’’ and inserting ‘‘subsections (h) and (i) 
of section 402’’; 
(B) by striking paragraph (2) and insert-
ing the following new paragraph: 
‘‘(2) USE OF FUNDS.—Any amount transferred 
under paragraph (1) for any fiscal year shall be used 
to pay benefits and administrative costs of bene-
ficiaries of the Combined Fund or for such other 
purposes as are specifically provided in the Acts de-
scribed in paragraph (1).’’; and 
(C) by striking ‘‘FROM ABANDONED MINE 
RECLAMATION FUND’’ in the heading thereof. 
(2) MODIFICATIONS OF PREMIUMS TO REFLECT 
FEDERAL TRANSFERS.— 
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251 
(A) ELIMINATION OF UNASSIGNED BENE-
FICIARIES PREMIUM.—Section 9704(d) of such 
Code (establishing unassigned beneficiaries pre-
mium) is amended to read as follows: 
‘‘(d) UNASSIGNED BENEFICIARIES PREMIUM.— 
‘‘(1) PLAN YEARS ENDING ON OR BEFORE SEP-
TEMBER 30, 2006.—For plan years ending on or be-
fore September 30, 2006, the unassigned bene-
ficiaries premium for any assigned operator shall be 
equal to the applicable percentage of the product of 
the per beneficiary premium for the plan year multi-
plied by the number of eligible beneficiaries who are 
not assigned under section 9706 to any person for 
such plan year. 
‘‘(2) PLAN YEARS BEGINNING ON OR AFTER OC-
TOBER 1, 2006.— 
‘‘(A) IN GENERAL.—For plan years begin-
ning on or after October 1, 2006, subject to 
subparagraph (B), there shall be no unassigned 
beneficiaries premium, and benefit costs with 
respect to eligible beneficiaries who are not as-
signed under section 9706 to any person for 
any such plan year shall be paid from amounts 
transferred under section 9705(b). 
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252 
‘‘(B) INADEQUATE
TRANSFERS.—If, for 
any plan year beginning on or after October 1, 
2006, the amounts transferred under section 
9705(b) are less than the amounts required to 
be transferred to the Combined Fund under 
subsection (h)(2)(A) or (i) of section 402 of the 
Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1232)), then the unassigned 
beneficiaries premium for any assigned operator 
shall be equal to the operator’s applicable per-
centage of the amount required to be so trans-
ferred which was not so transferred.’’. 
(B) PREMIUM ACCOUNTS.— 
(i) CREDITING
OF
ACCOUNTS.—Sec-
tion 9704(e)(1) of such Code (relating to 
premium accounts; adjustments) is amend-
ed by inserting ‘‘and amounts transferred 
under section 9705(b)’’ after ‘‘premiums 
received’’. 
(ii) SURPLUSES
ATTRIBUTABLE
TO 
PUBLIC FUNDING.—Section 9704(e)(3)(A) 
of such Code is amended by adding at the 
end the following new sentence: ‘‘Amounts 
credited to an account from amounts 
transferred under section 9705(b) shall not 
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253 
be taken into account in determining 
whether there is a surplus in the account 
for purposes of this paragraph.’’ 
(C) APPLICABLE
PERCENTAGE.—Section 
9704(f)(2) of such Code (relating to annual ad-
justments) is amended by adding at the end the 
following new subparagraph: 
‘‘(C) In the case of plan years beginning 
on or after October 1, 2007, the total number 
of assigned eligible beneficiaries shall be re-
duced by the eligible beneficiaries whose assign-
ments 
have 
been 
revoked 
under 
section 
9706(h).’’. 
(3) ASSIGNMENTS AND REASSIGNMENT.—Sec-
tion 9706 of the Internal Revenue Code of 1986 (re-
lating to assignment of eligible beneficiaries) is 
amended by adding at the end the following: 
‘‘(h) ASSIGNMENTS AS OF OCTOBER 1, 2007.— 
‘‘(1) IN GENERAL.—Subject to the premium ob-
ligation set forth in paragraph (3), the Commis-
sioner of Social Security shall— 
‘‘(A) revoke all assignments to persons 
other than 1988 agreement operators for pur-
poses of assessing premiums for plan years be-
ginning on and after October 1, 2007; and 
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254 
‘‘(B) make no further assignments to per-
sons other than 1988 agreement operators, ex-
cept that no individual who becomes an unas-
signed beneficiary by reason of subparagraph 
(A) may be assigned to a 1988 agreement oper-
ator. 
‘‘(2) REASSIGNMENT
UPON
PURCHASE.—This 
subsection shall not be construed to prohibit the re-
assignment under subsection (b)(2) of an eligible 
beneficiary. 
‘‘(3) LIABILITY
OF
PERSONS
DURING
THREE 
FISCAL YEARS BEGINNING ON AND AFTER OCTOBER 
1, 2007.—In the case of each of the fiscal years be-
ginning on October 1, 2007, 2008, and 2009, each 
person other than a 1988 agreement operator shall 
pay to the Combined Fund the following percentage 
of the amount of annual premiums that such person 
would otherwise be required to pay under section 
9704(a), determined on the basis of assignments in 
effect without regard to the revocation of assign-
ments under paragraph (1)(A): 
‘‘(A) For the fiscal year beginning on Oc-
tober 1, 2007, 55 percent. 
‘‘(B) For the fiscal year beginning on Oc-
tober 1, 2008, 40 percent. 
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255 
‘‘(C) For the fiscal year beginning on Oc-
tober 1, 2009, 15 percent.’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to plan years of the 
Combined Fund beginning after September 30, 
2006. 
(b) 1992 UMWA BENEFIT AND OTHER PLANS.— 
(1) TRANSFERS TO PLANS.—Section 9712(a) of 
the Internal Revenue Code of 1986 (relating to the 
establishment and coverage of the 1992 UMWA 
Benefit Plan) is amended by adding at the end the 
following: 
‘‘(3) TRANSFERS
UNDER
OTHER
FEDERAL 
STATUTES.— 
‘‘(A) IN
GENERAL.—The 1992 UMWA 
Benefit Plan shall include any amount trans-
ferred to the plan under subsections (h) and (i) 
of section 402 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1232). 
‘‘(B) USE OF FUNDS.—Any amount trans-
ferred under subparagraph (A) for any fiscal 
year shall be used to provide the health benefits 
described in subsection (c) with respect to any 
beneficiary for whom no monthly per bene-
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256 
ficiary premium is paid pursuant to paragraph 
(1)(A) or (3) of subsection (d). 
‘‘(4) SPECIAL RULE FOR 1993 PLAN.— 
‘‘(A) IN GENERAL.—The plan described in 
section 402(h)(2)(C) of the Surface Mining 
Control and Reclamation Act of 1977 (30 
U.S.C. 
1232(h)(2)(C)) 
shall 
include 
any 
amount transferred to the plan under sub-
sections (h) and (i) of the Surface Mining Con-
trol and Reclamation Act of 1977 (30 U.S.C. 
1232). 
‘‘(B) USE OF FUNDS.—Any amount trans-
ferred under subparagraph (A) for any fiscal 
year shall be used to provide the health benefits 
described in section 402(h)(2)(C)(i) of the Sur-
face Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1232(h)(2)(C)(i)) to individ-
uals described in section 402(h)(2)(C) of such 
Act (30 U.S.C. 1232(h)(2)(C)).’’. 
(2) PREMIUM ADJUSTMENTS.— 
(A) IN GENERAL.—Section 9712(d)(1) of 
such Code (relating to guarantee of benefits) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—All 1988 last signatory op-
erators shall be responsible for financing the benefits 
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257 
described in subsection (c) by meeting the following 
requirements in accordance with the contribution re-
quirements established in the 1992 UMWA Benefit 
Plan: 
‘‘(A) The payment of a monthly per bene-
ficiary premium by each 1988 last signatory op-
erator for each eligible beneficiary of such oper-
ator who is described in subsection (b)(2) and 
who is receiving benefits under the 1992 
UMWA benefit plan. 
‘‘(B) The provision of a security (in the 
form of a bond, letter of credit, or cash escrow) 
in an amount equal to a portion of the pro-
jected future cost to the 1992 UMWA Benefit 
Plan of providing health benefits for eligible 
and potentially eligible beneficiaries attributable 
to the 1988 last signatory operator. 
‘‘(C) If the amounts transferred under 
subsection (a)(3) are less than the amounts re-
quired to be transferred to the 1992 UMWA 
Benefit Plan under subsections (h) and (i) of 
section 402 of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1232), the 
payment of an additional backstop premium by 
each 1988 last signatory operator which is 
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258 
equal to such operator’s share of the amounts 
required to be so transferred but which were 
not so transferred, determined on the basis of 
the number of eligible and potentially eligible 
beneficiaries attributable to the operator.’’. 
(B) CONFORMING AMENDMENTS.—Section 
9712(d) of such Code is amended— 
(i) in paragraph (2)(B), by striking 
‘‘prefunding’’ and inserting ‘‘backstop’’, 
and 
(ii) in paragraph (3), by striking 
‘‘paragraph (1)(B)’’ and inserting ‘‘para-
graph (1) (A)’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to fiscal 
years beginning on or after October 1, 2010. 
SEC. 213. OTHER PROVISIONS. 
(a) BOARD OF TRUSTEES.—Section 9702(b) of the 
Internal Revenue Code of 1986 (relating to board of trust-
ees of the Combined Fund) is amended to read as follows: 
‘‘(b) BOARD OF TRUSTEES.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the board of trustees for the Combined Fund 
shall be appointed as follows: 
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259 
‘‘(A) 2 individuals who represent employers 
in the coal mining industry shall be designated 
by the BCOA; 
‘‘(B) 2 individuals designated by the 
United Mine Workers of America; and 
‘‘(C) 3 individuals selected by the individ-
uals appointed under subparagraphs (A) and 
(B). 
‘‘(2) SUCCESSOR
TRUSTEES.—Any successor 
trustee shall be appointed in the same manner as 
the trustee being succeeded. The plan establishing 
the Combined Fund shall provide for the removal of 
trustees. 
‘‘(3) SPECIAL RULE.—If the BCOA ceases to 
exist, any trustee or successor under paragraph 
(1)(A) shall be designated by the 3 employers who 
were members of the BCOA on the enactment date 
and who have been assigned the greatest number of 
eligible beneficiaries under section 9706.’’. 
(b) ENFORCEMENT OF OBLIGATIONS.— 
(1) FAILURE
TO
PAY
PREMIUMS.—Section 
9707(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(a) FAILURES TO PAY.— 
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260 
‘‘(1) 
PREMIUMS
FOR
ELIGIBLE
BENE-
FICIARIES.—There is hereby imposed a penalty on 
the failure of any assigned operator to pay any pre-
mium required to be paid under section 9704 with 
respect to any eligible beneficiary. 
‘‘(2) CONTRIBUTIONS
REQUIRED
UNDER
THE 
MINING LAWS.—There is hereby imposed a penalty 
on the failure of any person to make a contribution 
required under section 402(h)(5)(B)(ii) of the Sur-
face Mining Control and Reclamation Act of 1977 to 
a plan referred to in section 402(h)(2)(C) of such 
Act. For purposes of applying this section, each such 
required monthly contribution for the hours worked 
of any individual shall be treated as if it were a pre-
mium required to be paid under section 9704 with 
respect to an eligible beneficiary.’’. 
(2) CIVIL
ENFORCEMENT.—Section 9721 of 
such Code is amended to read as follows: 
‘‘SEC. 9721. CIVIL ENFORCEMENT. 
‘‘The provisions of section 4301 of the Employee Re-
tirement Income Security Act of 1974 shall apply, in the 
same manner as any claim arising out of an obligation 
to pay withdrawal liability under subtitle E of title IV of 
such Act, to any claim— 
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261 
‘‘(1) arising out of an obligation to pay any 
amount required to be paid by this chapter; or 
‘‘(2) arising out of an obligation to pay any 
amount required by section 402(h)(5)(B)(ii) of the 
Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1232(h)(5)(B)(ii)).’’. 
TITLE III—OTHER PROVISIONS 
SEC. 301. TOBACCO PERSONAL USE QUANTITY EXCEPTION 
TO NOT APPLY TO DELIVERY SALES. 
(a) DEFINITIONS.—Section 801 of the Tariff Act of 
1930 (19 U.S.C. 1681) is amended by adding at the end 
the following: 
‘‘(3) DELIVERY SALE.—The term ‘delivery sale’ 
means any sale of cigarettes or a smokeless tobacco 
product to a consumer if— 
‘‘(A) the consumer submits the order for 
such sale by means of a telephone or other 
method of voice transmission, the mail, or the 
Internet or other online service, or the seller is 
otherwise not in the physical presence of the 
buyer when the request for purchase or order is 
made; or 
‘‘(B) the cigarettes or smokeless tobacco 
product is delivered by use of a common carrier, 
private delivery service, or the mail, or the sell-
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262 
er is not in the physical presence of the buyer 
when the buyer obtains personal possession of 
the delivered cigarettes or smokeless tobacco 
product.’’. 
(b) INAPPLICABILITY OF EXEMPTIONS FROM RE-
QUIREMENTS FOR ENTRY OF CERTAIN CIGARETTES AND 
SMOKELESS TOBACCO PRODUCTS.—Section 802(b)(1) of 
the Tariff Act of 1930 (19 U.S.C. 1681a(b)(1)) is amend-
ed by adding at the end the following new sentence: ‘‘The 
preceding sentence shall not apply to any cigarettes or 
smokeless tobacco products sold in connection with a deliv-
ery sale.’’. 
(c) STATE ACCESS TO CUSTOMS CERTIFICATIONS.— 
Section 802 of the Tariff Act of 1930 (19 U.S.C. 1681a) 
is amended by adding at the end the following new sub-
section: 
‘‘(d) 
STATE
ACCESS
TO
CUSTOMS
CERTIFI-
CATIONS.—A State, through its Attorney General, shall be 
entitled to obtain copies of any certification required under 
subsection (c) directly— 
‘‘(1) upon request to the agency of the United 
States responsible for collecting such certification; or 
‘‘(2) upon request to the importer, manufac-
turer, or authorized official of such importer or 
manufacturer.’’. 
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263 
(d) ENFORCEMENT PROVISIONS.—Section 803(b) of 
the Tariff Act of 1930 (19 U.S.C. 1681b(b)) is amend-
ed— 
(1) in the first sentence, by inserting before the 
period at the end the following: ‘‘, or to any State 
in which such tobacco product, cigarette papers, or 
tube is found’’; and 
(2) in the second sentence, by inserting ‘‘, or to 
any State,’’ after ‘‘the United States’’. 
(e) INCLUSION OF SMOKELESS TOBACCO.— 
(1) Sections 802 and 803(a) of the Tariff Act 
of 1930 (19 U.S.C. 1681a and 1681b(a)) (other 
than the last sentence of section 802(b)(1), as added 
by subsection (b) of this section) are further amend-
ed by inserting ‘‘or smokeless tobacco products’’ 
after ‘‘cigarettes’’ each place it appears. 
(2) Section 802 of such Act is further amend-
ed— 
(A) in subsection (a)— 
(i) in paragraph (1), by inserting ‘‘or 
section 4 of the Comprehensive Smokeless 
Tobacco Health Education Act of 1986 
(15 U.S.C. 4403), as the case may be’’ 
after ‘‘section 7 of the Federal Cigarette 
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264 
Labeling and Advertising Act (15 U.S.C. 
1335a)’’; 
(ii) in paragraph (2), by inserting ‘‘or 
section 3 of the Comprehensive Smokeless 
Tobacco Health Education Act of 1986 
(15 U.S.C. 4402), as the case may be,’’ 
after ‘‘section 4 of the Federal Cigarette 
Labeling and Advertising Act (15 U.S.C. 
1333)’’; and 
(iii) in paragraph (3), by inserting ‘‘or 
section 3(d) of the Comprehensive Smoke-
less Tobacco Health Education Act of 
1986 (15 U.S.C. 4402(d)), as the case 
may be’’ after ‘‘section 4(c) of the Federal 
Cigarette Labeling and Advertising Act 
(15 U.S.C. 1333(c))’’; 
(B) in subsection (b)— 
(i) in the heading of paragraph (1), 
by inserting ‘‘OR
SMOKELESS
TOBACCO 
PRODUCTS’’ after ‘‘CIGARETTES’’; and 
(ii) in the heading of paragraphs (2) 
and (3), by inserting ‘‘OR SMOKELESS TO-
BACCO
PRODUCTS’’ after ‘‘CIGARETTES’’; 
and 
(C) in subsection (c)— 
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265 
(i) in the heading, by inserting ‘‘OR 
SMOKELESS
TOBACCO
PRODUCT’’ after 
‘‘CIGARETTE’’; 
(ii) in paragraph (1), by inserting ‘‘or 
section 4 of the Comprehensive Smokeless 
Tobacco Health Education Act of 1986 
(15 U.S.C. 4403), as the case may be’’ 
after ‘‘section 7 of the Federal Cigarette 
Labeling and Advertising Act (15 U.S.C. 
1335a)’’; 
(iii) in paragraph (2)(A), by inserting 
‘‘or section 3 of the Comprehensive Smoke-
less Tobacco Health Education Act of 
1986 (15 U.S.C. 4402), as the case may 
be,’’ after ‘‘section 4 of the Federal Ciga-
rette Labeling and Advertising Act (15 
U.S.C. 1333)’’; and 
(iv) in paragraph (2)(B), by inserting 
‘‘or section 3(d) of the Comprehensive 
Smokeless Tobacco Health Education Act 
of 1986 (15 U.S.C. 4402(d)), as the case 
may be’’ after ‘‘section 4(c) of the Federal 
Cigarette Labeling and Advertising Act 
(15 U.S.C. 1333(c))’’. 
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266 
(3) Section 803(b) of such Act, as amended by 
subsection (d)(1) of this section, is further amended 
by inserting ‘‘, or any smokeless tobacco product,’’ 
after ‘‘or tube’’ the first place it appears. 
(4)(A) The heading of title VIII of such Act is 
amended by inserting ‘‘AND SMOKELESS TO-
BACCO 
PRODUCTS’’ 
after 
‘‘CIGA-
RETTES’’. 
(B) The heading of section 802 of such Act is 
amended by inserting ‘‘AND
SMOKELESS
TO-
BACCO PRODUCTS’’ after ‘‘CIGARETTES’’. 
(f) APPLICATION
OF CIVIL PENALTIES
TO RE-
LANDINGS OF TOBACCO PRODUCTS SOLD IN A DELIVERY 
SALE.— 
(1) IN GENERAL.—Section 5761 of the Internal 
Revenue Code of 1986 (relating to civil penalties) is 
amended by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively, and inserting 
after subsection (c) the following new subsection: 
‘‘(d) PERSONAL USE QUANTITIES.— 
‘‘(1) IN
GENERAL.—No quantity of tobacco 
products other than the quantity referred to in para-
graph (2) may be relanded or received as a personal 
use quantity. 
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267 
‘‘(2) EXCEPTION
FOR
PERSONAL
USE
QUAN-
TITY.—Subsection (c) and section 5754 shall not 
apply to any person who relands or receives tobacco 
products in the quantity allowed entry free of tax 
and duty under chapter 98 of the Harmonized Tariff 
Schedule of the United States, and such person may 
voluntarily relinquish to the Secretary at the time of 
entry any excess of such quantity without incurring 
the penalty under subsection (c). 
‘‘(3) SPECIAL RULE FOR DELIVERY SALES.— 
‘‘(A) IN
GENERAL.—Paragraph (2) shall 
not apply to any tobacco product sold in con-
nection with a delivery sale. 
‘‘(B) DELIVERY
SALE.—For purposes of 
subparagraph (A), the term ‘delivery sale’ 
means any sale of a tobacco product to a con-
sumer if— 
‘‘(i) the consumer submits the order 
for such sale by means of a telephone or 
other method of voice transmission, the 
mail, or the Internet or other online serv-
ice, or the seller is otherwise not in the 
physical presence of the buyer when the re-
quest for purchase or order is made, or 
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268 
‘‘(ii) the tobacco product is delivered 
by use of a common carrier, private deliv-
ery service, or the mail, or the seller is not 
in the physical presence of the buyer when 
the buyer obtains personal possession of 
the tobacco product.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 5761 of such 
Code is amended by striking the last two sen-
tences. 
(B) Paragraph (1) of section 5754(c) of 
such Code is amended by striking ‘‘section 
5761(c)’’ and inserting ‘‘section 5761(d)’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to goods entered, or 
withdrawn from warehouse for consumption, on or after 
the 15th day after the date of the enactment of this Act. 
SEC. 302. ETHANOL TARIFF SCHEDULE. 
Headings 9901.00.50 and 9901.00.52 of the Har-
monized Tariff Schedule of the United States are each 
amended in the effective period column by striking ‘‘10/ 
1/2007’’ each place it appears and inserting ‘‘1/1/2009’’. 
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269 
SEC. 303. WITHDRAWAL OF CERTAIN FEDERAL LAND AND 
INTERESTS 
IN 
CERTAIN 
FEDERAL 
LAND 
FROM 
LOCATION, 
ENTRY, 
AND 
PATENT 
UNDER THE MINING LAWS AND DISPOSITION 
UNDER THE MINERAL AND GEOTHERMAL 
LEASING LAWS. 
(a) DEFINITIONS.—In this section: 
(1) BUREAU OF LAND MANAGEMENT LAND.— 
The term ‘‘Bureau of Land Management land’’ 
means the Bureau of Land Management land and 
any federally-owned minerals located south of the 
Blackfeet Indian Reservation and east of the Lewis 
and Clark National Forest to the eastern edge of R. 
8 W., beginning in T. 29 N. down to and including 
T. 19 N. and all of T. 18 N., R. 7 W. 
(2) ELIGIBLE FEDERAL LAND.—The term ‘‘eli-
gible Federal land’’ means the Bureau of Land Man-
agement land and the Forest Service land, as gen-
erally depicted on the map. 
(3) FOREST SERVICE LAND.—The term ‘‘Forest 
Service land’’ means— 
(A) the Forest Service land and any feder-
ally-owned minerals located in the Rocky Moun-
tain Division of the Lewis and Clark National 
Forest, including the approximately 356,111 
acres of land made unavailable for leasing by 
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270 
the August 28, 1997, Record of Decision for 
the Lewis and Clark National Forest Oil and 
Gas Leasing Environmental Impact Statement 
and that is located from T. 31 N. to T. 16 N. 
and R. 13 W. to R. 7 W.; and 
(B) the Forest Service land and any feder-
ally-owned minerals located within the Badger 
Two Medicine area of the Flathead National 
Forest, including— 
(i) the land located in T. 29 N. from 
the western edge of R. 16 W. to the east-
ern edge of R. 13 W.; and 
(ii) the land located in T. 28 N., Rs. 
13 and 14 W. 
(4) MAP.—The term ‘‘map’’ means the map en-
titled ‘‘Rocky Mountain Front Mineral Withdrawal 
Area’’ and dated December 31, 2006. 
(b) WITHDRAWAL.— 
(1) IN
GENERAL.—Subject to valid existing 
rights, the eligible Federal land (including any inter-
est in the eligible Federal land) is withdrawn from— 
(A) all forms of location, entry, and patent 
under the mining laws; and 
(B) disposition under all laws relating to 
mineral and geothermal leasing. 
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271 
(2) AVAILABILITY OF MAP.—The map shall be 
on file and available for inspection in the Office of 
the Chief of the Forest Service. 
(c) TAX INCENTIVE FOR SALE OF EXISTING MIN-
ERAL AND GEOTHERMAL RIGHTS TO TAX-EXEMPT ENTI-
TIES.— 
(1) EXCLUSION.—For purposes of the Internal 
Revenue Code of 1986, gross income shall not in-
clude 25 percent of the qualifying gain from a con-
servation sale of a qualifying mineral or geothermal 
interest. 
(2) QUALIFYING GAIN.—For purposes of this 
subsection, the term ‘‘qualifying gain’’ means any 
gain which would be recognized as long-term capital 
gain under such Code. 
(3) CONSERVATION
SALE.—For purposes of 
this subsection, the term ‘‘conservation sale’’ means 
a sale which meets the following requirements: 
(A) TRANSFEREE IS AN ELIGIBLE ENTI-
TY.—The transferee of the qualifying mineral 
or geothermal interest is an eligible entity. 
(B) QUALIFYING LETTER OF INTENT RE-
QUIRED.—At the time of the sale, such trans-
feree provides the taxpayer with a qualifying 
letter of intent. 
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272 
(C) 
NONAPPLICATION
TO
CERTAIN 
SALES.—The sale is not made pursuant to an 
order of condemnation or eminent domain. 
(4) QUALIFYING MINERAL OR GEOTHERMAL IN-
TEREST.—For purposes of this subsection— 
(A) IN GENERAL.—The term ‘‘qualifying 
mineral or geothermal interest’’ means an inter-
est in any mineral or geothermal deposit located 
on eligible Federal land which constitutes a tax-
payer’s entire interest in such deposit. 
(B) ENTIRE INTEREST.—For purposes of 
subparagraph (A)— 
(i) an interest in any mineral or geo-
thermal deposit is not a taxpayer’s entire 
interest if such interest in such mineral or 
geothermal deposit was divided in order to 
avoid the requirements of such subpara-
graph or section 170(f)(3)(A) of such 
Code, and 
(ii) a taxpayer’s entire interest in such 
deposit does not fail to satisfy such sub-
paragraph solely because the taxpayer has 
retained an interest in other deposits, even 
if the other deposits are contiguous with 
such certain deposit and were acquired by 
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273 
the taxpayer along with such certain de-
posit in a single conveyance. 
(5) OTHER DEFINITIONS.—For purposes of this 
subsection— 
(A) ELIGIBLE ENTITY.—The term ‘‘eligible 
entity’’ means— 
(i) a governmental unit referred to in 
section 170(c)(1) of such Code, or an 
agency or department thereof operated pri-
marily for 1 or more of the conservation 
purposes specified in clause (i), (ii), or (iii) 
of section 170(h)(4)(A) of such Code, or 
(ii) an entity which is— 
(I) 
described 
in 
section 
170(b)(1)(A)(vi) 
or 
section 
170(h)(3)(B) of such Code, and 
(II) organized and at all times 
operated primarily for 1 or more of 
the conservation purposes specified in 
clause (i), (ii), or (iii) of section 
170(h)(4)(A) of such Code. 
(B) QUALIFYING
LETTER
OF
INTENT.— 
The term ‘‘qualifying letter of intent’’ means a 
written letter of intent which includes the fol-
lowing statement: ‘‘The transferee’s intent is 
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274 
that this acquisition will serve 1 or more of the 
conservation purposes specified in clause (i), 
(ii), or (iii) of section 170(h)(4)(A) of the Inter-
nal Revenue Code of 1986, that the transferee’s 
use of the deposits so acquired will be con-
sistent with section 170(h)(5) of such Code, 
and that the use of the deposits will continue to 
be consistent with such section, even if owner-
ship or possession of such deposits is subse-
quently transferred to another person.’’. 
(6) TAX ON SUBSEQUENT TRANSFERS.— 
(A) IN
GENERAL.—A tax is hereby im-
posed on any subsequent transfer by an eligible 
entity of ownership or possession, whether by 
sale, exchange, or lease, of an interest acquired 
directly or indirectly in— 
(i) a conservation sale described in 
paragraph (1), or 
(ii) a transfer described in clause (i), 
(ii), or (iii) of subparagraph (D). 
(B) AMOUNT OF TAX.—The amount of tax 
imposed by subparagraph (A) on any transfer 
shall be equal to the sum of— 
(i) 20 percent of the fair market value 
(determined at the time of the transfer) of 
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275 
the interest the ownership or possession of 
which is transferred, plus 
(ii) the product of— 
(I) the highest rate of tax speci-
fied in section 11 of such Code, times 
(II) any gain or income realized 
by the transferor as a result of the 
transfer. 
(C) LIABILITY.—The tax imposed by sub-
paragraph (A) shall be paid by the transferor. 
(D) RELIEF FROM LIABILITY.—The person 
(otherwise liable for any tax imposed by sub-
paragraph (A)) shall be relieved of liability for 
the tax imposed by subparagraph (A) with re-
spect to any transfer if— 
(i) the transferee is an eligible entity 
which provides such person, at the time of 
transfer, a qualifying letter of intent, 
(ii) in any case where the transferee is 
not an eligible entity, it is established to 
the satisfaction of the Secretary of the 
Treasury, that the transfer of ownership or 
possession, as the case may be, will be con-
sistent with section 170(h)(5) of such 
Code, and the transferee provides such 
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276 
person, at the time of transfer, a quali-
fying letter of intent, or 
(iii) tax has previously been paid 
under this paragraph as a result of a prior 
transfer of ownership or possession of the 
same interest. 
(E) ADMINISTRATIVE
PROVISIONS.—For 
purposes of subtitle F of such Code, the taxes 
imposed by this paragraph shall be treated as 
excise taxes with respect to which the deficiency 
procedures of such subtitle apply. 
(7) REPORTING.—The Secretary of the Treas-
ury may require such reporting as may be necessary 
or appropriate to further the purpose under this 
subsection that any conservation use be in per-
petuity. 
(d) EFFECTIVE DATES.— 
(1) MORATORIUM.—Subsection (b) shall take 
effect on the date of the enactment of this Act. 
(2) TAX
INCENTIVE.—Subsection (c) shall 
apply to sales occurring on or after the date of the 
enactment of this Act. 
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277 
SEC. 304. CONTINUING ELIGIBILITY FOR CERTAIN STU-
DENTS 
UNDER 
DISTRICT 
OF 
COLUMBIA 
SCHOOL CHOICE PROGRAM. 
(a) IN GENERAL.—Section 307(a)(4) of the DC 
School Choice Incentive Act of 2003 (sec. 38— 
1851.06(a)(4), D.C. Official Code) is amended by striking 
‘‘200 percent’’ and inserting the following: ‘‘200 percent 
(or, in the case of an eligible student whose first year of 
participation in the program is an academic year ending 
in June 2005 or June 2006 and whose second or suc-
ceeding year is an academic year ending on or before June 
2009, 300 percent)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in the enact-
ment of the DC School Choice Incentive Act of 2003. 
SEC. 305. STUDY ON ESTABLISHING UNIFORM NATIONAL 
DATABASE ON ELDER ABUSE. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services, in consultation with the Attorney 
General, shall conduct a study on establishing a uni-
form national database on elder abuse. 
(2) ISSUES
STUDIED.—The study conducted 
under paragraph (1) may consider the following: 
(A) Current methodologies used for col-
lecting data on elder abuse, including a deter-
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278 
mination of the shortcomings, strengths, and 
commonalities of existing data collection efforts 
and reporting forms, and how a uniform na-
tional database would capitalize on such efforts. 
(B) The process by which uniform national 
standards for reporting on elder abuse could be 
implemented, including the identification and 
involvement of necessary stakeholders, financial 
resources needed, timelines, and the treatment 
of existing standards with respect to elder 
abuse. 
(C) Potential conflicts in Federal, State, 
and local laws, and enforcement and jurisdic-
tional issues that could occur as a result of the 
creation of a uniform national database on elder 
abuse. 
(D) The scope, purpose, and variability of 
existing definitions used by Federal, State, and 
local agencies with respect to elder abuse. 
(3) DURATION.—The study conducted under 
paragraph (1) shall be conducted for a period not to 
exceed 2 years. 
(b) REPORT.—Not later than 180 days after the com-
pletion of the study conducted under subsection (a)(1), the 
Secretary of Health and Human Services shall submit a 
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