I
105TH CONGRESS
2D SESSION
H. R. 3738
To establish a responsible United States international tobacco policy, to pre-
vent tobacco companies from targeting tobacco products to children,
to ensure no government promotion of tobacco overseas, to curb smug-
gling of tobacco products, to establish the American Center on Global
Health and Tobacco, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 28, 1998
Mr. DOGGETT (for himself, Mr. KENNEDY of Massachusetts, Mrs. LOWEY,
Ms. PELOSI, Mr. HANSEN, Mr. MCDERMOTT, Mr. OLVER, Ms.
DEGETTE, Ms. ROYBAL-ALLARD, Mr. STARK, Ms. MILLENDER-MCDON-
ALD, Mr. VENTO, Mr. UNDERWOOD, Mrs. TAUSCHER, and Mr. PALLONE)
introduced the following bill; which was referred to the Committee on
Commerce, and in addition to the Committees on Ways and Means, Inter-
national Relations, National Security, Resources, and the Judiciary, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To establish a responsible United States international to-
bacco policy, to prevent tobacco companies from target-
ing tobacco products to children, to ensure no govern-
ment promotion of tobacco overseas, to curb smuggling
of tobacco products, to establish the American Center
on Global Health and Tobacco, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—PROHIBITIONS RELAT-
ING TO TOBACCO PRODUCTS
AND CHILDREN
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘International Tobacco
Responsibility Act’’.
SEC. 102. PROHIBITIONS RELATING TO TOBACCO PROD-
UCTS AND CHILDREN.
Chapter VIII of the Federal Food, Drug, and Cos-
metic Act is amended by adding at the end the following:
‘‘SEC. 804. PROHIBITION ON SALE OR DISTRIBUTION OF TO-
BACCO PRODUCTS TO CHILDREN.
‘‘(a) GENERAL RULE.—It shall be unlawful for any
domestic concern or any officer, director, employee, or
agent of such concern to make use of the mails or any
means or instrumentality of interstate commerce to cause
or contribute, either directly or through a foreign subsidi-
ary, joint venture, affiliate, or licensee, to—
‘‘(1) the sale or distribution of tobacco products
in a foreign country to children; or
‘‘(2) the advertising or promotion of tobacco
products in a foreign country in a manner that does
not comply with Federal requirements for the adver-
tisement or promotion of tobacco products in the
United States.
‘‘(b) DEFENSE.—In an action brought to enforce
subsection (a), it shall be an affirmative defense that the
tobacco products involved were sold, distributed, adver-
tised, or promoted in the foreign country involved in a
manner that would be lawful if such conduct occurred in
the United States.
‘‘SEC. 805. LABELING.
‘‘It shall be unlawful for any domestic concern or any
officer, director, employee, or agent of such concern, either
directly or through a foreign subsidiary, joint venture, af-
filiate, or licensee, to make use of the mails or any means
or instrumentality of interstate commerce to cause or con-
tribute to the export from the United States or the sale
or distribution in, or export from, any other country any
tobacco product the package of which does not contain a
warning label that—
‘‘(1) is in the primary language or languages of
the country in which the tobacco product is sold or
distributed to consumers; and
‘‘(2) except for the requirement of paragraph
(1)—
‘‘(A) complies with Federal requirements
for labeling of similar tobacco products manu-
factured, imported, or packaged for sale or dis-
tribution in the United States; or
‘‘(B) complies with the labeling require-
ments of the foreign country in which the prod-
uct is sold or distributed to consumers and
which labeling requirements the Secretary de-
termines are substantially similar to Federal re-
quirements and are adequately enforced by such
country.’’.
SEC. 103. ENFORCEMENT.
Section 301 of the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. 331) is amended by adding at the end the
following:
‘‘(aa) To carry out an act made unlawful by section
804 or 805.
SEC. 104. REWARD.
Section 303(b)(5) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 333)(b)(5)) is amended by add-
ing at the end the following: ‘‘If a person provides infor-
mation leading to the institution of a criminal proceeding
against, and conviction of, a person for a violation of sec-
tion 301(aa), such person shall be entitled to one-half of
the criminal fine imposed and collected for such violation
but not more than $125,000.’’.
SEC. 105. DEFINITIONS.
Section 201 of the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. 321) is amended by adding at the end the
following:
‘‘(kk) The term ‘domestic concern’ means—
‘‘(1) any individual who is a citizen, national, or
resident of the United States; and
‘‘(2) any corporation, partnership, association,
joint-stock company, business trust, unincorporated
organization, or sole proprietorship which has its
principal place of business in the United States or
which is organized under the laws of a State of the
United States or a territory, possession, or common-
wealth of the United States.
‘‘(ll) The term ‘children’ means an individual under
the age of 18.’’.
TITLE II—PROHIBITION ON USE
OF 
FUNDS 
TO 
FACILITATE
THE EXPORTATION OR PRO-
MOTION OF TOBACCO
SEC. 201. PROHIBITION ON USE OF FUNDS TO FACILITATE
THE EXPORTATION OR PROMOTION OF TO-
BACCO.
(a) IN GENERAL.—No funds made available by ap-
propriations or otherwise made available may be used by
any officer, employee, department, or agency of the United
States—
(1) to promote or encourage the export, re-ex-
port, sale, manufacture, advertising, promotion, dis-
tribution, or use of tobacco or tobacco products to
or in a foreign country; or
(2) to seek, through negotiation or otherwise,
the removal or reduction by any foreign country of
any restriction or proposed restriction in that coun-
try on the importation, export, re-export, sale, man-
ufacture, advertising, promotion, distribution, pack-
aging, labeling, use, content, imposition of tariffs, or
taxation, of tobacco or tobacco products.
(b) EXCEPTION.—Subsection (a)(2) shall not apply
to any restriction or proposed restriction by a foreign
country if—
(1) the restriction is applied in a manner which
constitutes a means of arbitrary or unjustifiable dis-
crimination between countries;
(2) the Secretary of Commerce certifies in writ-
ing to Congress that the restriction is being applied
in a manner that constitutes a means of arbitrary or
unjustifiable discrimination between countries; and
(3) the Secretary of Health and Human Serv-
ices certifies to Congress in writing that the restric-
tion is not a reasonable means of protecting the pub-
lic health.
(c) DEFINITION.—In this section, the term ‘‘arbi-
trary or unjustifiable discrimination’’ means a restriction
or proposed restriction by a foreign country that—
(1) is arbitrary or unjustifiable; and
(2) does not adhere to the principle of national
treatment and applies less favorable treatment to
goods that are imported into that country than the
country applies to like goods that are the product,
growth, or manufacture of that country.
TITLE III—AMERICAN CENTER
ON GLOBAL HEALTH AND TO-
BACCO
SEC. 301. INTERNATIONAL TOBACCO CONTROL EFFORTS.
Of the funds paid to the United States by tobacco
manufacturers in accordance with Federal law to imple-
ment the proposed resolution of the controversy between
the tobacco manufacturers and the States adopted June
20, 1997, or an increase in the Federal excise tax on to-
bacco products, two percent shall be made available as fol-
lows:
(1) Of the funds to be made available, 50 per-
cent shall be used to carry out the purpose of the
American Center on Global Health and Tobacco
under section 302.
(2) Of the funds to be made available, 50 per-
cent shall be made available to the Secretary of
Health and Human Services for grants and other
forms of assistance to foreign governments, non-
governmental organizations, and international orga-
nizations to support tobacco control activities in for-
eign countries.
SEC. 302. AMERICAN CENTER ON GLOBAL HEALTH AND TO-
BACCO.
(a) FINDINGS AND PURPOSE.—
(1) FINDINGS.—Congress makes the following
findings:
(A) Tobacco use is estimated to have
caused nearly 3,000,000 deaths a year world-
wide in the early 1990’s, and is projected to
cause in excess of 10,000,000 additional deaths
a year globally by 2030, more than any single
disease. More than 70 percent of those deaths
are expected in developing countries.
(B) Many countries are unprepared to ad-
dress increases in tobacco deaths, including the
impact on health systems and health costs.
While tobacco consumption in the United States
and other established market economies has
fallen over the last decade, consumption is ris-
ing in China, India, East Asia, and former so-
cialist economies. Tobacco companies in the
United States and elsewhere have increasingly
targeted those markets.
(C) Tobacco use markedly reduces good
health and threatens to erode the major health
gains in life expectancy of the last century.
Only HIV/AIDS infection and tobacco are large
and growing causes of death and disease world-
wide. The total projected deaths from tobacco
over the next 10 years likely will exceed deaths
from HIV/AIDS, maternal and childhood condi-
tions, and tuberculosis combined.
(D) The United States consistently has
provided leadership and funding to address the
world’s most pressing public health needs, in-
cluding HIV/AIDS, hunger, maternal and child
health, and immunization.
(E) Through exports and overseas oper-
ations, United States tobacco companies sell
more cigarettes overseas than they do in the
United States. Foreign sales now account for
more than half of all sales for the 2 leading
United States tobacco manufacturers.
(F) United States companies spend billions
of dollars on aggressive tobacco marketing cam-
paigns overseas that associate smoking with the
United States, affluence, freedom, and libera-
tion. In many markets, American companies
reach youthful audiences through television and
radio advertising, free samples, and other meth-
ods that are outlawed in the United States.
(G) In light of the role the United States
tobacco companies have played in spreading to-
bacco use globally, and in light of the large fi-
nancial benefits they continue to enjoy from to-
bacco exports, it is appropriate that this section
be enacted in order to provide assistance and
funding for international public education and
mass media programs to inform the public
about the hazards of tobacco use.
(2) PURPOSE.—The purpose of this section is
to establish the American Center on Global Health
and Tobacco. The Center shall assist organizations
in other countries to reduce and prevent the use of
tobacco. Activities that the Center shall support in-
clude—
(A) public education programs that inform
the public about the hazards of tobacco use and
of environmental tobacco smoke;
(B) mass media campaigns, including
counter-tobacco advertisements, to reverse the
image appeal of pro-tobacco messages, espe-
cially those that glamorize and ‘‘Westernize’’ to-
bacco use to young people; and
(C) education about the economic and soci-
etal costs of tobacco use, and effective tobacco
use prevention and cessation strategies that are
appropriate for the country involved.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—There is established in the
District of Columbia a private, nonprofit corporation
to be known as the American Center on Global
Health and Tobacco (in this section referred to as
‘‘ACT’’). ACT shall—
(A) not be an agency or establishment of
the United States; and
(B) except as otherwise provided in this
section, be subject to, and have all the powers
conferred upon a nonprofit corporation by the
District of Columbia Nonprofit Corporation Act
(D.C. Code section 29–501 et seq.).
(2) RELATION TO UNITED STATES.—Nothing in
this section shall be construed as making ACT an
agency or establishment of the United States, or as
making the members of the Board of ACT, or its
employees, officers or employees of the United
States.
(3) RELATION TO NONGOVERNMENTAL ORGANI-
ZATIONS.—ACT shall have a limited staff, and, to
the maximum extent practicable, utilize the available
experience and talents of nongovernmental organiza-
tions with specialized experience in health, edu-
cation, media, and tobacco.
(4) GOVERNING
BOARD.—ACT shall be gov-
erned by a board of up to 25 members including—
(A) on a bipartisan basis, Members of the
Senate and of the House of Representatives;
(B) the heads of American public health
organizations;
(C) the heads of American media, market-
ing, and other nongovernment institutions and
corporations; and
(D) individuals active in education, public
health, and other relevant activities.
(5) ELIGIBILITY FOR SERVICE ON THE GOV-
ERNING BOARD.—No person who receives benefits,
either directly or indirectly, from a company which
sells or manufactures tobacco products may serve on
the Governing Board of ACT.
(6) INTERNATIONAL
ADVISORY
COUNCIL.—An
International Advisory Council consisting of rep-
resentatives from key global, regional, and national
public health organizations, and leading individual
educators and health professionals shall provide ad-
visory assistance to ACT.
(c) REQUIREMENTS FOR ELIGIBILITY FOR ANNUAL
APPROPRIATIONS.—
(1) OVERSIGHT.—ACT and its grantees shall
be subject to the oversight and supervision of Con-
gress, and shall annually submit a report of its ac-
tivities to Congress in accordance with paragraph
(5)(A)(iii).
(2) COMPLIANCE.—
(A) FUNDING
CONTINGENT
ON
COMPLI-
ANCE.—Annual appropriations may be made to
ACT under this section only if ACT complies
with the requirements specified in this section.
(B) USE OF FUNDS.—ACT may only fund
programs for private sector groups, and may
not carry out programs directly. ACT may pro-
vide funding only for programs which are con-
sistent with the purposes of this section.
(3) SALARIES AND COMPENSATION.—
(A) NO
OTHER
SOURCE
OF
COMPENSA-
TION.—Officers and employees of ACT may not
receive any salary or other compensation from
any source other than ACT for services per-
formed for ACT.
(B) UNITED STATES OFFICERS AND EM-
PLOYEES.—An individual who is an officer or
employee of the United States who also serves
on the Board of Directors or as an officer or
employee of ACT, may not receive any com-
pensation or travel expenses in connection with
services performed for ACT.
(4) STOCKS AND DIVIDENDS.—ACT shall not
issue any shares of stock or declare or pay any divi-
dends.
(5) AUDITS.—
(A) 
INDEPENDENT
PUBLIC
ACCOUNT-
ANTS.—
(i) IN
GENERAL.—The accounts of
ACT shall be audited annually in accord-
ance with generally accepted auditing
standards by independent certified public
accountants or independent licensed public
accountants certified or licensed by a regu-
latory authority of a State or other politi-
cal subdivision of the United States. The
audits shall be conducted at the place or
places where the accounts of ACT are nor-
mally kept. All books, accounts, financial
records, reports, files, and all other papers,
things, or property belonging to or in use
by ACT and necessary to facilitate the au-
dits shall be made available to the person
or persons conducting the audits, and full
facilities for verifying transactions with
any assets held by depositories, fiscal
agents, and custodians shall be afforded to
such person or persons.
(ii) CONTENT OF AUDIT.—The report
of each audit conducted under clause (i)
shall be included in the annual report re-
quired under this subsection. The audit re-
port shall set forth the scope of the audit
and include such statements as are nec-
essary to present fairly ACT’s assets and
liabilities, surplus or deficit, with an analy-
sis of the changes therein during the year,
supplemented in reasonable detail by a
statement of the income and expenses of
ACT during the year, and a statement of
the application of funds, together with the
independent auditor’s opinion of those
statements.
(iii) REPORT.—Not later than Decem-
ber 31 of each year, ACT shall submit an
annual report for the preceding fiscal year
to the President for transmittal to Con-
gress. The report shall include a com-
prehensive and detailed report of ACT’s
operations, activities, financial condition,
and accomplishments under this section
and may include such recommendations as
ACT deems appropriate.
(B) COMPTROLLER GENERAL.—
(i) IN GENERAL.—The financial trans-
actions of ACT for each fiscal year may be
audited by the Comptroller General in ac-
cordance with such principles and proce-
dures and under such rules and regulations
as the Comptroller General may prescribe.
Any such audit shall be conducted at the
place or places where accounts of ACT are
foreign commerce, or to receive therein, or to remove from
customs custody for use, any tobacco product.
(b) CONDITIONS.—The issuance of a permit to a
manufacturer under this section shall be conditioned upon
the compliance of the manufacturer with the requirements
of this title and with all Federal laws relating to tobacco
products.
(c) REVOCATION, SUSPENSION, AND ANNULMENT.—
The program established under subsection (a) shall permit
the Secretary to revoke, suspend, or annul a permit issued
under this section if the Secretary determines that the
terms or conditions of the permit have not been complied
with. Prior to any action under this subsection, the Sec-
retary shall provide the permittee with due notice and the
opportunity for a hearing.
(d) RECORDS
AND AUDITS.—The Secretary may,
under the program established under subsection (a), re-
quire permit holders to keep records concerning the chain
of custody of the tobacco products that are the subject
of the permit and make such records available to the Sec-
retary for inspection and audit.
(e) RETAILERS.—This section shall not apply to re-
tailers of tobacco products, except that retailers shall
maintain commercial records of receipt, and such records
shall be available to the Secretary for inspection and audit.