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application to the Secretary of Agriculture describ-
ing—
‘‘(A) the economic impact of the increase
in the rate of tax attributable to the amend-
ments made to section 5701 by subsections (b)
and (c) of section 301 and the provisions con-
tained in section 301(d) of the Healthy Moth-
ers, Healthy Children Act of 1997,
‘‘(B) the State’s 5-year goals with regard
to minimizing such economic impact, and
‘‘(C) the State’s proposal for the use of the
grant funds.
‘‘(3) ALLOCATION FORMULA.—The Secretary of
Agriculture shall develop a formula for allocating
grant funds under this section that shall take into
account the number of farmers and workers affected
by the increase in the rate of tax described in para-
graph (2)(A) in a State and the severity of the eco-
nomic impact in the State.
‘‘(4) ANNUAL REPORTS.—Each State that has
received a grant under this subsection shall submit
an annual report to the Secretary of Agriculture de-
scribing—
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‘‘(A) the economic impact of the increase
in the rate of tax described in paragraph
(2)(A),
‘‘(B) an evaluation of the State’s activities
using grant amounts in the previous year, and
‘‘(C) an improvement plan for the follow-
ing year.
‘‘(5) TERMINATION.—The authority provided by
this section shall terminate on December 31, 2002.’’
(2) CLERICAL AMENDMENT.—The table of sec-
tions for such subchapter A is amended by adding
at the end the following new item:
‘‘Sec. 9512. Tobacco Alternatives Trust Fund.’’
SEC. 303. DESIGNATION OF OVERPAYMENTS AND CON-
TRIBUTIONS FOR THE NATIONAL HEALTH
TRUST FUND FOR MOTHERS AND CHILDREN.
(a) DESIGNATION
OF OVERPAYMENTS
AND CON-
TRIBUTIONS FOR THE NATIONAL HEALTH TRUST FUND
FOR MOTHERS AND CHILDREN.—
(1) IN GENERAL.—Subchapter A of chapter 61
of the Internal Revenue Code of 1986 (relating to
returns and records) is amended by adding at the
end the following new part:
133
‘‘PART 
IX—DESIGNATION 
OF 
OVERPAYMENTS
AND CONTRIBUTIONS FOR THE NATIONAL
HEALTH TRUST FUND FOR MOTHERS AND
CHILDREN
‘‘Sec. 6097. Amounts for the National Health Trust Fund for Mothers and Chil-
dren.
‘‘SEC. 6097. AMOUNTS FOR THE NATIONAL HEALTH TRUST
FUND FOR MOTHERS AND CHILDREN.
‘‘(a) IN GENERAL.—Every individual (other than a
nonresident alien) may designate that—
‘‘(1) a portion (not less than $1) of any over-
payment of the tax imposed by chapter 1 for the
taxable year, and
‘‘(2) a cash contribution (not less than $1),
be paid over to the National Health Trust Fund for Moth-
ers and Children. In the case of a joint return of a hus-
band and wife, each spouse may designate one-half of any
such overpayment of tax (not less than $2).
‘‘(b) MANNER AND TIME OF DESIGNATION.—Any
designation under subsection (a) may be made with re-
spect to any taxable year only at the time of filing the
original return of the tax imposed by chapter 1 for such
taxable year. Such designation shall be made either on the
1st page of the return or on the page bearing the tax-
payer’s signature.
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‘‘(c) OVERPAYMENTS TREATED AS REFUNDED.—For
purposes of this section, any overpayment of tax des-
ignated under subsection (a) shall be treated as being re-
funded to the taxpayer as of the last day prescribed for
filing the return of tax imposed by chapter 1 (determined
with regard to extensions) or, if later, the date the return
is filed.
‘‘(d) DESIGNATED AMOUNTS NOT DEDUCTIBLE.—
No amount designated pursuant to subsection (a) shall be
allowed as a deduction under section 170 or any other sec-
tion for any taxable year.
‘‘(e) TERMINATION.—This section shall not apply to
taxable years beginning in a calendar year after a deter-
mination by the Secretary that the sum of all designations
under subsection (a) for taxable years beginning in the
second year preceding the calendar year is less than
$5,000,000.’’.
(b) CLERICAL AMENDMENT.—The table of parts for
subchapter A of chapter 61 of such Code is amended by
adding at the end the following new item:
‘‘Part IX. Designation of overpayments and contributions for the
National Health Trust Fund for Mothers and Chil-
dren.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning with
135
the first calendar year beginning after the date of enact-
ment of this Act.
Æ