port directly to the President and Congress. Any 
delays or blockages in rapid execution of these pro-
grams and activities shall immediately be brought to 
the attention of the President and Congress. 
‘‘(2) The Panel shall submit to the President 
periodic progress reports on the National Cancer 
Program and shall submit to the President, the Sec-
retary, and the Congress an annual evaluation of the 
efficacy of the Program and suggestions for im-
provements, and shall submit such other reports as 
the President shall direct. 
‘‘(3) The Panel shall submit an annual report 
of the short and long-term needs and opportunities 
of federally funded cancer programs and make rec-
ommendations on how to better integrate and co-
ordinate these activities in furtherance of advancing 
progress in the war on cancer. Such reports will be 
based on recommendations to be developed through 
one or more meetings convened at least once each 
year that would include the participation of individ-
uals with extensive expertise in the areas of expendi-
ture enumerated under section (3)(a) of this Act, in-
cluding representation from the relevant federally- 
funded cancer programs.’’. 
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(c) ALTERNATIVE
FUNDING
SOURCES
FOR
NA-
TIONAL CANCER FUND.—Section 415 of the Public 
Health Service Act (42 U.S.C. 285a–4) is amended by 
adding at the end the following new subsection: 
‘‘(c) ALTERNATIVE FUNDING SOURCES
FOR NA-
TIONAL CANCER FUND.— 
‘‘(1) IN GENERAL.—Beginning no later than 6 
months after the date of the enactment of this sub-
section, the Panel shall convene one or more meet-
ings to support an examination of the feasibility of 
additional sources of funding that could be credited 
to the National Cancer Fund in order to determine 
which funding supplemental sources for federally 
funded cancer programs will provide the greatest op-
portunities for strengthening these programs. 
‘‘(2) PARTICIPANTS.—Such meetings shall be 
comprised of individuals having expertise in public 
and private finance, capital investment, public 
health, cancer research, cancer prevention, cancer 
screening, and cancer treatment, in order to deter-
mine the needs of the National Cancer Fund along 
with viable options for supporting the fund. 
‘‘(3) DEADLINE FOR REPORT.—Within 1 year 
after the date of the enactment of this subsection, 
the Panel shall issue a report to be delivered to Con-
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gress with recommendations for funding the Na-
tional Cancer Fund.’’ 
SEC. 5. INCREASE IN EXCISE TAX RATE ON TOBACCO PROD-
UCTS. 
(a) CIGARS.—Section 5701(a) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘$1.828 cents per thousand 
($1.594 cents per thousand on cigars removed dur-
ing 2000 or 2001)’’ in paragraph (1) and inserting 
‘‘$50.00 per thousand’’, 
(2) by striking ‘‘20.719 percent (18.063 percent 
on cigars removed during 2000 or 2001)’’ in para-
graph (2) and inserting ‘‘52.988 percent’’, and 
(3) by striking ‘‘$48.75 per thousand ($42.50 
per thousand on cigars removed during 2000 or 
2001)’’ in paragraph (2) and inserting ‘‘$3.00 per 
cigar’’. 
(b) CIGARETTES.—Section 5701(b) of such Code is 
amended— 
(1) by striking ‘‘$19.50 per thousand ($17 per 
thousand on cigarettes removed during 2000 or 
2001)’’ in paragraph (1) and inserting ‘‘$50.00 per 
thousand’’, and 
(2) by striking ‘‘$40.95 per thousand ($35.70 
per thousand on cigarettes removed during 2000 or 
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2001)’’ in paragraph (2) and inserting ‘‘$105.00 per 
thousand’’. 
(c) CIGARETTE PAPERS.—Section 5701(c) of such 
Code is amended by striking ‘‘1.22 cents (1.06 cents on 
cigarette papers removed during 2000 or 2001)’’ and in-
serting ‘‘3.13 cents’’. 
(d) CIGARETTE TUBES.—Section 5701(d) of such 
Code is amended by striking ‘‘2.44 cents (2.13 cents on 
cigarette tubes removed during 2000 or 2001)’’ and in-
serting ‘‘6.26 cents’’. 
(e) SMOKELESS TOBACCO.—Section 5701(e) of such 
Code is amended— 
(1) by striking ‘‘58.5 cents (51 cents on snuff 
removed during 2000 or 2001)’’ in paragraph (1) 
and inserting ‘‘$1.50’’, and 
(2) by striking ‘‘19.5 cents (17 cents on chew-
ing tobacco removed during 2000 or 2001)’’ in para-
graph (2) and inserting ‘‘50 cents’’. 
(f) PIPE TOBACCO.—Section 5701(f) of such Code is 
amended by striking ‘‘$1.0969 cents (95.67 cents on pipe 
tobacco removed during 2000 or 2001)’’ and inserting 
‘‘$2.8126 cents’’. 
(g) ROLL-YOUR-OWN TOBACCO.—Section 5701(g) of 
such Code is amended by striking ‘‘$1.0969 cents (95.67 
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cents on roll-your-own tobacco removed during 2000 or 
2001)’’ and inserting ‘‘$8.8889 cents’’. 
(h) FLOOR STOCKS TAXES.— 
(1) IMPOSITION OF TAX.—On tobacco products 
(other than cigars described in section 5701(a)(2) of 
the Internal Revenue Code of 1986) and cigarette 
papers and tubes manufactured in or imported into 
the United States which are removed before January 
1, 2009, and held on such date for sale by any per-
son, there is hereby imposed a tax in an amount 
equal to the excess of— 
(A) the tax which would be imposed under 
section 5701 of such Code on the article if the 
article had been removed on such date, over 
(B) the prior tax (if any) imposed under 
section 5701 of such Code on such article. 
(2) CREDIT AGAINST TAX.—Each person shall 
be allowed as a credit against the taxes imposed by 
paragraph (1) an amount equal to $500. Such credit 
shall not exceed the amount of taxes imposed by 
paragraph (1) on January 1, 2009, for which such 
person is liable. 
(3) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
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(A) LIABILITY FOR TAX.—A person hold-
ing tobacco products, cigarette papers, or ciga-
rette tubes on January 1, 2009, to which any 
tax imposed by paragraph (1) applies shall be 
liable for such tax. 
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe by reg-
ulations. 
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore April 1, 2009. 
(4) ARTICLES
IN
FOREIGN
TRADE
ZONES.— 
Notwithstanding the Act of June 18, 1934 (com-
monly known as the Foreign Trade Zone Act, 48 
Stat. 998, 19 U.S.C. 81a et seq.) or any other provi-
sion of law, any article which is located in a foreign 
trade zone on January 1, 2009, shall be subject to 
the tax imposed by paragraph (1) if— 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant 
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or 
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(B) such article is held on such date under 
the supervision of an officer of the United 
States Customs and Border Protection of the 
Department of Homeland Security pursuant to 
the 2d proviso of such section 3(a). 
(5) DEFINITIONS.—For purposes of this sub-
section— 
(A) IN GENERAL.—Any term used in this 
subsection which is also used in section 5702 of 
the Internal Revenue Code of 1986 shall have 
the same meaning as such term has in such 
section. 
(B) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the 
Secretary’s delegate. 
(6) CONTROLLED
GROUPS.—Rules similar to 
the rules of section 5061(e)(3) of such Code shall 
apply for purposes of this subsection. 
(7) OTHER LAWS APPLICABLE.—All provisions 
of law, including penalties, applicable with respect to 
the taxes imposed by section 5701 of such Code 
shall, insofar as applicable and not inconsistent with 
the provisions of this subsection, apply to the floor 
stocks taxes imposed by paragraph (1), to the same 
extent as if such taxes were imposed by such section 
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5701. The Secretary may treat any person who bore 
the ultimate burden of the tax imposed by para-
graph (1) as the person to whom a credit or refund 
under such provisions may be allowed or made. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to articles removed (as defined in 
section 5702(j) of the Internal Revenue Code of 1986) 
after December 31, 2009. 
SEC. 6. ADMINISTRATIVE IMPROVEMENTS. 
(a) PERMIT, REPORT, AND RECORD REQUIREMENTS 
FOR MANUFACTURERS AND IMPORTERS OF PROCESSED 
TOBACCO.— 
(1) PERMITS.— 
(A) APPLICATION.—Section 5712 of the 
Internal Revenue Code of 1986 is amended by 
inserting ‘‘or processed tobacco’’ after ‘‘tobacco 
products’’. 
(B) ISSUANCE.—Section 5713(a) of such 
Code is amended by inserting ‘‘or processed to-
bacco’’ after ‘‘tobacco products’’. 
(2) INVENTORIES AND REPORTS.— 
(A) INVENTORIES.—Section 5721 of such 
Code is amended by inserting ‘‘, processed to-
bacco,’’ after ‘‘tobacco products’’. 
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(B) REPORTS.—Section 5722 of such Code 
is amended by inserting ‘‘, processed tobacco,’’ 
after ‘‘tobacco products’’. 
(3) RECORDS.—Section 5741 of such Code is 
amended by inserting ‘‘, processed tobacco,’’ after 
‘‘tobacco products’’. 
(4) 
MANUFACTURER
OF
PROCESSED
TO-
BACCO.—Section 5702 of such Code is amended by 
adding at the end the following new subsection: 
‘‘(p) MANUFACTURER OF PROCESSED TOBACCO.— 
‘‘(1) IN GENERAL.—The term ‘manufacturer of 
processed tobacco’ means any person who processes 
any tobacco other than tobacco products. 
‘‘(2) PROCESSED TOBACCO.—The processing of 
tobacco shall not include the farming or growing of 
tobacco or the handling of tobacco solely for sale, 
shipment, or delivery to a manufacturer of tobacco 
products or processed tobacco.’’. 
(5) 
CONFORMING
AMENDMENT.—Section 
5702(k) of such Code is amended by inserting ‘‘, or 
any processed tobacco,’’ after ‘‘nontaxpaid tobacco 
products or cigarette papers or tubes’’. 
(6) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on January 1, 
2009. 
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(b) BASIS FOR DENIAL, SUSPENSION, OR REVOCA-
TION OF PERMITS.— 
(1) DENIAL.—Paragraph (3) of section 5712 of 
such Code is amended to read as follows: 
‘‘(3) such person (including, in the case of a 
corporation, any officer, director, or principal stock-
holder and, in the case of a partnership, a part-
ner)— 
‘‘(A) is, by reason of his business experi-
ence, financial standing, or trade connections or 
by reason of previous or current legal pro-
ceedings involving a felony violation of any 
other provision of Federal criminal law relating 
to tobacco products, cigarette paper, or ciga-
rette tubes, not likely to maintain operations in 
compliance with this chapter, 
‘‘(B) has been convicted of a felony viola-
tion of any provision of Federal or State crimi-
nal law relating to tobacco products, cigarette 
paper, or cigarette tubes, or 
‘‘(C) has failed to disclose any material in-
formation required or made any material false 
statement in the application therefor.’’. 
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(2) SUSPENSION OR REVOCATION.—Subsection 
(b) of section 5713 of such Code is amended to read 
as follows: 
‘‘(b) SUSPENSION OR REVOCATION.— 
‘‘(1) SHOW CAUSE HEARING.—If the Secretary 
has reason to believe that any person holding a per-
mit— 
‘‘(A) has not in good faith complied with 
this chapter, or with any other provision of this 
title involving intent to defraud, 
‘‘(B) has violated the conditions of such 
permit, 
‘‘(C) has failed to disclose any material in-
formation required or made any material false 
statement in the application for such permit, 
‘‘(D) has failed to maintain his premises in 
such manner as to protect the revenue, 
‘‘(E) is, by reason of previous or current 
legal proceedings involving a felony violation of 
any other provision of Federal criminal law re-
lating to tobacco products, cigarette paper, or 
cigarette tubes, not likely to maintain oper-
ations in compliance with this chapter, or 
‘‘(F) has been convicted of a felony viola-
tion of any provision of Federal or State crimi-
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nal law relating to tobacco products, cigarette 
paper, or cigarette tubes, 
the Secretary shall issue an order, stating the facts 
charged, citing such person to show cause why his 
permit should not be suspended or revoked. 
‘‘(2) ACTION FOLLOWING HEARING.—If, after 
hearing, the Secretary finds that such person has 
not shown cause why his permit should not be sus-
pended or revoked, such permit shall be suspended 
for such period as the Secretary deems proper or 
shall be revoked.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
(c) APPLICATION
OF INTERNAL REVENUE CODE 
STATUTE OF LIMITATIONS FOR ALCOHOL AND TOBACCO 
EXCISE TAXES.— 
(1) IN GENERAL.—Section 514(a) of the Tariff 
Act of 1930 (19 U.S.C. 1514(a)) is amended by 
striking ‘‘and section 520 (relating to refunds)’’ and 
inserting ‘‘section 520 (relating to refunds), and sec-
tion 6501 of the Internal Revenue Code of 1986 
(but only with respect to taxes imposed under chap-
ters 51 and 52 of such Code)’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to articles imported 
after the date of the enactment of this Act. 
(d) EXPANSION OF DEFINITION OF ROLL-YOUR-OWN 
TOBACCO.— 
(1) IN GENERAL.—Section 5702(o) of the In-
ternal Revenue Code of 1986 is amended by insert-
ing ‘‘or cigars, or for use as wrappers thereof’’ be-
fore the period at the end. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to articles removed (as 
defined in section 5702(j) of the Internal Revenue 
Code of 1986) after December 31, 2009. 
(e) TIME
OF TAX
FOR UNLAWFULLY MANUFAC-
TURED TOBACCO PRODUCTS.— 
(1) IN GENERAL.—Section 5703(b)(2) of such 
Code is amended by adding at the end the following 
new subparagraph: 
‘‘(F) SPECIAL
RULE
FOR
UNLAWFULLY 
MANUFACTURED TOBACCO PRODUCTS.—In the 
case of any tobacco products, cigarette paper, 
or cigarette tubes produced in the United 
States at any place other than the premises of 
a manufacturer of tobacco products, cigarette 
paper, or cigarette tubes that has filed the bond 
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and obtained the permit required under this 
chapter, tax shall be due and payable imme-
diately upon manufacture.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
SEC. 7. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
Subparagraph (B) of section 401(1) of the Tax In-
crease Prevention and Reconciliation Act of 2005 is 
amended by striking ‘‘114.75 percent’’ and inserting 
‘‘113.75 percent’’. 
Æ 
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