SEC. 7. ENHANCED CONTRABAND TOBACCO ENFORCE-
MENT. 
(a) REQUIREMENTS.—The Director of the Bureau of 
Alcohol, Tobacco, Firearms and Explosives shall— 
(1) create 6 regional contraband tobacco traf-
ficking teams over a 3-year period in New York City, 
Washington DC, Detroit, Los Angeles, Seattle, and 
Miami, 
(2) create a new Tobacco Intelligence Center to 
oversee investigations and monitor and coordinate on-
going investigations and to serve as a nerve center for 
all on going tobacco diversion investigations in the 
United States, and where applicable with law enforce-
ment organizations around the world within the Bu-
reau of Alcohol, Tobacco, Firearms, and Explosives, 
(3) establish covert national warehouse for un-
dercover operations, and 
(4) create a computer database that will track 
and analyze information from retail sellers of tobacco 
products that sell through the internet, mail order or 
make other non face to face sales. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out subsection (a) 
$8,500,000 for each of 5 fiscal years. 
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SEC. 8. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection 
(b), this Act shall take effect on the date that is 90 days 
after the date of enactment of this Act. 
(b) BATFE AUTHORITY.—Section 5 shall take effect 
on the date of enactment of this Act. 
SEC. 9. SEVERABILITY. 
If any provision of this, or an amendment made by 
this Act or the application thereof to any person or cir-
cumstance is held invalid, the remainder of the Act and 
the application of it to any other person or circumstance 
shall not be affected thereby. 
SEC. 10. SENSE OF CONGRESS CONCERNING THE PRECE-
DENTIAL EFFECT OF THIS ACT. 
It is the sense of Congress that unique harms are asso-
ciated with online cigarette sales, including problems with 
verifying the ages of consumers in the digital market and 
the long-term health problems associated with the use of cer-
tain tobacco products. This Act was enacted recognizing the 
longstanding interest of Congress in urging compliance 
with States’ laws regulating remote sales of certain tobacco 
products to citizens of those States, including the passage 
of the Jenkins Act over 50 years ago, which established re-
porting requirements for out-of-State companies that sell 
certain tobacco products to citizens of the taxing States, and 
which gave authority to the Department of Justice and the 
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Bureau of Alcohol, Tobacco, Firearms, and Explosives to 
enforce the Jenkins Act. In light of the unique harms and 
circumstances surrounding the online sale of certain tobacco 
products, this Act is intended to help collect cigarette excise 
taxes, to stop tobacco sales to underage youth, and to help 
the States enforce their laws that target the online sales of 
certain tobacco products only. This Act is in no way meant 
to create a precedent regarding the collection of State sales 
or use taxes by, or the validity of efforts to impose other 
types of taxes on, out-of-State entities that do not have a 
physical presence within the taxing State. 
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Union Calendar No. 60 
111TH CONGRESS 
1ST SESSION 
H. R. 1676 
[Report No. 111–117] 
A BILL 
To prevent tobacco smuggling, to ensure the collec-
tion of all tobacco taxes, and for other purposes. 
MAY 18, 2009 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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