126
to as the ‘‘Secretary’’), to achieve the national goals
specified in subsection (b);
(2) overseeing the health professional education
expenditures of the State health security programs
from the account established under section 602(c);
(3) developing and maintaining, in cooperation
with the Secretary, a system to monitor the number
and specialties of individuals through their health
professional education, any postgraduate training,
and professional practice; and
(4) developing, coordinating, and promoting
other policies that expand the number of primary
care practitioners.
(b) NATIONAL GOALS.—The national goals specified
in this subsection are as follows:
(1) GRADUATE MEDICAL EDUCATION.—By not
later than 5 years after the date of the enactment
of this Act, at least 50 percent of the residents in
medical residency education programs (as defined in
subsection (e)(1)) are primary care residents (as
defined in subsection (e)(3)).
(2) 
MIDLEVEL
PRIMARY
CARE
PRACTI-
TIONERS.—To assure an adequate supply of primary
care practitioners, there shall be a number, specified
by the Board, of midlevel primary care practitioners
127
(as defined in subsection (e)(2)) employed in the
health care system as of January 1, 2007.
(c) METHOD FOR ATTAINMENT OF NATIONAL GOAL
FOR
GRADUATE
MEDICAL
EDUCATION; 
PROGRAM
GOALS.—
(1) IN GENERAL.—The Board shall establish a
method of applying the national goal in subsection
(b)(1) to program goals for each medical residency
education program or to medical residency education
consortia.
(2) 
CONSIDERATION.—The 
program 
goals
under paragraph (1) shall be based on the distribu-
tion of medical schools and other teaching facilities
within each State health security program, and the
number of positions for graduate medical education.
(3) MEDICAL RESIDENCY EDUCATION CONSOR-
TIUM.—In this subsection, the term ‘‘medical resi-
dency education consortium’’ means a consortium of
medical residency education programs in a contig-
uous geographic area (which may be an interstate
area) if the consortium—
(A) includes at least one medical school
with a teaching hospital and related teaching
settings, and
128
(B) has an affiliation with qualified com-
munity-based primary health service providers
described in section 202(a) and with at least
one comprehensive health service organization
established under section 303.
(4) ENFORCEMENT THROUGH STATE HEALTH
SECURITY
BUDGETS.—The Board shall develop a
formula for reducing payments to State health secu-
rity programs (that provide for payments to a med-
ical residency education program) that failed to meet
the goal for the program established under this sub-
section.
(d) METHOD FOR ATTAINMENT OF NATIONAL GOAL
FOR MIDLEVEL PRIMARY CARE PRACTITIONERS.—To as-
sist in attaining the national goal identified in subsection
(b)(2), the Board shall—
(1) advise the Public Health Service on alloca-
tions of funding under titles VII and VIII of the
Public Health Service Act, the National Health
Service Corps, and other programs in order to in-
crease the supply of midlevel primary care practi-
tioners, and
(2) commission a study of the potential benefits
and disadvantages of expanding the scope of practice
129
authorized under State laws for any class of midlevel
primary care practitioners.
(e) DEFINITIONS.—In this title:
(1) MEDICAL
RESIDENCY
EDUCATION
PRO-
GRAM.—The term ‘‘medical residency education pro-
gram’’ means a program that provides education
and training to graduates of medical schools in order
to meet requirements for licensing and certification
as a physician, and includes the medical school su-
pervising the program and includes the hospital or
other facility in which the program is operated.
(2) 
MIDLEVEL
PRIMARY
CARE
PRACTI-
TIONER.—The term ‘‘midlevel primary care practi-
tioner’’ means a clinical nurse practitioner, certified
nurse midwife, physician assistance, or other non-
physician practitioner, specified by the Board, as
authorized to practice under State law.
(3) PRIMARY CARE RESIDENT.—The term ‘‘pri-
mary care resident’’ means (in accordance with cri-
teria established by the Board) a resident being
trained in a distinct program of family practice med-
icine, general practice, general internal medicine, or
general pediatrics.
130
SEC. 702. ESTABLISHMENT OF ADVISORY COMMITTEE ON
HEALTH PROFESSIONAL EDUCATION.
(a) IN GENERAL.—The Board shall provide for an
Advisory Committee on Health Professional Education (in
this section referred to as the ‘‘Committee’’) to advise the
Board on its activities under section 701.
(b) MEMBERSHIP.—The Committee shall be com-
posed of—
(1) the Chair of the Board, who shall serve as
Chair of the Committee, and
(2) 12 members, not otherwise in the employ of
the United States, appointed by the Board without
regard to the provisions of title 5, United States
Code, governing appointments in the competitive
service.
The appointed members shall provide a balanced point of
view with respect to health professional education, primary
care disciplines, and health care policy and shall include
individuals who are representative of medical schools,
other health professional schools, residency programs, pri-
mary care practitioners, teaching hospitals, professional
associations, public health organizations, State health
security programs, and consumers.
(c) TERMS OF MEMBERS.—Each appointed member
shall hold office for a term of five years, except that—
131
(1) any member appointed to fill a vacancy oc-
curring during the term for which the member’s
predecessor was appointed shall be appointed for the
remainder of that term; and
(2) the terms of the members first taking office
shall expire, as designated by the Board at the time
of appointment, two at the end of the second year,
two at the end of the third year, two at the end of
the fourth year, and three at the end of the fifth
year after the date of enactment of this Act.
(d) VACANCIES.—
(1) IN GENERAL.—The Board shall fill any va-
cancy in the membership of the Committee in the
same manner as the original appointment. The va-
cancy shall not affect the power of the remaining
members to execute the duties of the Committee.
(2) VACANCY
APPOINTMENTS.—Any member
appointed to fill a vacancy shall serve for the re-
mainder of the term for which the predecessor of the
member was appointed.
(3) REAPPOINTMENT.—The Board may re-
appoint an appointed member of the Committee for
a second term in the same manner as the original
appointment.
132
(e) DUTIES.—It shall be the duty of the Committee
to advise the Board concerning graduate medical edu-
cation policies under this title.
(f) STAFF.—The Committee, its members, and any
committees of the Committee shall be provided with such
secretarial, clerical, or other assistance as may be author-
ized by the Board for carrying out their respective
functions.
(g) MEETINGS.—The Committee shall meet as fre-
quently as the Board deems necessary, but not less than
4 times each year. Upon request by four or more members
it shall be the duty of the Chair to call a meeting of the
Committee.
(h) COMPENSATION.—Members of the Committee
shall be reimbursed by the Board for travel and per diem
in lieu of subsistence expenses during the performance of
duties of the Board in accordance with subchapter I of
chapter 57 of title 5, United States Code.
(i) FACA NOT APPLICABLE.—The provisions of the
Federal Advisory Committee Act shall not apply to the
Committee.
133
SEC. 703. GRANTS FOR HEALTH PROFESSIONS EDUCATION,
NURSE 
EDUCATION, 
AND 
THE 
NATIONAL
HEALTH SERVICE CORPS.
(a) TRANSFERS
TO PUBLIC HEALTH SERVICE.—
From the amounts provided under subsection (c), the
Board shall make transfers from the American Health Se-
curity Trust Fund to the Public Health Service under sub-
part II of part D of title III, title VII, and title VIII of
the Public Health Service Act for the support of the Na-
tional Health Service Corps, health professions education,
and nursing education, including education of clinical
nurse practitioners, certified registered nurse anesthetists,
certified nurse midwives, and physician assistants. Of the
amounts so transferred in each year, not less than 50 per-
cent shall be expended for the support of the National
Health Service Corps.
(b) RANGE OF FUNDS.—The amount of transfers
under subsection (a) for any fiscal year shall be an amount
(specified by the Board each year) not less than 4⁄100 per-
cent and not to exceed 6⁄100 percent of the amounts the
Board estimates will be expended from the Trust Fund
in the fiscal year.
(c) FUNDS SUPPLEMENTAL TO OTHER FUNDS.—The
funds provided under this section with respect to provision
of services are in addition to, and not in replacement of,
funds made available under the provisions referred to in
134
subsection (a) and shall be administered in accordance
with the terms of such provisions. The Board shall make
no transfer of funds under this section for any fiscal year
for which the total appropriations for the programs au-
thorized by such provisions are less than the total amount
appropriated for such programs in fiscal year 2000.
Subtitle B—Direct Health Care
Delivery
SEC. 711. SETASIDE FOR PUBLIC HEALTH.
(a) TRANSFERS
TO PUBLIC HEALTH SERVICE.—
From the amounts provided under subsection (c), the
Board shall make transfers from the American Health Se-
curity Trust Fund to the Public Health Service for the
following purposes (other than payment for services cov-
ered under title II):
(1) For payments to States under the maternal
and child health block grants under title V of the
Social Security Act.
(2) For prevention and treatment of tuber-
culosis under section 317 of the Public Health Serv-
ice Act.
(3) For the prevention and treatment of sexu-
ally transmitted diseases under section 318 of the
Public Health Service Act.
135
(4) Preventive health block grants under part A
of title XIX of the Public Health Service Act.
(5) Grants to States for community mental
health services under subpart I of part B of title
XIX of the Public Health Service Act.
(6) Grants to States for prevention and treat-
ment of substance abuse under subpart II of part B
of title XIX of the Public Health Service Act.
(7) Grants for HIV health care services under
parts A, B, and C of title XXVI of the Public
Health Service Act.
(8) Public health formula grants described in
subsection (d).
(b) RANGE OF FUNDS.—The amount of transfers
under subsection (a) for any fiscal year shall be an amount
(specified by the Board each year) not less than 1⁄10 per-
cent and not to exceed 14⁄100 percent of the amounts the
Board estimates will be expended from the Trust Fund
in the fiscal year.
(c) FUNDS SUPPLEMENTAL TO OTHER FUNDS.—The
funds provided under this section with respect to provision
of services are in addition to, and not in replacement of,
funds made available under the programs referred to in
subsection (a) and shall be administered in accordance
with the terms of such programs.
136
(d) REQUIRED REPORTS ON HEALTH STATUS.—The
Secretary shall require each State receiving funds under
this section to submit annual reports to the Secretary on
the health status of the population and measurable objec-
tives for improving the health of the public in the State.
Such reports shall include the following:
(1) A comparison of the measures of the State
and local public health system compared to relevant
objectives set forth in ‘‘Health People 2000’’ or sub-
sequent national objectives set by the Secretary.
(2) A description of health status measures to
be improved within the State (at the State and local
levels) through expanded public health functions and
health promotion and disease prevention programs.
(3) Measurable outcomes and process objectives
for improving health status, and a report on out-
comes from the previous year.
(4) Information regarding how Federal funding
has improved population-based prevention activities
and programs.
(5) A description of the core public health func-
tions to be carried out at the local level.
(6) A description of the relationship between
the State’s public health system, community-based
137
health promotion and disease prevention providers,
and the State health security program.
(e) LIMITATION ON FUND TRANSFERS.—The Board
shall make no transfer of funds under this section for any
fiscal year for which the total appropriations for such pro-
grams are less than the total amount appropriated for
such programs in fiscal year 2000.
(f) PUBLIC HEALTH FORMULA GRANTS.—The Sec-
retary shall provide stable funds to States through for-
mula grants for the purpose of carrying out core public
health functions to monitor and protect the health of com-
munities from communicable diseases and exposure to
toxic environmental pollutants, occupational hazards,
harmful products, and poor health outcomes. Such func-
tions include the following:
(1) Data collection, analysis, and assessment of
public health data, vital statistics, and personal
health data to assess community health status and
outcomes reporting. This function includes the ac-
quisition and installation of hardware and software,
and personnel training and technical assistance to
operate and support automated and integrated infor-
mation systems.
138
(2) Activities to protect the environment and to
assure the safety of housing, workplaces, food, and
water.
(3) Investigation and control of adverse health
conditions, and threats to the health status of indi-
viduals and the community. This function includes
the identification and control of outbreaks of infec-
tious disease, patterns of chronic disease and injury,
and cooperative activities to reduce the levels of vio-
lence.
(4) Health promotion and disease prevention
activities for which there is a significant need and a
high priority of the Public Health Service.
(5) The provision of public health laboratory
services to complement private clinical laboratory
services, including—
(A) screening tests for metabolic diseases
in newborns,
(B) toxicology assessments of blood lead
levels and other environmental toxins,
(C) tuberculosis and other diseases requir-
ing partner notification, and
(D) testing for infectious and food-borne
diseases.
139
(6) Training and education for the public
health professions.
(7) Research on effective and cost-effective pub-
lic health practices. This function includes the devel-
opment, testing, evaluation, and publication of re-
sults of new prevention and public health control
interventions.
(8) Integration and coordination of the preven-
tion programs and services of community-based pro-
viders, local and State health departments, and
other sectors of State and local government that af-
fect health.
SEC. 712. SETASIDE FOR PRIMARY HEALTH CARE DELIV-
ERY.
(a) TRANSFERS
TO PUBLIC HEALTH SERVICE.—
From the amounts provided under subsection (c), the
Board shall make transfers from the American Health Se-
curity Trust Fund to the Public Health Service for the
program of primary care service expansion grants under
subpart V of part D of title III of the Public Health
Service Act (as added by section 713 of this Act).
(b) RANGE OF FUNDS.—The amount of transfers
under subsection (a) for any fiscal year shall be an amount
(specified by the Board each year) not less than 6⁄100 per-
cent and not to exceed 1⁄10 percent of the amounts the
140
Board estimates will be expended from the Trust Fund
in the fiscal year.
(c) FUNDS SUPPLEMENTAL TO OTHER FUNDS.—The
funds provided under this section with respect to provision
of services are in addition to, and not in replacement of,
funds made available under the sections 329, 330, 340,
340A, 1001, and 2655 of the Public Health Service Act.
The Board shall make no transfer of funds under this sec-
tion for any fiscal year for which the total appropriations
for such sections are less than the total amount appro-
priated under such sections in fiscal year 2000.
SEC. 713. PRIMARY CARE SERVICE EXPANSION GRANTS.
Part D of title III of the Public Health Service Act
(42 U.S.C. 254b et seq.) is amended by adding at the end
thereof the following new subpart:
‘‘Subpart X—Primary Care Expansion
‘‘SEC. 340F. EXPANDING PRIMARY CARE DELIVERY CAPAC-
ITY IN URBAN AND RURAL AREAS.
‘‘(a) GRANTS FOR PRIMARY CARE CENTERS.—From
the amounts described in subsection (c), the American
Health Security Standards Board shall make grants to
public and nonprofit private entities for projects to plan
and develop primary care centers which will serve medi-
cally underserved populations (as defined in section
330(b)(3)) in urban and rural areas and to deliver primary
141
care services to such populations in such areas. The funds
provided under such a grant may be used for the same
purposes for which a grant may be made under subsection
(c), (e), (f), (g), (h), or (i) of section 330.
‘‘(b) PROCESS OF AWARDING GRANTS.—The provi-
sions of subsection (j)(1) of section 330 shall apply to a
grant under this section in the same manner as they apply
to a grant under the corresponding subsection of such sec-
tion. The provisions of subsection (l)(2)(A) of such section
shall apply to grants for projects to plan and develop pri-
mary care centers under this section in the same manner
as they apply to grants under such section.
‘‘(c) FUNDING AS SET-ASIDE FROM TRUST FUND.—
Funding to carry out this section is provided from the
American Health Security Trust Fund in accordance with
section 912 of the American Health Security Act.
‘‘(d) PRIMARY CARE CENTER DEFINED.—In this sec-
tion, the term ‘primary care center’ means—
‘‘(1) a health center (as defined in section
330(1)),
‘‘(2) an entity qualified to receive a grant under
section 330, 1001 or 2655, or
‘‘(3) a Federally-qualified health center (as de-
fined in section 1905(l)(2)(B) of the Social Security
Act).’’.
142
Subtitle C—Primary Care and
Outcomes Research
SEC. 721. SET-ASIDE FOR OUTCOMES RESEARCH.
(a) GRANTS
FOR
OUTCOMES
RESEARCH.—The
Board shall make transfers from the American Health Se-
curity Trust Fund to the Agency for Health Care Policy
and Research under title IX of the Public Health Service
Act for the purpose of carrying out activities under such
title. The Secretary shall assure that there is a special em-
phasis placed on pediatric outcomes research.
(b) RANGE OF FUNDS.—The amount of transfers
under subsection (a) for any fiscal year shall be an amount
(specified by the Board each year) not less than 1⁄100 per-
cent and not to exceed 2⁄100 percent of the amounts the
Board estimates will be expended from the Trust Fund
in the fiscal year.
(c) FUNDS SUPPLEMENTAL TO OTHER FUNDS.—The
funds provided under this section with respect to provision
of services are in addition to, and not in replacement of,
funds made available to the Agency for Health Care Policy
and Research under section 926 of the Public Health
Service Act. The Board shall make no transfer of funds
under this section for any fiscal year for which the total
appropriations under such section are less than the total
143
amount appropriated under such section and title in fiscal
year 2000.
(d) CONFORMING AMENDMENT.—Section 927(b) of
the Public Health Service Act (42 U.S.C. 299c–6(b)) is
amended by striking ‘‘of the fiscal years 2001 through
2005’’ and inserting ‘‘subsequent fiscal year’’.
SEC. 722. OFFICE OF PRIMARY CARE AND PREVENTION RE-
SEARCH.
(a) IN GENERAL.—Title IV of the Public Health
Service Act is amended—
(1) by redesignating parts G through I as parts
H through J, respectively; and
(2) by inserting after part F the following new
part:
‘‘PART G—RESEARCH ON PRIMARY CARE AND
PREVENTION
‘‘SEC. 486E. OFFICE OF PRIMARY CARE AND PREVENTION
RESEARCH.
‘‘(a) ESTABLISHMENT.—There is established within
the Office of the Director of NIH an office to be known
as the Office of Primary Care and Prevention Research
(in this part referred to as the ‘Office’). The Office shall
be headed by a director, who shall be appointed by the
Director of NIH.
‘‘(b) PURPOSE.—The Director of the Office shall—
144
‘‘(1) identify projects of research on primary
care and prevention, for children as well as adults,
that should be conducted or supported by the na-
tional research institutes, with particular emphasis
on—
‘‘(A) clinical patient care, with special em-
phasis on pediatric clinical care and diagnosis,
‘‘(B) diagnostic effectiveness,
‘‘(C) primary care education,
‘‘(D) health and family planning services,
‘‘(E) medical effectiveness outcomes of pri-
mary care procedures and interventions,
‘‘(F) the use of multidisciplinary teams of
health care practitioners.
‘‘(2) identify multidisciplinary research related
to primary care and prevention that should be so
conducted;
‘‘(3) promote coordination and collaboration
among entities conducting research identified under
any of paragraphs (1) and (2);
‘‘(4) encourage the conduct of such research by
entities receiving funds from the national research
institutes;
‘‘(5) recommend an agenda for conducting and
supporting such research;
145
‘‘(6) promote the sufficient allocation of the re-
sources of the national research institutes for con-
ducting and supporting such research; and
‘‘(7) prepare the report required in section
486G.
‘‘(c) PRIMARY CARE AND PREVENTION RESEARCH
DEFINED.—For purposes of this part, the term ‘primary
care and prevention research’ means research on improve-
ment of the practice of family medicine, general internal
medicine, and general pediatrics, and includes research
relating to—
‘‘(1) obstetrics and gynecology, dentistry, or
mental health or substance abuse treatment when
provided by a primary care physician or other
primary care practitioner, and
‘‘(2) primary care provided by multidisciplinary
teams.
‘‘SEC. 486F. NATIONAL DATA SYSTEM AND CLEARINGHOUSE
ON PRIMARY CARE AND PREVENTION RE-
SEARCH.
‘‘(a) DATA SYSTEM.—The Director of NIH, in con-
sultation with the Director of the Office, shall establish
a data system for the collection, storage, analysis, re-
trieval, and dissemination of information regarding pri-
mary care and prevention research that is conducted or
146
supported by the national research institutes. Information
from the data system shall be available through informa-
tion systems available to health care professionals and pro-
viders, researchers, and members of the public.
‘‘(b) CLEARINGHOUSE.—The Director of NIH, in
consultation with the Director of the Office and with the
National Library of Medicine, shall establish, maintain,
and operate a program to provide, and encourage the use
of, information on research and prevention activities of the
national research institutes that relate to primary care
and prevention research.
‘‘SEC. 486G. BIENNIAL REPORT.
‘‘(a) IN GENERAL.—With respect to primary care
and prevention research, the Director of the Office shall,
not later than one year after the date of the enactment
of this part, and biennially thereafter, prepare a report—
‘‘(1) describing and evaluating the progress
made during the preceding two fiscal years in re-
search and treatment conducted or supported by the
National Institutes of Health;
‘‘(2) summarizing and analyzing expenditures
made by the agencies of such Institutes (and by
such Office) during the preceding two fiscal years;
and
147
‘‘(3) making such recommendations for legisla-
tive and administrative initiatives as the Director of
the Office determines to be appropriate.
‘‘(b) INCLUSION IN BIENNIAL REPORT OF DIRECTOR
OF NIH.—The Director of the Office shall submit each
report prepared under subsection (a) to the Director of
NIH for inclusion in the report submitted to the President
and the Congress under section 403.
‘‘SEC. 486H. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the Office of Primary Care and Prevention Re-
search, 
there 
are 
authorized 
to 
be 
appropriated
$150,000,000 for fiscal year 2002, $180,000,000 for fis-
cal year 2003, and $216,000,000 for fiscal year 2004.’’.
(b) REQUIREMENT OF SUFFICIENT ALLOCATION OF
RESOURCES OF INSTITUTES.—Section 402(b) of the Pub-
lic Health Service Act (42 U.S.C. 282(b)) is amended—
(1) in paragraph (13), by striking ‘‘and’’ after
the semicolon at the end;
(2) in paragraph (14), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(15) after consultation with the Director of
the Office of Primary Care and Prevention Re-
search, shall ensure that resources of the National
148
Institutes of Health are sufficiently allocated for
projects on primary care and prevention research
that are identified under section 486E(b).’’.
Subtitle D—School-Related Health
Services
SEC. 731. AUTHORIZATIONS OF APPROPRIATIONS.
(a) FUNDING FOR SCHOOL-RELATED HEALTH SERV-
ICES.—For the purpose of carrying out this subtitle, there
are authorized to be appropriated $100,000,000 for fiscal
year 
2004, 
$275,000,000 
for 
fiscal 
year 
2005,
$350,000,000 for fiscal year 2006, and $400,000,000 for
each of the fiscal years 2007 and 2008.
(b) RELATION TO OTHER FUNDS.—The authoriza-
tions of appropriations established in subsection (a) are
in addition to any other authorizations of appropriations
that are available for the purpose described in such sub-
section.
SEC. 732. ELIGIBILITY FOR DEVELOPMENT AND OPER-
ATION GRANTS.
(a) IN GENERAL.—Entities eligible to apply for and
receive grants under section 734 or 735 are the following:
(1) State health agencies that apply on behalf
of local community partnerships and other commu-
nities in need of health services for school-aged chil-
dren within the State.
149
(2) Local community partnerships in States in
which health agencies have not applied.
(b) LOCAL COMMUNITY PARTNERSHIPS.—
(1) IN GENERAL.—A local community partner-
ship under subsection (a)(2) is an entity that, at a
minimum, includes—
(A) a local health care provider with expe-
rience in delivering services to school-aged chil-
dren;
(B) one or more local public schools; and
(C) at least one community based organi-
zation located in the community to be served
that has a history of providing services to
school-aged children in the community who are
at-risk.
(2) PARTICIPATION.—A partnership described
in paragraph (1) shall, to the maximum extent fea-
sible, involve broad based community participation
from parents and adolescent children to be served,
health and social service providers, teachers and
other public school and school board personnel, de-
velopment and service organizations for adolescent
children, and interested business leaders. Such par-
ticipation may be evidenced through an expanded
150
partnership, or an advisory board to such partner-
ship.
(c) DEFINITIONS REGARDING CHILDREN.—For pur-
poses of this subtitle:
(1) The term ‘‘adolescent children’’ means
school-aged children who are adolescents.
(2) The term ‘‘school-aged children’’ means in-
dividuals who are between the ages of 4 and 19 (in-
clusive).
SEC. 733. PREFERENCES.
(a) IN GENERAL.—In making grants under sections
734 and 735, the Secretary shall give preference to appli-
cants whose communities to be served show the most sub-
stantial level of need for such services among school-aged
children, as measured by indicators of community health
including the following:
(1) High levels of poverty.
(2) The presence of a medically underserved
population.
(3) The presence of a health professional short-
age area.
(4) High rates of indicators of health risk
among school-aged children, including a high propor-
tion of such children receiving services through the
Individuals with Disabilities Education Act, adoles-
168
cigarette tubes removed during 2000 or 2001)’’ and in-
serting ‘‘2.81 cents’’.
(e) SMOKELESS TOBACCO.—Subsection (e) of section
5701 is amended—
(1) by striking ‘‘58.5 cents (51 cents on snuff
removed during 2000 or 2001)’’ in paragraph (1)
and inserting ‘‘67.5 cents’’, and
(2) by striking ‘‘19.5 cents (17 cents on chew-
ing tobacco removed during 2000 or 2001)’’ in para-
graph (2) and inserting ‘‘22.5 cents’’.
(f) PIPE TOBACCO.—Subsection (f) of section 5701
is amended by striking ‘‘$1.0969 cents (95.67 cents on
pipe tobacco removed during 2000 or 2001)’’ and insert-
ing ‘‘$1.27’’.
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to articles removed (as defined in
section 5702(k) of the Internal Revenue Code of 1986)
after December 31, 2002.
(h) FLOOR STOCKS TAXES.—
(1) IMPOSITION OF TAX.—On tobacco products
and cigarette papers and tubes manufactured in or
imported into the United States which are removed
before January 1, 2003, and held on such date for
sale by any person, there is hereby imposed a tax in
an amount equal to the excess of—