I
105TH CONGRESS
1ST SESSION
H. R. 3028
To amend the Public Health Service Act and the Federal Food, Drug and
Cosmetic Act to prevent the use of tobacco products by minors, to
reduce the level of tobacco addiction, to compensate Federal and State
Governments for a portion of the health costs of tobacco-related illnesses,
to enhance the national investment in biomedical and basic scientific
research, and to expand programs to address the needs of children,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 12, 1997
Ms. DELAURO (for herself, Mr. PALLONE, Mrs. LOWEY, Mr. STARK, Mr. ACK-
ERMAN, Ms. PELOSI, Ms. DEGETTE, Mr. MILLER of California, Mr.
MCGOVERN, Mr. MEEHAN, Mr. OLVER, Mr. SERRANO, Mr. STOKES, Ms.
NORTON, Mr. RUSH, Mr. DELAHUNT, Mr. MATSUI, Mr. YATES, Ms. WA-
TERS, and Mr. WEYGAND) introduced the following bill; which was re-
ferred to the Committee on Commerce, and in addition to the Committees
on Education and the Workforce, and Agriculture, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Public Health Service Act and the Federal
Food, Drug and Cosmetic Act to prevent the use of
tobacco products by minors, to reduce the level of tobacco
addiction, to compensate Federal and State Governments
for a portion of the health costs of tobacco-related ill-
nesses, to enhance the national investment in biomedical
and basic scientific research, and to expand programs
to address the needs of children, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Healthy and Smoke Free Children Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT
RELATING TO TOBACCO
Sec. 101. Public health and education programs.
‘‘TITLE XXVIII—PUBLIC HEALTH AND EDUCATION PROGRAMS
AND TOBACCO CONTROL
‘‘Sec. 2801. Definitions.
‘‘Subtitle A—Public Health and Education Programs
‘‘Sec. 2811. Payments to States.
‘‘Sec. 2812. Public health programs.
‘‘Sec. 2813. Biomedical research and child development investments.
‘‘Sec. 2814. Tobacco victims compensation fund.
‘‘Sec. 2815. Tobacco community transition assistance.
‘‘Subtitle B—National Health Initiatives
‘‘PART 1—NATIONAL BASIC AND CHILD DEVELOPMENT RESEARCH
‘‘Sec. 2821. National Biomedical, Basic and Child Development Research
Board.
‘‘Sec. 2822. Grants for biomedical and basic research.
‘‘Sec. 2823. Investments in healthy child development and research
projects and training.
‘‘PART 2—PUBLIC HEALTH PROGRAMS
‘‘Sec. 2825. Research, counter-advertising, and CDC programs.
‘‘Sec. 2826. National tobacco usage reduction and education block grant
program.
‘‘Subtitle C—Reduction in Underage Tobacco Use
‘‘Sec. 2831. Purpose.
‘‘Sec. 2832. Child tobacco use surveys.
‘‘Sec. 2833. Reduction in underage tobacco product usage.
‘‘Sec. 2834. Noncompliance.
‘‘Sec. 2835. Use of amounts.
‘‘Sec. 2836. Miscellaneous provisions.
‘‘Subtitle D—Miscellaneous Provisions
‘‘Sec. 2841. Whistleblower protections.
‘‘Sec. 2842. National Tobacco Document Depository.
‘‘Sec. 2843. Tobacco Oversight and Compliance Board.
‘‘Sec. 2844. Preservation of State and local authority.
‘‘Sec. 2845. Regulations.
TITLE II—FDA JURISDICTION OVER TOBACCO PRODUCTS
Subtitle A—Amendments to the Federal Food, Drug and Cosmetic Act
Sec. 201. Reference.
Sec. 202. Statement of general authority.
Sec. 203. Treatment of tobacco products as drugs and devices.
Sec. 204. General health and safety regulation of tobacco products.
‘‘CHAPTER IX—TOBACCO PRODUCTS
‘‘Sec. 901. Definitions.
‘‘Sec. 902. Purpose.
‘‘Sec. 903. Promulgation of regulations.
‘‘Sec. 904. Minimum requirements.
‘‘Sec. 905. Scientific Advisory Committee.
‘‘Sec. 906. Requirements relating to nicotine and other constituents.
‘‘Sec. 907. Reduced risk products.
‘‘Sec. 908. Good manufacturing practice standards.
‘‘Sec. 909. Disclosure and reporting of nontobacco ingredients and con-
stituents.
‘‘Sec. 910. Tobacco product warnings, labeling and packaging.
‘‘Sec. 911. Statement of intended use.
‘‘Sec. 912. Miscellaneous provisions.
TITLE III—STANDARDS TO REDUCE INVOLUNTARY EXPOSURE TO
TOBACCO SMOKE
Sec. 301. Standards to reduce involuntary exposure to tobacco smoke.
TITLE IV—TOBACCO MARKET TRANSITION ASSISTANCE
Sec. 401. Definitions.
Subtitle A—Tobacco Quota Buyout Contracts and Producer Transition
Payments
Sec. 411. Quota owner buyout contracts.
Sec. 412. Producer transition payments for quota tobacco.
Sec. 413. Producer transition payments for non-quota tobacco.
Sec. 414. Elements of contracts.
Subtitle B—No Net Cost Tobacco Program
Sec. 421. Budget deficit assessment.
Subtitle C—Tobacco Community Empowerment Block Grants
Sec. 431. Tobacco community empowerment block grants.
TITLE V—MISCELLANEOUS PROVISIONS
Sec. 501. Sense of the Senate.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Tobacco products are the foremost prevent-
able health problem facing America today. More
than 400,000 individuals die each year as a result
of tobacco induced illnesses and conditions.
(2) Nicotine that is contained in tobacco prod-
ucts is extremely addictive.
(3) The tobacco industry has historically tar-
geted tobacco product marketing and promotional ef-
forts towards minors in order to entrap them into a
lifetime of smoking.
(4) Over 90 percent of individuals who smoke
began smoking regularly while they were still mi-
nors.
(5) Approximately 3,000 minors begin smoking
each day. 1,000 of these minors will die prematurely
from a tobacco induced illness or medical condition.
(6) Tobacco induced illnesses and medical con-
ditions resulting from tobacco use cost the United
States over $100,000,000,000 each year.
(7) Each year the Federal Government incurs
costs in excess of $20,000,000,000 for the medical
treatment of individuals suffering from tobacco in-
duced illnesses and conditions.
(b) PURPOSES.—It is the purpose of this Act to—
(1) substantially reduce youth smoking;
(2) assist individuals who are currently addicted
to tobacco products in overcoming that addiction;
(3) educate the public concerning the health
dangers inherent in the use of tobacco products;
(4) fund medical research; and
(5) provide for the healthy development of
young children and to enhance their learning capac-
ity and improve the quality of their care.
TITLE I—AMENDMENTS TO THE
PUBLIC 
HEALTH 
SERVICE
ACT RELATING TO TOBACCO
SEC. 101. PUBLIC HEALTH AND EDUCATION PROGRAMS.
The Public Health Service Act (42 U.S.C. 201 et
seq.) is amended by adding at the end thereof the follow-
ing new title:
‘‘TITLE XXVIII—PUBLIC HEALTH
AND EDUCATION PROGRAMS
AND TOBACCO CONTROL
‘‘SEC. 2801. DEFINITIONS.
‘‘In this title:
‘‘(1) BRAND.—The term ‘brand’ means a vari-
ety of a tobacco product distinguished by the tobacco
used, tar content, nicotine content, flavoring used,
size, filtration, or packaging.
‘‘(2) CIGAR.—The term ‘cigar’ means any roll
of tobacco wrapped in leaf tobacco or in any sub-
stance containing tobacco (other than any roll of to-
bacco which is a cigarette or cigarillo within the
meaning of paragraph (3) or (4)).
‘‘(3) CIGARETTE.—The term ‘cigarette’ means
any product which contains nicotine, is intended to
be burned under ordinary conditions of use, and con-
sists of—
‘‘(A) any roll of tobacco wrapped in paper
or in any substance not containing tobacco; and
‘‘(B) any roll of tobacco wrapped in any
substance containing tobacco which, because of
its appearance, the type of tobacco used in the
filler, or its packaging and labeling, is likely to
be offered to, or purchased by, consumers as a
cigarette described in subparagraph (A).
‘‘(4) CIGARILLOS.—The term ‘cigarillos’ means
any roll of tobacco wrapped in leaf tobacco or any
substance containing tobacco (other than any roll of
tobacco which is a cigarette within the meaning of
paragraph (3)) and as to which 1,000 units weigh
not more than 3 pounds.
‘‘(5) CIGARETTE
TOBACCO.—The term ‘ciga-
rette tobacco’ means any product that consists of
loose tobacco that contains or delivers nicotine and
is intended for use by persons in a cigarette. Unless
otherwise stated, the requirements of this title per-
taining to cigarettes shall also apply to cigarette to-
bacco.
‘‘(6) 
COMMERCE.—The 
term 
‘commerce’
means—
‘‘(A) commerce between any State, the
District of Columbia, the Commonwealth of
Puerto Rico, Guam, the Virgin Islands, Amer-
ican Samoa, the Northern Mariana Islands or
any territory or possession of the United States;
‘‘(B) commerce between points in any
State, the District of Columbia, the Common-
wealth of Puerto Rico, Guam, the Virgin Is-
lands, American Samoa, the Northern Mariana
Islands or any territory or possession of the
United States; or
‘‘(C) commerce wholly within the District
of Columbia, Guam, the Virgin Islands, Amer-
ican Samoa, the Northern Mariana Islands, or
any territory or possession of the United States.
‘‘(7) 
COMMISSIONER.—The 
term 
‘Commis-
sioner’ means the Commissioner of Food and Drugs.
‘‘(8) DISTRIBUTOR.—The term ‘distributor’
means any person who furthers the distribution of
tobacco products, whether domestic or imported, at
any point from the original place of manufacture to
the person who sells or distributes the product to in-
dividuals for personal consumption. Such term shall
not include common carriers.
‘‘(9) LITTLE
CIGAR.—The term ‘little cigar’
means any roll of tobacco wrapped in leaf tobacco or
any substance containing tobacco (other than any
roll of tobacco which is a cigarette within the mean-
ing of subsection (1)) and as to which 1,000 units
weigh not more than 3 pounds.
‘‘(10) MANUFACTURER.—The term ‘manufac-
turer’ means any person, including any repacker or
relabeler, who manufactures, fabricates, assembles,
processes, or labels a finished tobacco product.
‘‘(11) NICOTINE.—The term ‘nicotine’ means
the 
chemical 
substance 
named 
3-(1-Methyl-2-
pyrrolidinyl)pyridine or C10H14N2, including any salt
or complex of nicotine.
‘‘(12) PACKAGE.—The term ‘package’ means a
pack, box, carton, or container of any kind in which
tobacco products are offered for sale, sold, or other-
wise distributed to consumers.
‘‘(13) PERSON.—The term ‘person’ means an
individual, partnership, corporation, or any other
business or legal entity.
‘‘(14) PIPE TOBACCO.—The term ‘pipe tobacco’
means any loose tobacco that, because of its appear-
ance, type, packaging, or labeling, is likely to be of-
fered to, or purchased by, consumers as a tobacco
product to be smoked in a pipe.
‘‘(15) POINT
OF
SALE.—The term ‘point of
sale’ means any location at which an individual can
purchase or otherwise obtain tobacco products for
personal consumption.
‘‘(16) RETAILER.—The term ‘retailer’ means
any person who sells tobacco products to individuals
for personal consumption, or who operates a facility
where vending machines or self-service displays are
permitted under this title.
‘‘(17) ROLL-YOUR-OWN
TOBACCO.—The term
‘roll-your-own tobacco’’ has the meaning given such
term by section 5702(p) of the Internal Revenue
Code of 1986.
‘‘(18) SALE.—The term ‘sale’ includes the sell-
ing, providing samples of, or otherwise making to-
bacco products available for personal consumption in
any place within the scope of this title.
‘‘(19) 
SECRETARY.—The 
term 
‘Secretary’
means the Secretary of Health and Human Services.
‘‘(20) 
SMOKELESS
TOBACCO.—The 
term
‘smokeless tobacco’ means any product that consists
of cut, ground, powdered, or leaf tobacco that con-
tains nicotine and that is intended to be placed in
the oral or nasal cavity.
‘‘(21) STATE.—The term ‘State’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, Guam, the Virgin Is-
lands, American Samoa, the Northern Mariana Is-
lands, and any other territory or possession of the
United States. Such term includes any political divi-
sion of any State.
‘‘(22) TOBACCO.—The term ‘tobacco’ means to-
bacco in its unmanufactured form.
‘‘(22) TOBACCO PRODUCT.—The term ‘tobacco
product’ means cigarettes, cigarillos, cigarette to-
bacco, little cigars, pipe tobacco, and smokeless to-
bacco, and roll-your-own tobacco.
‘‘Subtitle A—Public Health and
Education Programs
‘‘SEC. 2811. PAYMENTS TO STATES.
‘‘(a) FUNDS.—
‘‘(1) IN GENERAL.—Subject to subsection (d),
there are hereby made available to carry out this
section for each fiscal year an amount equal to the
amount necessary to reimburse States as provided
for in subsection (b).
‘‘(2) 
FISCAL
YEAR
LIMITATION.—Amounts
made available for a fiscal year under paragraph (1)
shall be equal to—
‘‘(A) 43 percent of the net increase in rev-
enues received in the Treasury for such fiscal
year attributable to any amendments made to
chapter 52 of the Internal Revenue Code of
1986 in the fiscal year in which this title is en-
acted, as estimated by the Secretary; less
‘‘(B) amounts made available for such fis-
cal year under sections 2812 and 2814.
‘‘(b) REIMBURSEMENT.—
‘‘(1) IN
GENERAL.—The Secretary shall use
amounts made available under subsection (a) in each
fiscal year to provide funds to each State to reim-
burse such State for amounts expended by the State
for the treatment of individuals with tobacco-related
illnesses or conditions, and to permit States to uti-
lize the Federal share of such expended amounts to
provide services for children.
‘‘(2) AMOUNT.—The amount for which a State
is eligible for under paragraph (1) shall be based on
the ratio of the expenditures of the State under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) for fiscal year 1996 to the expenditures by all
States under such title for such fiscal year.
‘‘(3) ADJUSTMENT.—With respect to a fiscal
year in which the amount determined under sub-
section (a)(1) exceeds the limitation under sub-
section (a)(2), the Secretary shall make pro rata re-
ductions in the amounts provided to States under
this subsection.
‘‘(c) USE OF FUNDS.—
‘‘(1) DETERMINATION.—With respect to each
State, the Secretary shall determine the proportion
of the reimbursement under subsection (b) for each
fiscal year that is equal to the amount that has been
paid to the State as the Federal medical assistance
percentage (as defined in section 1905(b)) of the So-
cial Security Act (42 U.S.C. 1396d(b)) expenditures
by the State for the preceding fiscal year.
‘‘(2) REQUIRED
USE.—With respect to the
amount determined under paragraph (1) for a State
for a fiscal year, the Secretary shall not treat such
amount as an overpayment under any joint Federal-
State health program if the State certifies to the
Secretary that such amount will be used by the
State to serve the needs of children in the State
under 1 or more of the following programs:
‘‘(A) An Even Start program under section
of the Head Start Act (42 U.S.C. 9801 et seq.).
‘‘(B) The Head Start program under the
Head Start Act (42 U.S.C. 9801 et seq.).
‘‘(C) A child care program under the Child
Care and Development Block Grant Act of
1990 (42 U.S.C. 658A et seq.).
‘‘(D) The Individuals with Disabilities
Education Act.
‘‘(E) The child care food program and
start-up and expansion funds for school break
programs and summer food programs under
section 17 of the National School Lunch Act
(42 U.S.C. 1766).
‘‘(F) The special supplemental food pro-
gram under section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786).
‘‘(G) The Maternal and Child Health Serv-
ices Block Grant program under title V of the
Social Security Act (42 U.S.C. 701 et seq.).
‘‘(H) The State Children’s Health Insur-
ance Program of the State under title XXI of
the Social Security Act (42 U.S.C. 1397aa et
seq.).
‘‘(I) The family preservation and support
services program under section 430B of the So-
cial Security Act.
‘‘(J) State initiated programs that are de-
signed to serve the health and developmental
needs of children and are approved by the Sec-
retary.
‘‘(3) COORDINATION.—A State may use not to
exceed 20 percent of the amount determined under
paragraph (1) for the State for a fiscal year to—
‘‘(A) improve linkages and coordination
among programs serving children and families,
including the provision of funds to outpost out-
reach workers into Federally funded early child-
hood programs to ensure effective enrollment in
child health initiatives referred to in paragraph
(2)(H);
‘‘(B) fund local collaboratives which shall
be required to use such funds on needs assess-
ments, planning, and investments to maximize
efforts to improve child development; and
‘‘(C) fund innovative demonstrations that
address the outstanding needs of children and
families as assessed by State and local entities.
‘‘(4) STATE PLAN.—To be eligible to receive
funds under this subsection a State shall prepare
and submit to the Secretary a State plan, at such
time, in such manner, and containing such informa-
tion as the Secretary may require, including a de-
scription of the manner in which the State will use
amounts provided under this subsection. Such plan
shall demonstrate, based on standards established by
the Secretary, that the State will comply with para-
graph (6).
‘‘(5) APPLICATION
OF
REQUIREMENTS.—The
requirements of the respective provisions of law de-
scribed in paragraph (2) shall apply to any funds
made available under this subsection through State
programs under any such provision of law to the
same extent that such requirements would otherwise
apply to such programs under such provisions of
law.
‘‘(6) SUPPLEMENT NOT SUPPLANT.—Amounts
provided to a State under this subsection shall be
used to supplement and not supplant other Federal,
State and local funds provided for programs that
serve the health and developmental needs of chil-
dren. Amounts provided to the State under any of
the provisions of law referred to in paragraph (2)
shall not be reduced solely as a result of the avail-
ability of funds under this section.
‘‘(7) OVERPAYMENTS.—Any amount of the re-
imbursement of a State under paragraph (1) to
which paragraph (2) applies that is not used in ac-
cordance with this subsection shall be treated by the
Secretary as an overpayment under section 1903 of
the Social Security Act (42 U.S.C. 1396b). Any such
overpayments may be allotted among other States
under this subsection in proportion to the amount
that the State originally received under this section.
‘‘SEC. 2812. PUBLIC HEALTH PROGRAMS.
‘‘(a) FUNDING.—There are hereby made available to
carry out this section—
‘‘(1) for fiscal year 1998, $2,100,000,000;
‘‘(2) for fiscal year 1999, $2,175,000,000 in-
creased by an amount equal to the increase in the
Consumer Price Index for the previous fiscal year
for all urban consumers (all items; U.S. city aver-
age);
‘‘(3) for fiscal year 2000, $2,200,000,000 in-
creased by an amount equal to the increase in the
Consumer Price Index for the 2 previous fiscal years
for all urban consumers (all items; U.S. city aver-
age);
‘‘(4) for fiscal year 2001, $2,325,000,000 in-
creased by an amount equal to the increase in the
Consumer Price Index for the 3 previous fiscal years
for all urban consumers (all items; U.S. city aver-
age); and
‘‘(5) for fiscal year 2002 and subsequent fiscal
years, the amount made available for fiscal year
2001 increased by an amount equal to the increase
in the Consumer Price Index for the period encom-
passing the fiscal years from 1998 to the fiscal year
prior to the fiscal year involved for all urban con-
sumers (all items; U.S. city average).
‘‘(b) USE OF FUNDS.—Amounts made available for
a fiscal year under subsection (a) shall be distributed in
the following manner:
‘‘(1) USE REDUCTION AND ADDICTION PREVEN-
TION RESEARCH.—
‘‘(A) IN GENERAL.—The amount described
in subparagraph (B) shall be used by Secretary
to carry out Federal tobacco use reduction and
addiction prevention research under section
2825(a).
‘‘(B) AMOUNT.—The amount described in
this subparagraph is—
‘‘(i) 
for 
fiscal 
year 
1998,
$100,000,000; and
‘‘(ii) for fiscal year 1999 and each
subsequent fiscal year, the amount de-
scribed in clause (i), increased for each
such fiscal year by an amount equal to the
increase in the Consumer Price Index for
the period encompassing the fiscal years
from 1998 to the fiscal year prior to the
fiscal year involved for all urban consumers
(all items; U.S. city average).
‘‘(2) COUNTER-ADVERTISING.—
‘‘(A) IN GENERAL.—The amount described
in subparagraph (B) shall be used by Secretary
to carry out the Federal tobacco product
counter-advertising campaign under section
2825(b).
‘‘(B) AMOUNT.—The amount described in
this subparagraph is—
‘‘(i) 
for 
fiscal 
year 
1998,
$500,000,000; and
‘‘(ii) for fiscal year 1999 and each
subsequent fiscal year, the amount de-
scribed in clause (i), increased for each
such fiscal year by an amount equal to the
increase in the Consumer Price Index for
the period encompassing the fiscal years
from 1998 to the fiscal year prior to the
fiscal year involved for all urban consumers
(all items; U.S. city average).
‘‘(3) CENTERS
FOR
DISEASE
CONTROL
AND
PREVENTION PROGRAMS.—
‘‘(A) IN GENERAL.—The amount described
in subparagraph (B) shall be used by Secretary,
acting through the Centers for Disease Control
and Prevention, to carry programs to discour-
age the initiation of tobacco use, reduce the in-
cidence of tobacco use among current users,
and for other activities designed to reduce the
risk of dependence and injury from tobacco
products under section 2825(c).
‘‘(B) AMOUNT.—The amount described in
this subparagraph is—
‘‘(i) for fiscal year 1998, $60,000,000;
‘‘(ii) for each of the fiscal years 1998
and 2000, $60,000,000, increased for each
such fiscal year by an amount equal to the
increase in the Consumer Price Index for
the period encompassing the fiscal years
from 1998 to the fiscal year prior to the
fiscal year involved for all urban consumers
(all items; U.S. city average);
‘‘(iii) 
for 
fiscal 
year 
2001,
$100,000,000, increased for such fiscal
year by an amount equal to the increase in
the Consumer Price Index for fiscal years
1998 through 2000 for all urban consum-
ers (all items; U.S. city average); and
‘‘(iv) for fiscal year 2002 and subse-
quent fiscal years, the amount described in
clause (iii), increased for each such fiscal
year by an amount equal to the increase in
the Consumer Price Index for the period
encompassing the fiscal years from 1998 to
the fiscal year prior to the fiscal year in-
volved for all urban consumers (all items;
U.S. city average).
‘‘(4) FOOD AND DRUG ADMINISTRATION.—
‘‘(A) IN GENERAL.—The amount described
in subparagraph (B) shall be used by Secretary
to assist in defraying the costs associated with
the activities of the Food and Drug Administra-
tion relating to tobacco.
‘‘(B) AMOUNT.—The amount described in
this subparagraph is—
‘‘(i) 
for 
fiscal 
year 
1998,
$300,000,000; and
‘‘(ii) for fiscal year 1999 and each
subsequent fiscal year, the amount de-
scribed in clause (i), increased for each
such fiscal year by an amount equal to the
increase in the Consumer Price Index for
the period encompassing the fiscal years
from 1998 to the fiscal year prior to the
fiscal year involved for all urban consumers
(all items; U.S. city average).
‘‘(5) STATE BLOCK GRANTS.—
‘‘(A) IN GENERAL.—The amount described
in subparagraph (B) shall be used by Secretary
to make block grants to States under the Na-
tional Tobacco Usage Reduction and Education
Block Grant Program under section 2826.
‘‘(B) AMOUNT.—The amount described in
this subparagraph is—
‘‘(i) 
for 
fiscal 
year 
1998,
$1,144,000,000;
‘‘(ii) 
for 
fiscal 
year 
1999,
$1,215,000,000, increased for such fiscal
year by an amount equal to the increase in
the Consumer Price Index for the previous
fiscal year for all urban consumers (all
items; U.S. city average);
‘‘(iii) 
for 
fiscal 
year 
2000,
$1,240,000,000, increased for such fiscal
year by an amount equal to the increase in
the Consumer Price Index for fiscal years
1998 through 2000 for all urban consum-
ers (all items; U.S. city average);
‘‘(iv) 
for 
fiscal 
year 
2001,
$1,325,000,000, increased for such fiscal
year by an amount equal to the increase in
the Consumer Price Index for fiscal years
1998 through 2000 for all urban consum-
ers (all items; U.S. city average);
‘‘(v) for each of the fiscal years 2002
through 2008, $1,825,000,000, increased
for each such fiscal year by an amount
equal to the increase in the Consumer
Price Index for the period encompassing
the fiscal years from 1998 to the fiscal
year prior to the fiscal year involved for all
urban consumers (all items; U.S. city aver-
age); and
‘‘(vi) for fiscal year 2009 and subse-
quent fiscal years, $1,750,000,000, in-
creased for each such fiscal year by an
amount equal to the increase in the
Consumer Price Index for fiscal years
1998 through the fiscal year previous to
the fiscal year for which the determination
is being made for all urban consumers (all
items; U.S. city average).
‘‘SEC. 2813. BIOMEDICAL RESEARCH AND CHILD DEVELOP-
MENT INVESTMENTS.
‘‘(a) FUNDING.—There are hereby made available to
carry out this section for each fiscal year an amount equal
to 57 percent of the net increase in revenues received in
the Treasury for such fiscal year attributable to any
amendments made to chapter 52 of the Internal Revenue
Code of 1986 in the fiscal year in which this title is en-
acted, as estimated by the Secretary.
‘‘(b) USE OF FUNDS.—Amounts made available for
a fiscal year under subsection (a) shall be used to carry
out national biomedical and basic scientific research activi-
ties and child development and research activities under
part 1 of subtitle C.
‘‘SEC. 2814. TOBACCO VICTIMS COMPENSATION FUND.
‘‘(a) FUNDING.—There are hereby made available to
carry out this section for each fiscal year an amount equal
to 14.2 percent of the net increase in revenues received
in the Treasury for such fiscal year attributable to any
amendments made to chapter 52 of the Internal Revenue
Code of 1986 in the fiscal year in which this title is en-
acted, as estimated by the Secretary.
‘‘(b) USE OF FUNDS.—Amounts made available for
a fiscal year under subsection (a) shall be used to provide
assistance and compensation to individuals suffering from
tobacco-related illnesses and conditions, under a plan to
be developed by the Secretary, not later than 1 year after
the date of enactment of this Act, and submitted to Con-
gress for approval.
‘‘SEC. 2815. TOBACCO COMMUNITY TRANSITION ASSIST-
ANCE.
‘‘(a) FUNDING.—There are hereby made available to
carry out this section—
‘‘(1) for buyouts of quotas under section 411—
‘‘(A) $3,100,000,000 for each of the fiscal
years 1998 and 1999; and
‘‘(B) $3,000,000,000 for fiscal 2000; and
‘‘(2) for block grants under section 431—
‘‘(A) $500,000,000 for each of the fiscal
years 1998 and 1999;
‘‘(B) $800,000,000 for each of the fiscal
years 2000 through 2002; and
‘‘(C) $400,000,000 for fiscal year 2003.
‘‘(b) USE OF FUNDS.—Amounts made available for
a fiscal year under subsection (a) shall remain available
until expended (except that with respect to amounts under
subsection (a)(1), such amounts shall only be available
until September 30, 2001) and shall be used to provide
tobacco transition assistance under title IV of the Healthy
and Smoke Free Children Act.
‘‘Subtitle B—National Health
Initiatives
‘‘PART 1—NATIONAL BASIC AND CHILD
DEVELOPMENT RESEARCH
‘‘SEC. 2821. NATIONAL BIOMEDICAL, BASIC AND CHILD DE-
VELOPMENT RESEARCH BOARD.
‘‘(a) ESTABLISHMENT.—There is established a Fed-
eral board to be known as the ‘National Biomedical and
Basic Scientific Research Board’ (referred to in this sub-
part as the ‘Board’).
‘‘(b) MEMBERSHIP.—
‘‘(1) COMPOSITION.—The board shall be com-
posed of—
‘‘(A) 9 voting members to be appointed by
the President from among individuals with ex-
pertise in biomedical research, basic research,
child development, and medicine; and
‘‘(B) 3 ex officio (nonvoting) members of
which—
‘‘(i) 1 shall be the Secretary;
‘‘(ii) 1 shall be the Secretary of Edu-
cation; and
‘‘(iii) 1 shall be the Assistant to the
President for Science and Technology.
‘‘(2) TERMS.—A member of the Board under
paragraph (1)(A) shall be appointed for a term of 6
years, except that of the members first appointed—
‘‘(A) 3 members shall be appointed for
terms of 6 years;
‘‘(B) 3 members shall be appointed for
terms of 4 years; and
‘‘(C) 3 members shall be appointed for
terms of 2 years.
‘‘(3) VACANCIES.—
‘‘(A) IN
GENERAL.—A vacancy on the
Board shall be filled in the same manner in
which the original appointment was made and
shall be subject to any conditions which applied
with respect to the original appointment.
‘‘(B) FILLING UNEXPIRED TERM.—An in-
dividual appointed to fill a vacancy on the
Board shall be appointed for the unexpired
term of the member replaced.
‘‘(C) EXPIRATION OF TERMS.—The term
of any member of the Board shall not expire be-
fore the date on which the member’s successor
takes office.
‘‘(c) CHAIRPERSON.—The President shall designate
a member of the Board appointed under subsection
(b)(1)(A) as the Chairperson of the Board.
‘‘(d) MEETINGS AND QUORUM.—
‘‘(1) IN GENERAL.—The Commission shall meet
at the call of the Chairperson.
‘‘(2) INITIAL
MEETING.—Not later than 30
days after the date on which all members of the
Board have been appointed, the Board shall hold its
first meeting.
‘‘(3) QUORUM.—A majority of the members of
the Board appointed under subsection (b)(1)(A)
shall constitute a quorum, but a lesser number of
members may hold hearings.
‘‘(e) PERSONNEL MATTERS.—
‘‘(1) COMPENSATION.—Each member of the
Board who is not an officer or employee of the Fed-
eral Government shall be compensated at a rate
equal to the daily equivalent of the annual rate of
basic pay prescribed for level IV of the Executive
Schedule under section 5315 of title 5, United
States Code, for each day (including travel time)
during which such member is engaged in the per-
formance of the duties of the Board. All members of
the Board who are officers or employees of the Unit-
ed States shall serve without compensation in addi-
tion to that received for their services as officers or
employees of the United States.
‘‘(2) TRAVEL EXPENSES.—The members of the
Board shall be allowed travel expenses, including per
diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter
57 of title 5, United States Code, while away from
their homes or regular places of business in the per-
formance of services for the Board.
‘‘(3) STAFF.—
‘‘(A) IN
GENERAL.—The Chairperson of
the Board may, without regard to the civil serv-
ice laws and regulations, appoint and terminate
an executive director and such other additional
personnel as may be necessary to enable the
Board to perform its duties. The employment of
an executive director shall be subject to con-
firmation by the Board.
‘‘(B) COMPENSATION.—The Chairperson
of the Board may fix the compensation of the
executive director and other personnel without
regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of title 5, United
States Code, relating to classification of posi-
tions and General Schedule pay rates, except
that the rate of pay for the executive director
and other personnel may not exceed the rate
payable for level V of the Executive Schedule
under section 5316 of such title.
‘‘(4) DETAIL OF GOVERNMENT EMPLOYEES.—
Any Federal Government employee may be detailed
to the Board without reimbursement, and such de-
tail shall be without interruption or loss of civil serv-
ice status or privilege.
‘‘(5) PROCUREMENT
OF
TEMPORARY
AND
INTERMITTENT SERVICES.—The Chairperson of the
Board may procure temporary and intermittent serv-
ices under section 3109(b) of title 5, United States
Code, at rates for individuals which do not exceed
the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule
under section 5316 of such title.
‘‘(f) POWERS.—The Board shall award grants to, and
enter into contracts with eligible entities under section
2822 for the expansion of basic and biomedical research
and to provide graduate training with respect to such re-
search.
‘‘(g) DELEGATION.—The Board may delegate all or
a portion of grant making authority under subsection (f)
to the Secretary, the Secretary of Education, the Director
of the National Science Foundation, or the head of any
other Federal agency determined appropriate by the
Board.
‘‘(h) AVAILABILITY OF FUNDS.—
‘‘(1) IN
GENERAL.—With respect to a fiscal
year, no funds shall be made available under this
part for such fiscal year until the Secretary certifies
that the amounts appropriated for each of the enti-
ties or activities described in subparagraphs (A) and
(B) of section 2822(a)(1) or subparagraphs (A), (B)
and (F) of section 2823(a)(1) for such fiscal year
has increased as compared to the amounts appro-
priated for the previous fiscal year—
‘‘(A) by not less than the percentage in-
crease in the consumer price index, as deter-
mined by the Secretary of Labor; or
‘‘(B) by an amount equal to the percentage
increase in the level of overall discretionary
spending for such fiscal year as compared to
the previous fiscal year;
whichever is greater.
‘‘(2) APPLICATION
TO
CHILD
DEVELOPMENT
ACTIVITIES.—With respect to a fiscal year, no funds
shall be made available under this part for such fis-
cal year until the Secretary certifies that the
amounts appropriated for each of the entities or ac-
tivities described in section 2823(a)(1)(F) for such
fiscal has increased as compared to the amounts ap-
propriated for the previous fiscal year—
‘‘(A) by not less than the percentage in-
crease in the consumer price index, as deter-
mined by the Secretary of Labor; or
‘‘(B) by an amount equal to the percentage
increase in the level of overall discretionary
spending for such fiscal year as compared to
the previous fiscal year;
whichever is less.
‘‘(3) SUPPLEMENT
NOT
SUPPLANT.—Funds
made available for use under this part shall be used
to supplement and not supplant other funds appro-
priated to the entities described in sections 2822(a)
and 2823(a). Amounts appropriated to such entities
under other provisions of law shall not be reduced
solely as a result of the availability of funds under
this section.
‘‘SEC. 2822. GRANTS FOR BIOMEDICAL AND BASIC RE-
SEARCH.
‘‘(a) ELIGIBLE ENTITIES.—To be eligible to receive
a grant or contract under section 2821(f) an entity shall
be—
‘‘(1) the National Institutes of Health (includ-
ing a subdivision or grantee of such Institutes);
‘‘(2) the National Science Foundation (includ-
ing a subdivision or grantee of such Foundation);
‘‘(3) nationally recognized research hospitals;
‘‘(4) universities with recognized programs of
basic and biomedical research;
‘‘(5) research institutes with expertise in the
conduct of basic or biomedical research;
‘‘(6) cancer research centers that meet the
standards of section 414; and
‘‘(7) entities conducting quality basic or bio-
medical research as determined by the Board.
‘‘(b) GRADUATE TRAINING.—Support may be pro-
vided under section 2821(f) for graduate training, includ-
ing the following:
‘‘(1) Grants for portable fellowships as defined
for purposes of the National Science Foundation Act
of 1950 (42 U.S.C. 1861 et seq.).
‘‘(2) Grants to support an additional year of
portable fellowship training to enhance the teaching
capabilities of fellows seeking careers in academic
teaching settings.
‘‘(3) Programs of student loan forgiveness for
students in the sciences and biomedical sciences who
pursue careers as teachers of science or biomedical
science or researchers in such fields in nonprofit in-
stitutions. Loans may be forgiven under this para-
graph at the rate of—
‘‘(A) 15 percent per year for the first and
second fiscal years after the date of enactment
of this title;
‘‘(B) 20 percent per year for the third and
fourth fiscal years after the date of enactment
of this title; and
‘‘(C) 30 percent per year for the fifth fiscal
year after the date of enactment of this title.
‘‘(4) Programs of postdoctoral fellowships for
individuals qualifying for such fellowships under the
authority of the National Science Foundation of Na-
tional Institutes of Health.
‘‘(5) Programs of grants to universities and
other research facilities to assist in the equipping of
laboratories for new researchers of exceptional prom-
ise during the first 5 years of post-doctoral research.
‘‘(6) Such other programs of grants and con-
tracts as the Board determines will contribute to in-
creasing the supply of high quality scientific and bio-
medical researchers.
‘‘(c) FUNDING.—The Board shall use 50 percent of
the amount made available for a fiscal year under section
2813 to carry out this subpart in such fiscal year.
‘‘SEC. 2823. INVESTMENTS IN HEALTHY CHILD DEVELOP-
MENT 
AND 
RESEARCH 
–PROJECTS 
AND
TRAINING.
‘‘(a) CHILDREN’S RESEARCH, TRAINING AND DEM-
ONSTRATION PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary shall use not
to exceed 10 percent of the funds allocated for use
under this section to award grants of contracts for
the conduct and support of research, training and
demonstration projects relating to child health and
development.
‘‘(2) 
ENTITIES
ELIGIBLE
FOR
RESEARCH
PROJECTS.—To be eligible to receive a grant or con-
tract under paragraph (1) for the conduct or sup-
port of research an entity shall be—
‘‘(A) the National Institutes of Health (in-
cluding a subdivision or grantee of such Insti-
tutes);