Federal, State, local, tribal, or other law. Nothing in 
this subsection shall be construed to expand, restrict, 
or otherwise modify any right of an authorized State, 
local, or tribal government official to proceed in a 
State, tribal, or other appropriate court, or take other 
enforcement actions, on the basis of an alleged viola-
tion of State, local, tribal, or other law. 
SEC. 4. COMPLIANCE WITH MODEL STATUTE OR QUALI-
FYING STATUTE. 
(a) IN GENERAL.—A Tobacco Product Manufacturer 
or importer may not sell in, deliver to, or place for delivery 
sale, or cause to be sold in, delivered to, or placed for deliv-
ery sale in a State that is a party to the Master Settlement 
Agreement, any cigarette manufactured by a Tobacco Prod-
uct Manufacturer that is not in full compliance with the 
terms of the Model Statute or Qualifying Statute enacted 
by such State requiring funds to be placed into a qualified 
escrow account under specified conditions, or any regula-
tions promulgated pursuant to such statute. 
(b) JURISDICTION TO PREVENT AND RESTRAIN VIOLA-
TIONS.— 
(1) IN
GENERAL.—The United States district 
courts shall have jurisdiction to prevent and restrain 
violations of subsection (a) in accordance with this 
subsection. 
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(2) INITIATION OF ACTION.—A State, through its 
attorney general, may bring an action in the United 
States district courts to prevent and restrain viola-
tions of subsection (a) by any person (or by any per-
son controlling such person). 
(3) ATTORNEY
FEES.—In any action under 
paragraph (2), a State, through its attorney general, 
shall be entitled to reasonable attorney fees from a 
person found to have willfully and knowingly violated 
subsection (a). 
(4) NONEXCLUSIVITY OF REMEDIES.—The rem-
edy available under paragraph (2) is in addition to 
any other remedies available under Federal, State, or 
other law. No provision of this Act or any other Fed-
eral law shall be held or construed to prohibit or pre-
empt the Master Settlement Agreement, the Model 
Statute (as defined in the Master Settlement Agree-
ment), any legislation amending or complementary to 
the Model Statute in effect as of June 1, 2006, or any 
legislation substantially similar to such existing, 
amending, or complementary legislation hereinafter 
enacted. 
(5) OTHER ENFORCEMENT ACTIONS.—Nothing in 
this subsection shall be construed to prohibit an au-
thorized State official from proceeding in State court 
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or taking other enforcement actions on the basis of an 
alleged violation of State or other law. 
(6) AUTHORITY OF THE ATTORNEY GENERAL.— 
The Attorney General of the United States may ad-
minister and enforce subsection (a). 
(c) DEFINITIONS.—In this section the following defini-
tions apply: 
(1) DELIVERY SALE.—The term ‘‘delivery sale’’ 
means any sale of cigarettes or smokeless tobacco to 
a consumer if— 
(A) the consumer submits the order for such 
sale by means of a telephone or other method of 
voice transmission, the mails, or the Internet or 
other online service, or the seller is otherwise not 
in the physical presence of the buyer when the 
request for purchase or order is made; or 
(B) the cigarettes or smokeless tobacco are 
delivered by use of a common carrier, private de-
livery service, or the mails, or the seller is not 
in the physical presence of the buyer when the 
buyer obtains possession of the cigarettes or 
smokeless tobacco. 
(2) IMPORTER.—The term ‘‘importer’’ means 
each of the following: 
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(A) SHIPPING OR CONSIGNING.—Any person 
in the United States to whom nontaxpaid to-
bacco products manufactured in a foreign coun-
try, Puerto Rico, the Virgin Islands, or a posses-
sion of the United States are shipped or con-
signed. 
(B) MANUFACTURING
WAREHOUSES.—Any 
person who removes cigars or cigarettes for sale 
or consumption in the United States from a cus-
toms-bonded manufacturing warehouse. 
(C) UNLAWFUL
IMPORTING.—Any person 
who smuggles or otherwise unlawfully brings to-
bacco products into the United States. 
(3) MASTER
SETTLEMENT
AGREEMENT.—The 
term ‘‘Master Settlement Agreement’’ means the 
agreement executed November 23, 1998, between the 
attorneys general of 46 States, the District of Colum-
bia, the Commonwealth of Puerto Rico, and 4 terri-
tories of the United States and certain tobacco manu-
facturers. 
(4) MODEL STATUTE; QUALIFYING STATUTE.— 
The terms ‘‘Model Statute’’ and ‘‘Qualifying Statute’’ 
means a statute as defined in section IX(d)(2)(e) of 
the Master Settlement Agreement. 
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(5) TOBACCO
PRODUCT
MANUFACTURER.—The 
term ‘‘Tobacco Product Manufacturer’’ has the mean-
ing given that term in section II(uu) of the Master 
Settlement Agreement. 
SEC. 5. INSPECTION BY BUREAU OF ALCOHOL, TOBACCO, 
FIREARMS, AND EXPLOSIVES OF RECORDS OF 
CERTAIN CIGARETTE AND SMOKELESS TO-
BACCO SELLERS; CRIMINAL PENALTY. 
(a) RECORDKEEPING, REPORTING, 
AND
INSPEC-
TION.—Section 2343(c) of title 18, United States Code, is 
amended to read as follows: 
‘‘(c) Any officer of the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives may, during normal business 
hours, enter the premises of any person described in sub-
section (a) or (b) for the purposes of inspecting— 
‘‘(1) any records or information required to be 
maintained by such person under the provisions of 
law referred to in this chapter; or 
‘‘(2) any cigarettes or smokeless tobacco kept or 
stored by such person at such premises.’’. 
(b) PENALTIES.—Section 2344(b) of title 18, United 
States Code, is amended to read as follows: 
‘‘(b) Whoever knowingly violates any rule or regulation 
promulgated under section 2343 or 2346 or violates section 
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2342(b) shall be fined under this title or imprisoned not 
more than three years, or both.’’. 
SEC. 6. EXCLUSIONS REGARDING INDIAN TRIBES AND TRIB-
AL MATTERS. 
(a) IN GENERAL.—Nothing in this Act or the amend-
ments made by this Act is intended nor shall be construed 
to affect, amend, or modify— 
(1) any agreements, compacts, or other intergov-
ernmental arrangements between any State or local 
government and any government of an Indian tribe 
(as that term is defined in section 4(e) of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 450b(e))) relating to the collection of taxes on 
cigarettes or smokeless tobacco sold in Indian country; 
(2) any State laws that authorize or otherwise 
pertain to any such intergovernmental arrangements 
or create special rules or procedures for the collection 
of State, local, or tribal taxes on cigarettes or smoke-
less tobacco sold in Indian country; 
(3) any limitations under existing Federal or 
State law, including Federal common law and trea-
ties, on State, local, and tribal tax and regulatory au-
thority with respect to the sale, use, or distribution of 
cigarettes and smokeless tobacco by or to Indian 
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tribes, tribal members, tribal enterprises, or in Indian 
country; 
(4) any existing Federal law, including Federal 
common law and treaties, regarding State jurisdic-
tion, or lack thereof, over any tribe, tribal members, 
tribal enterprises, tribal reservations, or other lands 
held by the United States in trust for one or more In-
dian tribes; and 
(5) any existing State or local government au-
thority to bring enforcement actions against persons 
located in Indian country. 
(b) COORDINATION OF LAW ENFORCEMENT.—Nothing 
in this Act or the amendments made by this Act shall be 
construed to inhibit or otherwise affect any coordinated law 
enforcement effort by 1 or more States or other jurisdictions, 
including Indian tribes, through interstate compact or oth-
erwise, that— 
(1) provides for the administration of tobacco 
product laws or laws pertaining to interstate sales or 
other sales of tobacco products; 
(2) provides for the seizure of tobacco products or 
other property related to a violation of such laws; or 
(3) establishes cooperative programs for the ad-
ministration of such laws. 
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(c) TREATMENT
OF STATE
AND LOCAL GOVERN-
MENTS.—Nothing in this Act or the amendments made by 
this Act is intended, and shall not be construed to, author-
ize, deputize, or commission States or local governments as 
instrumentalities of the United States. 
(d) ENFORCEMENT WITHIN INDIAN COUNTRY.—Noth-
ing in this Act or the amendments made by this Act is in-
tended to prohibit, limit, or restrict enforcement by the At-
torney General of the United States of the provisions herein 
within Indian country. 
(e) AMBIGUITY.—Any ambiguity between the language 
of this section or its application and any other provision 
of this Act shall be resolved in favor of this section. 
SEC. 7. 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 introduced 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 
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certain tobacco products to citizens of the taxing States, and 
which gave authority to the Department of Justice and the 
Bureau of Alcohol, Tobacco and Firearms to enforce the 
Jenkins Act. In light of the unique harms and cir-
cumstances 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. 
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. 
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Union Calendar No. 537 
110TH CONGRESS 
2D SESSION 
H. R. 4081 
[Report No. 110–836] 
A BILL 
To prevent tobacco smuggling, to ensure the collec-
tion of all tobacco taxes, and for other purposes. 
SEPTEMBER 9, 2008 
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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