SECTION 1. SHORT TITLE; FINDINGS; PURPOSES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Prevent All Cigarette Trafficking Act of 2008’’ or 
‘‘PACT Act’’. 
(b) FINDINGS.—Congress finds that— 
(1) the sale of illegal cigarettes and smokeless 
tobacco products significantly reduces Federal, 
State, and local government revenues, with Internet 
sales alone accounting for billions of dollars of lost 
Federal, State, and local tobacco tax revenue each 
year; 
(2) Hezbollah, Hamas, al Qaeda, and other ter-
rorist organizations have profited from trafficking in 
illegal cigarettes or counterfeit cigarette tax stamps; 
(3) terrorist involvement in illicit cigarette traf-
ficking will continue to grow because of the large 
profits such organizations can earn; 
(4) the sale of illegal cigarettes and smokeless 
tobacco over the Internet, and through mail, fax, or 
phone orders, make it cheaper and easier for chil-
dren to obtain tobacco products; 
(5) the majority of Internet and other remote 
sales of cigarettes and smokeless tobacco are being 
made without adequate precautions to protect 
against sales to children, without the payment of ap-
plicable taxes, and without complying with the nomi-
nal registration and reporting requirements in exist-
ing Federal law; 
(6) unfair competition from illegal sales of ciga-
rettes and smokeless tobacco is taking billions of dol-
lars of sales away from law-abiding retailers 
throughout the United States; 
(7) with rising State and local tobacco tax 
rates, the incentives for the illegal sale of cigarettes 
and smokeless tobacco have increased; 
(8) the number of active tobacco investigations 
being conducted by the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives rose to 452 in 2005; 
(9) the number of Internet vendors in the 
United States and in foreign countries that sell ciga-
rettes and smokeless tobacco to buyers in the United 
States increased from only about 40 in 2000 to 
more than 500 in 2005; and 
(10) the intrastate sale of illegal cigarettes and 
smokeless tobacco over the Internet has a substan-
tial effect on interstate commerce. 
(c) PURPOSES.—It is the purpose of this Act to— 
(1) require Internet and other remote sellers of 
cigarettes and smokeless tobacco to comply with the 
same laws that apply to law-abiding tobacco retail-
ers;
(2) create strong disincentives to illegal smug-
gling of tobacco products; 
(3) provide government enforcement officials 
with more effective enforcement tools to combat to-
bacco smuggling; 
(4) make it more difficult for cigarette and 
smokeless tobacco traffickers to engage in and profit 
from their illegal activities; 
(5) increase collections of Federal, State, and 
local excise taxes on cigarettes and smokeless to-
bacco; and 
(6) prevent and reduce youth access to inexpen-
sive cigarettes and smokeless tobacco through illegal 
Internet or contraband sales. 
SEC. 2. COLLECTION OF STATE CIGARETTE AND SMOKE-
LESS TOBACCO TAXES. 
(a) DEFINITIONS.—The Act of October 19, 1949 (15 
U.S.C. 375 et seq.; commonly referred to as the ‘‘Jenkins 
Act’’) (referred to in this Act as the ‘‘Jenkins Act’’), is 
amended by striking the first section and inserting the fol-
lowing: 
‘‘SECTION 1. DEFINITIONS. 
‘‘As used in this Act, the following definitions apply: 
‘‘(1) ATTORNEY GENERAL.—The term ‘attorney 
general’, with respect to a State, means the attorney
general or other chief law enforcement officer of the 
State, or the designee of that officer. 
‘‘(2) CIGARETTE.— 
‘‘(A) IN GENERAL.—For purposes of this 
Act, the term ‘cigarette’ shall— 
‘‘(i) have the same meaning given that 
term in section 2341 of title 18, United 
States Code; and 
‘‘(ii) include ‘roll-your-own tobacco’ 
(as that term is defined in section 5702 of 
the Internal Revenue Code of 1986). 
‘‘(B) EXCEPTION.—For purposes of this 
Act, the term ‘cigarette’ does not include a 
‘cigar’, as that term is defined in section 5702 
of the Internal Revenue Code of 1986. 
‘‘(3) COMMON
CARRIER.—The term ‘common 
carrier’ means any person (other than a local mes-
senger service or the United States Postal Service) 
that holds itself out to the general public as a pro-
vider for hire of the transportation by water, land, 
or air of merchandise, whether or not the person ac-
tually operates the vessel, vehicle, or aircraft by 
which the transportation is provided, between a port 
or place and a port or place in the United States.
‘‘(4) CONSUMER.—The term ‘consumer’ means 
any person that purchases cigarettes or smokeless 
tobacco, but does not include any person lawfully op-
erating as a manufacturer, distributor, wholesaler, 
or retailer of cigarettes or smokeless tobacco. 
‘‘(5) 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 to the buyer by common carrier, 
private delivery service, or
other method of
remote delivery, or the seller is not in the phys-
ical presence of the buyer when the buyer ob-
tains possession of the cigarettes or smokeless 
tobacco. 
‘‘(6) DELIVERY
SELLER.—The term ‘delivery 
seller’ means a person who makes a delivery sale.
‘‘(7) INDIAN
COUNTRY.—The term ‘Indian 
country’ means— 
‘‘(A) Indian country as defined in section 
1151of title 18, United States Code, except that 
within the State of Alaska that term applies 
only to the Metlakatla Indian Community, An-
nette Island Reserve; and 
‘‘(B) any other land held by the United 
States in trust or restricted status for one or 
more Indian tribes. 
‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’, 
‘tribe’, or ‘tribal’ refers to an Indian tribe as defined 
in section 4(e) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b(e)) or as 
listed pursuant to section 104 of the Federally Rec-
ognized Indian Tribe List Act of 1994 (25 U.S.C. 
479a–1). 
‘‘(9) 
INTERSTATE
COMMERCE.—The 
term 
‘interstate commerce’ means commerce between a 
State and any place outside the State, commerce be-
tween a State and any Indian country in the State, 
or commerce between points in the same State but 
through any place outside the State or through any 
Indian country.
‘‘(10) PERSON.—The term ‘person’ means an 
individual, corporation, company, association, firm, 
partnership, society, State government, local govern-
ment, Indian tribal government, governmental orga-
nization of such government, or joint stock company. 
‘‘(11) STATE.—The term ‘State’ means each of 
the several States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, or 
any territory or possession of the United States. 
‘‘(12) 
SMOKELESS
TOBACCO.—The 
term 
‘smokeless tobacco’ means any finely cut, ground, 
powdered, or leaf tobacco, or other product con-
taining tobacco, that is intended to be placed in the 
oral or nasal cavity or otherwise consumed without 
being combusted. 
‘‘(13) TOBACCO
TAX
ADMINISTRATOR.—The 
term ‘tobacco tax administrator’ means the State, 
local, or tribal official duly authorized to collect the 
tobacco tax or administer the tax law of a State, lo-
cality, or tribe, respectively. 
‘‘(14) TRIBAL ENTERPRISE.—The term ‘tribal 
enterprise’ means any business enterprise, incor-
porated or unincorporated under federal or tribal 
law, of an Indian tribe or group of Indian tribe.
‘‘(15) USE.—The term ‘use’, in addition to its 
ordinary meaning, means the consumption, storage, 
handling, or disposal of cigarettes or smokeless to-
bacco.’’. 
(b) REPORTS TO STATE TOBACCO TAX ADMINISTRA-
TORS.—Section 2 of the Jenkins Act (15 U.S.C. 376) is 
amended— 
(1) by striking ‘‘cigarettes’’ each place it ap-
pears and inserting ‘‘cigarettes or smokeless to-
bacco’’; 
(2) in subsection (a)— 
(A) in the matter preceding paragraph 
(1)— 
(i) by inserting ‘‘CONTENTS.—’’ after 
‘‘(a)’’ 
(ii) by striking ‘‘or transfers’’ and in-
serting ‘‘, transfers, or ships’’; 
(iii) by inserting ‘‘, locality, or Indian 
country of an Indian tribe’’ after ‘‘a 
State’’; 
(iv) by striking ‘‘to other than a dis-
tributor licensed by or located in such 
State,’’; and
(v) by striking ‘‘or transfer and ship-
ment’’ and inserting ‘‘, transfer, or ship-
ment’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘with the tobacco tax 
administrator of the State’’ and inserting 
‘‘with the Attorney General of the United 
States and with the tobacco tax adminis-
trators of the State and place’’; and 
(ii) by striking ‘‘; and’’ and inserting 
the following: ‘‘, as well as telephone num-
bers for each place of business, a principal 
electronic mail address, any website ad-
dresses, and the name, address, and tele-
phone number of an agent in the State au-
thorized to accept service on behalf of such 
person;’’; 
(C) in paragraph (2), by striking ‘‘and the 
quantity thereof.’’ and inserting ‘‘the quantity 
thereof, and the name, address, and phone 
number of the person delivering the shipment to 
the recipient on behalf of the delivery seller, 
with all invoice or memoranda information re-
lating to specific customers to be organized by 
city or town and by zip code; and’’; and
(D) by adding at the end the following: 
‘‘(3) with respect to each memorandum or in-
voice filed with a State under paragraph (2), also 
file copies of such memorandum or invoice with the 
tobacco tax administrators and chief law enforce-
ment officers of the local governments and Indian 
tribes operating within the borders of the State that 
apply their own local or tribal taxes on cigarettes or 
smokeless tobacco.’’; 
(3) in subsection (b)— 
(A) by inserting ‘‘PRESUMPTIVE
EVI-
DENCE.—’’ after ‘‘(b)’’; 
(B) by striking ‘‘(1) that’’ and inserting 
‘‘that’’; and 
(C) by striking ‘‘, and (2)’’ and all that 
follows and inserting a period; and 
(4) by adding at the end the following: 
‘‘(c) USE OF INFORMATION.—A tobacco tax adminis-
trator or chief law enforcement officer who receives a 
memorandum or invoice under paragraph (2) or (3) of 
subsection (a) shall use such memorandum or invoice sole-
ly for the purposes of the enforcement of this Act and the 
collection of any taxes owed on related sales of cigarettes 
and smokeless tobacco, and shall keep confidential any
personal information in such memorandum or invoice not 
otherwise required for such purposes.’’. 
(c) REQUIREMENTS
FOR DELIVERY SALES.—The 
Jenkins Act is amended by inserting after section 2 the 
following: 
‘‘SEC. 2A. DELIVERY SALES. 
‘‘(a) IN GENERAL.—With respect to delivery sales 
into a specific State and place, each delivery seller shall 
comply with— 
‘‘(1) the shipping requirements set forth in sub-
section (b); 
‘‘(2) the recordkeeping requirements set forth 
in subsection (c); 
‘‘(3) all State, local, tribal, and other laws gen-
erally applicable to sales of cigarettes or smokeless 
tobacco as if such delivery sales occurred entirely 
within the specific State and place, including laws 
imposing— 
‘‘(A) excise taxes; 
‘‘(B) licensing and tax-stamping require-
ments; 
‘‘(C) restrictions on sales to minors; and 
‘‘(D) other payment obligations or legal re-
quirements relating to the sale, distribution, or 
delivery of cigarettes or smokeless tobacco; and
‘‘(4) the tax collection requirements set forth in 
subsection (d). 
‘‘(b) SHIPPING AND PACKAGING.— 
‘‘(1) REQUIRED
STATEMENT.—For any ship-
ping package containing cigarettes or smokeless to-
bacco, the delivery seller shall include on the bill of 
lading, if any, and on the outside of the shipping 
package, on the same surface as the delivery ad-
dress, a clear and conspicuous statement providing 
as 
follows: 
‘CIGARETTES/SMOKELESS 
TO-
BACCO: FEDERAL LAW REQUIRES THE PAY-
MENT OF ALL APPLICABLE EXCISE TAXES, 
AND COMPLIANCE WITH APPLICABLE LI-
CENSING 
AND 
TAX–STAMPING 
OBLIGA-
TIONS’. 
‘‘(2) FAILURE TO LABEL.—Any shipping pack-
age described in paragraph (1) that is not labeled in 
accordance with that paragraph shall be treated as 
nondeliverable matter by a common carrier or other 
delivery service, if the common carrier or other deliv-
ery service knows or should know the package con-
tains cigarettes or smokeless tobacco. If a common 
carrier or other delivery service believes a package is 
being submitted for delivery in violation of para-
graph (1), it may require the person submitting the
package for delivery to establish that it is not being 
sent in violation of paragraph (1) before accepting 
the package for delivery. Nothing in this paragraph 
shall require the common carrier or other delivery 
service to open any package to determine its con-
tents. 
‘‘(3) WEIGHT RESTRICTION.—A delivery seller 
shall not sell, offer for sale, deliver, or cause to be 
delivered in any single sale or single delivery any 
cigarettes or smokeless tobacco weighing more than 
10 pounds. 
‘‘(4) AGE VERIFICATION.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, a delivery seller who 
mails or ships tobacco products— 
‘‘(i) shall not sell, deliver, or cause to 
be delivered any tobacco products to a per-
son under the minimum age required for 
the legal sale or purchase of tobacco prod-
ucts, as determined by the applicable law 
at the place of delivery; 
‘‘(ii) shall use a method of mailing or 
shipping that requires— 
‘‘(I) the purchaser placing the 
delivery sale order, or an adult who is
at least the minimum age required for 
the legal sale or purchase of tobacco 
products, as determined by the appli-
cable law at the place of delivery, to 
sign to accept delivery of the shipping 
container at the delivery address; and 
‘‘(II) the person who signs to ac-
cept delivery of the shipping container 
to provide proof, in the form of a 
valid, government-issued identification 
bearing a photograph of the indi-
vidual, that the person is at least the 
minimum age required for the legal 
sale or purchase of tobacco products, 
as determined by the applicable law at 
the place of delivery; and 
‘‘(iii) shall not accept a delivery sale 
order from a person without— 
‘‘(I) obtaining the full name, 
birth date, and residential address of 
that person; and 
‘‘(II) verifying the information 
provided in subclause (I), through the 
use of a commercially available data-
base or aggregate of databases, con-
sisting primarily of data from govern-
ment sources, that are regularly used 
by government and businesses for the 
purpose 
of 
age 
and 
identity 
verification and authentication, to en-
sure that the purchaser is at least the 
minimum age required for the legal 
sale or purchase of tobacco products, 
as determined by the applicable law at 
the place of delivery. 
‘‘(B) LIMITATION.—No database being 
used for age and identity verification under 
subparagraph (A)(iii) shall be in the possession 
or under the control of the delivery seller, or be 
subject to any changes or supplementation by 
the delivery seller. 
‘‘(c) RECORDS.— 
‘‘(1) IN GENERAL.—Each delivery seller shall 
keep a record of any delivery sale, including all of 
the information described in section 2(a)(2), orga-
nized by the State, and within such State, by the 
city or town and by zip code, into which such deliv-
ery sale is so made. 
‘‘(2) RECORD RETENTION.—Records of a deliv-
ery sale shall be kept as described in paragraph (1)
in the year in which the delivery sale is made and 
for the next 4 years. 
‘‘(3) ACCESS
FOR
OFFICIALS.—Records kept 
under paragraph (1) shall be made available to to-
bacco tax administrators of the States, to local gov-
ernments and Indian tribes that apply their own 
local or tribal taxes on cigarettes or smokeless to-
bacco, to the attorneys general of the States, to the 
chief law enforcement officers of such local govern-
ments and Indian tribes, and to the Attorney Gen-
eral of the United States in order to ensure the com-
pliance of persons making delivery sales with the re-
quirements of this Act. 
‘‘(d) DELIVERY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no delivery seller may sell or deliver to 
any consumer, or tender to any common carrier or 
other delivery service, any cigarettes or smokeless to-
bacco pursuant to a delivery sale unless, in advance 
of the sale, delivery, or tender— 
‘‘(A) any cigarette or smokeless tobacco ex-
cise tax that is imposed by the State in which 
the cigarettes or smokeless tobacco are to be 
delivered has been paid to the State;
‘‘(B) any cigarette or smokeless tobacco 
excise tax that is imposed by the local govern-
ment of the place in which the cigarettes or 
smokeless tobacco are to be delivered has been 
paid to the local government; and 
‘‘(C) any required stamps or other indicia 
that such excise tax has been paid are properly 
affixed or applied to the cigarettes or smokeless 
tobacco. 
‘‘(2) EXCEPTION.—Paragraph (1) does not 
apply to a delivery sale of smokeless tobacco if the 
law of the State or local government of the place 
where the smokeless tobacco is to be delivered re-
quires or otherwise provides that delivery sellers col-
lect the excise tax from the consumer and remit the 
excise tax to the State or local government, and the 
delivery seller complies with the requirement. 
‘‘(e) LIST OF UNREGISTERED OR NONCOMPLIANT 
DELIVERY SELLERS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) INITIAL
LIST.—Not later than 90 
days after this subsection goes into effect under 
the Prevent All Cigarette Trafficking Act of 
2008, the Attorney General of the United 
States shall compile a list of delivery sellers of
graph (A) any noncomplying delivery sellers 
identified by any State, local, or tribal govern-
ment under paragraph (5), and shall distribute 
the list to the attorney general or chief law en-
forcement official and the tax administrator of 
any government submitting any such informa-
tion and to any common carriers or other per-
sons who deliver small packages to consumers 
identified by any government pursuant to para-
graph (5). 
‘‘(E) ACCURACY AND COMPLETENESS OF 
LIST OF NONCOMPLYING DELIVERY SELLERS.— 
In preparing and revising the list required by 
subparagraph (A), the Attorney General shall— 
‘‘(i) use reasonable procedures to en-
sure maximum possible accuracy and com-
pleteness of the records and information 
relied on for the purpose of determining 
that such delivery seller is noncomplying; 
‘‘(ii) not later than 14 days prior to 
including any delivery seller on the list 
under paragraph (1), make a reasonable 
attempt to send notice to the delivery seller 
by letter, electronic mail, or other means 
that the delivery seller is being placed on
such list or update, with that notice citing 
the relevant provisions of this Act and the 
specific reasons for being placed on such 
list; 
‘‘(iii) provide an opportunity to such 
delivery seller to challenge placement on 
such list; 
‘‘(iv) investigate each such challenge 
by contacting the relevant Federal, State, 
tribal, and local law enforcement officials, 
and provide the specific findings and re-
sults of such investigation to such delivery 
seller not later than 30 days after the chal-
lenge is made; and 
‘‘(v) upon finding that any placement 
is inaccurate, incomplete, or cannot be 
verified, promptly delete such delivery sell-
er from the list as appropriate and notify 
each appropriate Federal, State, tribal, 
and local authority of such finding. 
‘‘(F) CONFIDENTIALITY.—The list distrib-
uted pursuant to subparagraph (A) shall be 
confidential, and any person receiving the list 
shall maintain the confidentiality of the list but 
may deliver the list, for enforcement purposes,
to any government official or to any common 
carrier or other person that delivers tobacco 
products or small packages to consumers. Noth-
ing in this section shall prohibit a common car-
rier, the United States Postal Service, or any 
other person receiving the list from discussing 
with the listed delivery sellers the delivery sell-
ers’ inclusion on the list and the resulting ef-
fects on any services requested by such listed 
delivery seller. 
‘‘(2) PROHIBITION ON DELIVERY.— 
‘‘(A) IN GENERAL.—Commencing on the 
date that is 60 days after the date of the initial 
distribution or availability of the list under 
paragraph (1)(A), no person who receives the 
list under paragraph (1), and no person who 
delivers cigarettes or smokeless tobacco to con-
sumers, shall knowingly complete, cause to be 
completed, or complete its portion of a delivery 
of any package for any person whose name and 
address are on the list, unless— 
‘‘(i) the person making the delivery 
knows or believes in good faith that the 
item does not include cigarettes or smoke-
less tobacco;
‘‘(ii) the delivery is made to a person 
lawfully engaged in the business of manu-
facturing, distributing, or selling cigarettes 
or smokeless tobacco; or 
‘‘(iii) the package being delivered 
weighs more than 100 pounds and the per-
son making the delivery does not know or 
have reasonable cause to believe that the 
package contains cigarettes or smokeless 
tobacco. 
‘‘(B) IMPLEMENTATION
OF
UPDATES.— 
Commencing on the date that is 30 days after 
the date of the distribution or availability of 
any updates or corrections to the list under 
paragraph (1), all recipients and all common 
carriers or other persons that deliver cigarettes 
or smokeless tobacco to consumers shall be sub-
ject to subparagraph (A) in regard to such cor-
rections or updates. 
‘‘(C) EXEMPTIONS.—Subparagraphs (A) 
and (B), subsection (b)(2), and any other re-
quirements or restrictions placed directly on 
common carriers elsewhere in this subsection, 
shall not apply to a common carrier that is sub-
ject to a settlement agreement relating to to-
bacco product deliveries to consumers.
For the 
purposes of this section, ‘settlement agreement’ 
shall be defined to include the Assurance of 
Discontinuance entered into by the Attorney 
General of New York and DHL Holdings USA, 
Inc. and DHL Express (USA), Inc. on or about 
July 1, 2005, the Assurance of Discontinuance 
entered into by the Attorney General of New 
York and United Parcel Service, Inc. on or 
about October 21, 2005,
and the Assurance of 
Compliance entered into by the Attorney Gen-
eral of New York and Federal Express Corpora-
tion and Fed Ex Ground package Systems, Inc. 
on or about February 3, 2006,
so long as
each is
honored nationwide to block illegal de-
liveries of cigarettes or smokeless tobacco to 
consumers, and also includes any other active 
agreement between a common carrier and the 
states that operates nationwide to ensure that 
no deliveries of cigarettes and smokeless to-
bacco shall be made to consumers
for illegally 
operating Internet or mail-order sellers and 
that any such deliveries to consumers
shall 
not be made to minors or without payment to
the states and localities where the consumers 
are located of all taxes on the tobacco products. 
‘‘(3) SHIPMENTS FROM PERSONS ON LIST.— 
‘‘(A) IN GENERAL.—In the event that a 
common carrier or other delivery service delays 
or interrupts the delivery of a package it has in 
its possession because it determines or has rea-
son to believe that the person ordering the de-
livery is on a list distributed under paragraph 
(1)— 
‘‘(i) the person ordering the delivery 
shall be obligated to pay— 
‘‘(I) the common carrier or other 
delivery service as if the delivery of 
the package had been timely com-
pleted; and 
‘‘(II) if the package is not deliv-
erable, any reasonable additional fee 
or charge levied by the common car-
rier or other delivery service to cover 
its extra costs and inconvenience and 
to serve as a disincentive against such 
noncomplying delivery orders; and 
‘‘(ii) if the package is determined not 
to be deliverable, the common carrier or
other delivery service shall, in its discre-
tion, either provide the package and its 
contents to a Federal, State, or local law 
enforcement agency or destroy the package 
and its contents. 
‘‘(B) RECORDS.—A common carrier or 
other delivery service shall maintain, for a pe-
riod of 5 years, any records kept in the ordi-
nary course of business relating to any deliv-
eries interrupted pursuant to this paragraph 
and provide that information, upon request, to 
the Attorney General of the United States or to 
the attorney general or chief law enforcement 
official or tax administrator of any State, local, 
or tribal government. 
‘‘(C) CONFIDENTIALITY.—Any person re-
ceiving records under subparagraph (B) shall 
use such records solely for the purposes of the 
enforcement of this Act and the collection of 
any taxes owed on related sales of cigarettes 
and smokeless tobacco, and the person receiving 
records under subparagraph (B) shall keep con-
fidential any personal information in such 
records not otherwise required for such pur-
poses.
‘‘(4) PREEMPTION.— 
‘‘(A) IN
GENERAL.—No State, local, or 
tribal government, nor any political authority of 
2 or more State, local, or tribal governments, 
may enact or enforce any law or regulation re-
lating to delivery sales that restricts deliveries 
of cigarettes or smokeless tobacco to consumers 
by common carriers or other delivery services 
on behalf of delivery sellers by— 
‘‘(i) requiring that the common carrier 
or other delivery service verify the age or 
identity of the consumer accepting the de-
livery by requiring the person who signs to 
accept delivery of the shipping container to 
provide proof, in the form of a valid, gov-
ernment-issued identification bearing a 
photograph of the individual, that such 
person is at least the minimum age re-
quired for the legal sale or purchase of to-
bacco products, as determined by either 
State or local law at the place of delivery; 
‘‘(ii) requiring that the common car-
rier or other delivery service obtain a sig-
nature from the consumer accepting the 
delivery;
‘‘(iii) requiring that the common car-
rier or other delivery service verify that all 
applicable taxes have been paid; 
‘‘(iv) requiring that packages delivered 
by the common carrier or other delivery 
service contain any particular labels, no-
tice, or markings; or 
‘‘(v) prohibiting common carriers or 
other delivery services from making deliv-
eries on the basis of whether the delivery 
seller is or is not identified on any list of 
delivery sellers maintained and distributed 
by any entity other than the Federal Gov-
ernment. 
‘‘(B) RELATIONSHIP TO OTHER LAWS.— 
Except as provided in subparagraph (C), noth-
ing in this paragraph shall be construed to pro-
hibit, expand, restrict, or otherwise amend or 
modify— 
‘‘(i) 
section 
14501(c)(1) 
or 
41713(b)(4) of title 49, United States 
Code; 
‘‘(ii) any other restrictions in Federal 
law on the ability of State, local, or tribal
governments to regulate common carriers; 
or 
‘‘(iii) any provision of State, local, or 
tribal law regulating common carriers that 
falls within the provisions of sections 
14501(c)(2) or 41713(b)(4)(B) of title 49 
of the United States Code. 
‘‘(C) STATE LAWS PROHIBITING DELIVERY 
SALES.—Nothing in the Prevent All Cigarette 
Trafficking Act of 2008, the amendments made 
by that Act, or in any other Federal statute 
shall be construed to preempt, supersede, or 
otherwise limit or restrict State laws prohibiting 
the delivery sale, or the shipment or delivery 
pursuant to a delivery sale, of cigarettes or 
other tobacco products to individual consumers 
or personal residences. 
‘‘(5) STATE, LOCAL, AND TRIBAL ADDITIONS.— 
‘‘(A) IN GENERAL.—Any State, local, or 
tribal government shall provide the Attorney 
General of the United States with— 
‘‘(i) all known names, addresses, 
website addresses, and other primary con-
tact information of any delivery seller that 
offers for sale or makes sales of cigarettes
or smokeless tobacco in or into the State, 
locality, or tribal land but has failed to 
register with or make reports to the re-
spective tax administrator, as required by 
this Act, or that has been found in a legal 
proceeding to have otherwise failed to com-
ply with this Act; and 
‘‘(ii) a list of common carriers and 
other persons who make deliveries of ciga-
rettes or smokeless tobacco in or into the 
State, locality, or tribal lands. 
‘‘(B) UPDATES.—Any government pro-
viding a list to the Attorney General of the 
United States under subparagraph (A) shall 
also provide updates and corrections every 4 
months until such time as such government no-
tifies the Attorney General of the United States 
in writing that such government no longer de-
sires to submit such information to supplement 
the list maintained and distributed by the At-
torney General of the United States under 
paragraph (1). 
‘‘(C) REMOVAL
AFTER
WITHDRAWAL.— 
Upon receiving written notice that a govern-
ment no longer desires to submit information
under subparagraph (A), the Attorney General 
of the United States shall remove from the list 
under paragraph (1) any persons that are on 
the list solely because of such government’s 
prior submissions of its list of noncomplying de-
livery sellers of cigarettes or smokeless tobacco 
or its subsequent updates and corrections. 
‘‘(6) 
DEADLINE
TO
INCORPORATE
ADDI-
TIONS.—The Attorney General of the United States 
shall— 
‘‘(A) include any delivery seller identified 
and submitted by a State, local, or tribal gov-
ernment under paragraph (5) in any list or up-
date that is distributed or made available under 
paragraph (1) on or after the date that is 30 
days after the date on which the information is 
received by the Attorney General of the United 
States; and 
‘‘(B) distribute any such list or update to 
any common carrier or other person who makes 
deliveries of cigarettes or smokeless tobacco 
that has been identified and submitted by an-
other government, pursuant to paragraph (5). 
‘‘(7) NOTICE
TO
DELIVERY
SELLERS.—Not 
later than 14 days prior to including any delivery
seller on the initial list distributed or made available 
under paragraph (1), or on any subsequent list or 
update for the first time, the Attorney General of 
the United States shall make a reasonable attempt 
to send notice to the delivery seller by letter, elec-
tronic mail, or other means that the delivery seller 
is being placed on such list or update, with that no-
tice citing the relevant provisions of this Act. 
‘‘(8) LIMITATIONS.— 
‘‘(A) IN GENERAL.—Any common carrier 
or other person making a delivery subject to 
this subsection shall not be required or other-
wise obligated to— 
‘‘(i) determine whether any list dis-
tributed or made available under para-
graph (1) is complete, accurate, or up-to- 
date; 
‘‘(ii) determine whether a person or-
dering a delivery is in compliance with this 
Act; or 
‘‘(iii) open or inspect, pursuant to this 
Act, any package being delivered to deter-
mine its contents. 
‘‘(B) ALTERNATE
NAMES.—Any common 
carrier or other person making a delivery sub-
ject to this subsection shall not be required or 
otherwise obligated to make any inquiries or 
otherwise determine whether a person ordering 
a delivery is a delivery seller on the list under 
paragraph (1) who is using a different name or 
address in order to evade the related delivery 
restrictions, but shall not knowingly deliver any 
packages to consumers for any such delivery 
seller who the common carrier or other delivery 
service knows is a delivery seller who is on the 
list under paragraph (1) but is using a different 
name or address to evade the delivery restric-
tions of paragraph (2). 
‘‘(C) PENALTIES.—Any common carrier or 
person in the business of delivering packages on 
behalf of other persons shall not be subject to 
any penalty under section 14101(a) of title 49, 
United States Code, or any other provision of 
law for— 
‘‘(i) not making any specific delivery, 
or any deliveries at all, on behalf of any 
person on the list under paragraph (1); 
‘‘(ii) not, as a matter of regular prac-
tice and procedure, making any deliveries, 
or any deliveries in certain States, of any
cigarettes or smokeless tobacco for any 
person or for any person not in the busi-
ness of manufacturing, distributing, or 
selling cigarettes or smokeless tobacco; or 
‘‘(iii) delaying or not making a deliv-
ery for any person because of reasonable 
efforts to comply with this Act. 
‘‘(D) OTHER LIMITS.—Section 2 and sub-
sections (a), (b), (c), and (d) of this section 
shall not be interpreted to impose any respon-
sibilities, requirements, or liability on common 
carriers. 
‘‘(f) PRESUMPTION.—For purposes of this Act, a de-
livery sale shall be deemed to have occurred in the State 
and place where the buyer obtains personal possession of 
the cigarettes or smokeless tobacco, and a delivery pursu-
ant to a delivery sale is deemed to have been initiated or 
ordered by the delivery seller.’’. 
(d) PENALTIES.—The Jenkins Act is amended by 
striking section 3 and inserting the following: 
‘‘SEC. 3. PENALTIES. 
‘‘(a) CRIMINAL PENALTIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), whoever violates any provision of this Act 
shall be guilty of a felony and shall be imprisoned
not more than 3 years, fined under title 18, United 
States Code, or both. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) GOVERNMENTS.—Paragraph (1) shall 
not apply to a State, local, or tribal govern-
ment. 
‘‘(B) DELIVERY VIOLATIONS.—A common 
carrier or independent delivery service, or em-
ployee of a common carrier or independent de-
livery service, shall be subject to criminal pen-
alties under paragraph (1) for a violation of 
section 2A(e) only if the violation is committed 
intentionally— 
‘‘(i) as consideration for the receipt 
of, or as consideration for a promise or 
agreement to pay, anything of pecuniary 
value; or 
‘‘(ii) for the purpose of assisting a de-
livery seller to violate, or otherwise evading 
compliance with, section 2A. 
‘‘(b) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), whoever violates any provision of this Act 
shall be subject to a civil penalty in an amount not 
to exceed—
‘‘(A) in the case of a delivery seller, the 
greater of— 
‘‘(i) $5,000 in the case of the first 
violation, or $10,000 for any other viola-
tion; or 
‘‘(ii) for any violation, 2 percent of 
the gross sales of cigarettes or smokeless 
tobacco of such person during the 1-year 
period ending on the date of the violation. 
‘‘(B) in the case of a common carrier or 
other delivery service, $2,500 in the case of a 
first violation, or $5,000 for any violation with-
in 1 year of a prior violation. 
‘‘(2) RELATION TO OTHER PENALTIES.—A civil 
penalty under paragraph (1) for a violation of this 
Act shall be imposed in addition to any criminal 
penalty under subsection (a) and any other damages, 
equitable relief, or injunctive relief awarded by the 
court, including the payment of any unpaid taxes to 
the appropriate Federal, State, local, or tribal gov-
ernments. 
‘‘(3) EXCEPTIONS.— 
‘‘(A) DELIVERY
VIOLATIONS.—An em-
ployee of a common carrier or independent de-
livery service shall be subject to civil penalties
under paragraph (1) for a violation of section 
2A(e) only if the violation is committed inten-
tionally— 
‘‘(i) as consideration for the receipt 
of, or as consideration for a promise or 
agreement to pay, anything of pecuniary 
value; or 
‘‘(ii) for the purpose of assisting a de-
livery seller to violate, or otherwise evading 
compliance with, section 2A. 
‘‘(B) OTHER
LIMITATIONS.—No common 
carrier or independent delivery service shall be 
subject to civil penalties under paragraph (1) 
for a violation of section 2A(e) if— 
‘‘(i) the common carrier or inde-
pendent delivery service has implemented 
and enforces effective policies and practices 
for complying with that section; or 
‘‘(ii) an employee of the common car-
rier or independent delivery service who 
physically receives and processes orders, 
picks up packages, processes packages, or 
makes deliveries, takes actions that are 
outside the scope of employment of the em-
ployee in the course of the violation, or
that violate the implemented and enforced 
policies of the common carrier or inde-
pendent delivery service described in clause 
(i).’’. 
(e) ENFORCEMENT.—The Jenkins Act is amended by 
striking section 4 and inserting the following: 
‘‘SEC. 4. ENFORCEMENT. 
‘‘(a) IN
GENERAL.—The United States district 
courts shall have jurisdiction to prevent and restrain viola-
tions of this Act and to provide other appropriate injunc-
tive or equitable relief, including money damages, for such 
violations. 
‘‘(b) AUTHORITY OF THE ATTORNEY GENERAL.— 
The Attorney General of the United States shall admin-
ister and enforce the provisions of this Act. 
‘‘(c) STATE, LOCAL, AND TRIBAL ENFORCEMENT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) STANDING.—A State, through its at-
torney general (or a designee thereof), or a 
local government or Indian tribe that levies a 
tax subject to section 2A(a)(3), through its 
chief law enforcement officer (or a designee 
thereof), may bring an action in a United 
States district court to prevent and restrain vio-
lations of this Act by any person (or by any
person controlling such person) or to obtain any 
other appropriate relief from any person (or 
from any person controlling such person) for 
violations of this Act, including civil penalties, 
money damages, and injunctive or other equi-
table relief. 
‘‘(B) SOVEREIGN IMMUNITY.—Nothing in 
this Act shall be deemed to abrogate or con-
stitute a waiver of any sovereign immunity of a 
State or local government or Indian tribe 
against any unconsented lawsuit under this Act, 
or otherwise to restrict, expand, or modify any 
sovereign immunity of a State or local govern-
ment or Indian tribe. 
‘‘(2) PROVISION
OF
INFORMATION.—A State, 
through its attorney general, or a local government 
or Indian tribe that levies a tax subject to section 
2A(a)(3), through its chief law enforcement officer 
(or a designee thereof), may provide evidence of a 
violation of this Act by any person not subject to 
State, local, or tribal government enforcement ac-
tions for violations of this Act to the Attorney Gen-
eral of the United States or a United States attor-
ney, who shall take appropriate actions to enforce 
the provisions of this Act.
‘‘(3) USE OF PENALTIES COLLECTED.— 
‘‘(A) IN GENERAL.—There is established a 
separate account in the Treasury known as the 
‘PACT 
Anti-Trafficking 
Fund’. 
Notwith-
standing any other provision of law and subject 
to subparagraph (B), an amount equal to 50 
percent of any criminal and civil penalties col-
lected by the United States Government in en-
forcing the provisions of this Act shall be trans-
ferred into the PACT Anti-Trafficking Fund 
and shall be available to the Attorney General 
of the United States for purposes of enforcing 
the provisions of this Act and other laws relat-
ing to contraband tobacco products. 
‘‘(B) ALLOCATION
OF
FUNDS.—Of the 
amount available to the Attorney General under 
subparagraph (A), not less than 50 percent 
shall be made available only to the agencies and 
offices within the Department of Justice that 
were responsible for the enforcement actions in 
which the penalties concerned were imposed or 
for any underlying investigations. 
‘‘(4) NONEXCLUSIVITY OF REMEDY.— 
‘‘(A) IN
GENERAL.—The remedies avail-
able under this section and section 3 are in ad-
dition to any other remedies available under 
Federal, State, local, tribal, or other law. 
‘‘(B) STATE COURT PROCEEDINGS.—Noth-
ing in this Act shall be construed to expand, re-
strict, or otherwise modify any right of an au-
thorized State official to proceed in State court, 
or take other enforcement actions, on the basis 
of an alleged violation of State or other law. 
‘‘(C) 
TRIBAL
COURT
PROCEEDINGS.— 
Nothing in this Act shall be construed to ex-
pand, restrict, or otherwise modify any right of 
an authorized Indian tribal government official 
to proceed in tribal court, or take other enforce-
ment actions, on the basis of an alleged viola-
tion of tribal law. 
‘‘(D) 
LOCAL
GOVERNMENT
ENFORCE-
MENT.—Nothing in this Act shall be construed 
to expand, restrict, or otherwise modify any 
right of an authorized local government official 
to proceed in State court, or take other enforce-
ment actions, on the basis of an alleged viola-
tion of local or other law. 
‘‘(d) PERSONS DEALING IN TOBACCO PRODUCTS.— 
Any person who holds a permit under section 5712 of the 
Internal Revenue Code of 1986 (regarding permitting of
manufacturers and importers of tobacco products and ex-
port warehouse proprietors) may bring an action in a 
United States district court to prevent and restrain viola-
tions of this Act by any person (or by any person control-
ling such person) other than a State, local, or tribal gov-
ernment. 
‘‘(e) NOTICE.— 
‘‘(1) PERSONS
DEALING
IN
TOBACCO
PROD-
UCTS.—Any person who commences a civil action 
under subsection (d) shall inform the Attorney Gen-
eral of the United States of the action. 
‘‘(2) STATE, LOCAL, AND TRIBAL ACTIONS.—It 
is the sense of Congress that the attorney general of 
any State, or chief law enforcement officer of any lo-
cality or tribe, that commences a civil action under 
this section should inform the Attorney General of 
the United States of the action. 
‘‘(f) PUBLIC NOTICE.— 
‘‘(1) IN GENERAL.—The Attorney General of 
the United States shall make available to the public, 
by posting such information on the Internet and by 
other appropriate means, information regarding all 
enforcement actions undertaken by the Attorney 
General or United States attorneys, or reported to 
the Attorney General, under this section, including
information regarding the resolution of such actions 
and how the Attorney General and the United States 
attorney have responded to referrals of evidence of 
violations pursuant to subsection (c)(2). 
‘‘(2) REPORTS
TO
CONGRESS.—The Attorney 
General shall submit to Congress each year a report 
containing the information described in paragraph 
(1).’’. 
SEC. 3. TREATMENT OF CIGARETTES AND SMOKELESS TO-
BACCO AS NONMAILABLE MATTER. 
(a) IN GENERAL.—Chapter 83 of title 18, United 
States Code, is amended by inserting after section 1716D 
the following: 
‘‘§ 1716E. Tobacco products as nonmailable 
‘‘(a) PROHIBITION.—All cigarettes (as that term is 
defined in section 1 of the Act of October 19, 1949, com-
monly referred to as the Jenkins Act) and smokeless to-
bacco (as that term is defined in section 1 of the Act of 
October 19, 1949, commonly referred to as the Jenkins 
Act) are nonmailable and shall not be deposited in or car-
ried through the mails. 
‘‘(b) ORDERS.— 
‘‘(1) If the Postal Service has reasonable cause 
to believe that any person is engaged in the sending
of mail matter which is nonmailable under this sec-
tion, the Postal Service may issue an order which— 
‘‘(A) directs any postmaster, to whom any 
mailing originating with such person or his rep-
resentative is tendered for transmission through 
the mails (other than a mailing that consists 
only of one or more sealed letters), to refuse to 
accept any such mailing, unless such person or 
his representative first establishes to the satis-
faction of the postmaster that the mailing does 
not contain any matter which is nonmailable 
under this section; and 
‘‘(B) requires the person or his representa-
tive to cease and desist from mailing any mail 
matter which is nonmailable under this section. 
‘‘(2) For the purposes of paragraph (1) reason-
able cause includes— 
‘‘(A) a statement on a publicly available 
website, or an advertisement, by any person 
that such person will mail matter which is non-
mailable under this section in return for pay-
ment; and 
‘‘(B) the placement of the person on the 
list created under section 2A(e) of the Jenkins 
Act.
‘‘(3) Whoever fails to comply with an order 
issued under this subsection shall be liable to the 
United States for a civil penalty— 
‘‘(A) not to exceed $10,000 for each mail-
ing of fewer than 10 pieces; 
‘‘(B) not to exceed $50,000 for each mail-
ing of 10 to 50 pieces; and 
‘‘(C) not to exceed $100,000 for each mail-
ing of more than 50 pieces. 
‘‘(4) An order under this subsection may be en-
forced in the same manner as an order under section 
3005 of title 39. 
‘‘(c) EXCEPTIONS.—This section shall not apply to 
the following: 
‘‘(1) CIGARS.—Cigars (as that term is defined 
in section 5702(a) of the Internal Revenue Code of 
1986). 
‘‘(2) GEOGRAPHIC EXCEPTION.—Mailings with-
in the State of Alaska or within the State of Hawaii. 
‘‘(3) BUSINESS PURPOSES.—Tobacco products 
mailed only for business purposes between legally 
operating businesses that have all applicable State 
and Federal government licenses or permits and are 
engaged in tobacco product manufacturing, distribu-
tion, wholesale, export, import, testing, investigation,
or research, or for regulatory purposes between any 
such businesses and State or Federal Government 
regulatory agencies, if the Postal Service issues a 
final rule establishing the standards and require-
ments that apply to all such mailings and which in-
cludes the following: 
‘‘(A) The Postal Service shall verify that 
any person submitting an otherwise nonmailable 
tobacco product into the mails as authorized by 
this paragraph is a business or government 
agency permitted to make such mailings pursu-
ant to this section and the related final rule. 
‘‘(B) The Postal Service shall ensure that 
any recipient of an otherwise nonmailable to-
bacco product sent through the mails pursuant 
to this paragraph is a business or government 
agency that may lawfully receive such product. 
‘‘(C) The mailings shall be sent through 
the Postal Service’s systems that provide for 
the tracking and confirmation of the delivery. 
‘‘(D) The identities of the business or gov-
ernment entity submitting the mailing con-
taining otherwise nonmailable tobacco products 
for delivery and the business or government en-
tity receiving the mailing shall be clearly set
forth on the package and such information shall 
be kept in Postal Service records and made 
available to the Postal Service, the Attorney 
General,
and to persons eligible to bring en-
forcement actions pursuant to section 3(d) of 
the Prevent All Cigarette Trafficking Act of 
2008 for a period of at least three years. 
‘‘(E) The mailings shall be marked with a 
Postal Service label or marking that makes it 
clear to Postal Service employees that it is a 
permitted mailing of otherwise nonmailable to-
bacco products that may be delivered only to a 
permitted government agency or business and 
may not be delivered to any residence or indi-
vidual person. 
‘‘(F) The mailings shall be delivered only 
to verified adult employees of the recipient busi-
nesses or government agencies who shall be re-
quired to sign for the mailing. 
‘‘(4) CERTAIN INDIVIDUALS.—Tobacco products 
mailed by individual adult people for noncommercial, 
nonbusiness and non-money making purposes, in-
cluding the return of a damaged or unacceptable to-
bacco product to its manufacturer, if the Postal 
Service issues a final rule establishing the standards
and requirements that applies to all such mailings 
and which includes the following: 
‘‘(A) The Postal Service shall verify that 
any person submitting an otherwise nonmailable 
tobacco product into the mails as authorized by 
this section is the individual person identified 
on the return address label of the package and 
is an adult. 
‘‘(B) For mailings to individual persons 
the Postal Service shall require the person sub-
mitting the otherwise nonmailable tobacco prod-
uct into the mails as authorized by this sub-
section to affirm that the recipient is an adult. 
‘‘(C) The package shall not weigh more 
than 10 ounces. 
‘‘(D) The mailings shall be sent through 
the Postal Service’s systems that provide for 
the tracking and confirmation of the delivery. 
‘‘(E) No package shall be delivered or 
placed in the possession of any individual per-
son who is not a verified adult. For mailings to 
individual persons, the Postal Service shall de-
liver the package only to the verified adult re-
cipient at the recipient address or transfer it 
for delivery to an Air/Army Postal Office
(APO) or Fleet Postal Office (FPO) number 
designated in the recipient address. 
‘‘(F) No person shall initiate more than 
ten such mailings in any thirty-day period. 
‘‘(5) DEFINITION OF ADULT.—For the purposes 
of paragraphs (3) and (4), the term ‘adult’ means 
an individual person of at least the minimum age re-
quired for the legal sale or purchase of tobacco prod-
ucts as determined by the applicable law at the place 
the individual person is located. 
‘‘(d) SEIZURE AND FORFEITURE.—Any cigarettes or 
smokeless tobacco made nonmailable by this subsection 
that are deposited in the mails shall be subject to seizure 
and forfeiture, pursuant to the procedures set forth in 
chapter 46 of this title. Any tobacco products so seized 
and forfeited shall either be destroyed or retained by Gov-
ernment officials for the detection or prosecution of crimes 
or related investigations and then destroyed. 
‘‘(e) ADDITIONAL PENALTIES.—In addition to any 
other fines and penalties imposed by this chapter for viola-
tions of this section, any person violating this section shall 
be subject to an additional civil penalty in the amount of 
10 times the retail value of the nonmailable cigarettes or 
smokeless tobacco, including all Federal, State, and local 
taxes.
‘‘(f) CRIMINAL PENALTY.—Whoever knowingly de-
posits for mailing or delivery, or knowingly causes to be 
delivered by mail, according to the direction thereon, or 
at any place at which it is directed to be delivered by the 
person to whom it is addressed, anything that this section 
declares to be nonmailable matter shall be fined under this 
title, imprisoned not more than 1 year, or both. 
‘‘(g) DEFINITION.—As used in this section, the term 
‘State’ has the meaning given that term in section 
1716(k).’’. 
(b) USE OF PENALTIES.—There is established a sep-
arate account in the Treasury of the United States, to be 
known as the ‘‘PACT Postal Service Fund’’. Notwith-
standing any other provision of law, an amount equal to 
50 percent of any criminal and civil fines or monetary pen-
alties collected by the United States Government in en-
forcing the provisions of this subsection shall be trans-
ferred into the PACT Postal Service Fund and shall be 
available to the Postmaster General for the purpose of en-
forcing the provisions of this subsection. 
(c) COORDINATION OF EFFORTS.—In the enforce-
ment of this section, the Postal Service shall cooperate and 
coordinate its efforts with related enforcement activities 
of any other Federal agency or of any State, local, or trib-
al government, whenever appropriate.
(d) ACTIONS BY STATE, LOCAL OR TRIBAL GOVERN-
MENTS RELATING TO CERTAIN TOBACCO PRODUCTS.— 
(1) A State, through its attorney general (or a 
designee thereof), or a local government or Indian 
tribe that levies an excise tax on tobacco products, 
through its chief law enforcement officer (or a des-
ignee thereof), may in a civil action in a United 
States district court obtain appropriate relief with 
respect to a violation of section 1716E of title 18, 
United States Code. Appropriate relief includes in-
junctive and equitable relief and damages equal to 
the amount of unpaid taxes on tobacco products 
mailed in violation of that section to addressees in 
that State. 
(2) The State (or designee) shall serve prior 
written notice of any action under paragraph (1) 
upon the Postal Service and provide the Postal Serv-
ice with a copy of its complaint, except in any case 
where such prior notice is not feasible, in which case 
the State (or designee) shall serve such notice imme-
diately upon instituting such action. The Postal 
Service, in accordance with section 409(g)(2) of title 
39, United States Code, shall have the right (A) to 
intervene in the action, (B) upon so intervening, to
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 
Product Manufacturer that is not in full compliance with 
the terms of the Model Statute or Qualifying Statute en-
acted by such State requiring funds to be placed into a 
qualified escrow account under specified conditions, or any 
regulations promulgated pursuant to such statute. 
(b) JURISDICTION TO PREVENT AND RESTRAIN VIO-
LATIONS.— 
(1) IN GENERAL.—The United States district 
courts shall have jurisdiction to prevent and restrain 
violations of subsection (a) in accordance with this 
subsection. 
(2) INITIATION OF ACTION.—A State, through 
its attorney general, may bring an action in the 
United States district courts to prevent and restrain 
violations of subsection (a) by any person (or by any 
person 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 
Federal law shall be held or construed to prohibit or 
preempt the Master Settlement Agreement, the 
Model Statute (as defined in the Master Settlement 
Agreement), any legislation amending or complemen-
tary 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 
authorized State official from proceeding in State 
court or taking other enforcement actions on the 
basis of an alleged violation of State or other law. 
(6) AUTHORITY
OF
THE
ATTORNEY
GEN-
ERAL.—The Attorney General of the United States 
may administer and enforce subsection (a). 
(c) DEFINITIONS.—In this section the following defi-
nitions 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 to the buyer by common carrier, pri-
vate delivery service, or
other method of
re-
mote delivery, or the seller is not in the physical 
presence of the buyer when the buyer obtains 
possession of the cigarettes or smokeless to-
bacco. 
(2) IMPORTER.—The term ‘‘importer’’ means 
each of the following: 
(A) SHIPPING OR CONSIGNING.—Any per-
son in the United States to whom nontaxpaid 
tobacco products manufactured in a foreign 
country, Puerto Rico, the Virgin Islands, or a 
possession of the United States are shipped or 
consigned.
(B) MANUFACTURING WAREHOUSES.—Any 
person who removes cigars or cigarettes for sale 
or consumption in the United States from a 
customs-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 
Columbia, the Commonwealth of Puerto Rico, and 4 
territories of the United States and certain tobacco 
manufacturers. 
(4) MODEL STATUTE; QUALIFYING STATUTE.— 
The terms ‘‘Model Statute’’ and ‘‘Qualifying Stat-
ute’’ means a statute as defined in section 
IX(d)(2)(e) of the Master Settlement Agreement. 
(5) TOBACCO PRODUCT MANUFACTURER.—The 
term ‘‘Tobacco Product Manufacturer’’ has the 
meaning 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 
TOBACCO SELLERS; CIVIL PENALTY. 
Section 2343(c) of title 18, United States Code, is 
amended to read as follows: 
‘‘(c)(1) Any officer of the Bureau of Alcohol, To-
bacco, Firearms, and Explosives may, during normal busi-
ness hours, enter the premises of any person described in 
subsection (a) or (b) for the purposes of inspecting— 
‘‘(A) any records or information required to be 
maintained by such person under the provisions of 
law referred to in this chapter; or 
‘‘(B) any cigarettes or smokeless tobacco kept 
or stored by such person at such premises. 
‘‘(2) The district courts of the United States shall 
have the authority in a civil action under this subsection 
to compel inspections authorized by paragraph (1).’’ 
‘‘(3) Whoever violates paragraph (1), or an order 
issued under paragraph (2), shall be subject to a civil pen-
alty in an amount not to exceed $10,000 for each viola-
tion.’’.
SEC. 6. EXCLUSIONS REGARDING INDIAN TRIBES AND 
TRIBAL 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 inter-
governmental 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 In-
dian country; 
(2) any State laws that authorize or otherwise 
pertain to any such intergovernmental arrangements 
or create special rules or procedures for the collec-
tion of State, local, or tribal taxes on cigarettes or 
smokeless tobacco sold in Indian country; 
(3) any limitations under Federal or State law, 
including Federal common law and treaties, on 
State, local, and tribal tax and regulatory authority 
with respect to the sale, use, or distribution of ciga-
rettes and smokeless tobacco by or to Indian tribes, 
tribal members, tribal enterprises, or in Indian coun-
try;
(4) any Federal law, including Federal common 
law and treaties, regarding State jurisdiction, 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 Indian 
tribes; and 
(5) any State or local government authority to 
bring enforcement actions against persons located in 
Indian country. 
(b) COORDINATION OF LAW ENFORCEMENT.—Noth-
ing 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 juris-
dictions, including Indian tribes, through interstate com-
pact or otherwise, 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. 
(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, au-
thorize, deputize, or commission States or local govern-
ments as instrumentalities of the United States. 
(d) ENFORCEMENT WITHIN INDIAN COUNTRY.— 
Nothing in this Act or the amendments made by this Act 
is intended to prohibit, limit, or restrict enforcement by 
the Attorney General of the United States of the provi-
sions herein within Indian country. 
(e) AMBIGUITY.—Any ambiguity between the lan-
guage of this section or its application and any other pro-
vision 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 
associated 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 certain tobacco products. This Act was introduced rec-
ognizing the longstanding interest of Congress in urging 
compliance with States’ laws regulating remote sales of 
certain tobacco products to citizens of those States, includ-
ing the passage of the Jenkins Act over 50 years ago, 
which established reporting requirements for out-of-State 
companies that sell certain tobacco products to citizens of 
the taxing States, and which gave authority to the Depart-
ment of Justice and the Bureau of Alcohol, Tobacco and 
Firearms 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. 
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. 
Passed the House of Representatives September 10, 
2008. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H. R. 4081 
AN ACT 
To prevent tobacco smuggling, to ensure the collec-
tion of all tobacco taxes, and for other purposes.