264 
erating and only for the period in which such project is 
otherwise provided. 
(c) RULES OF APPLICATION.—For purposes of car-
rying out subsection (a), notwithstanding any other provi-
sion of law, information obtained from a financial institu-
tion that is used for purposes of eligibility determinations 
under such demonstration project with respect to the Sec-
retary of Health and Human Services under the SSI pro-
gram may also be shared and used by States for purposes 
of eligibility determinations under the Medicaid program. 
In applying section 1631(e)(1)(B)(ii) of the Social Secu-
rity Act under this subsection, references to the Commis-
sioner of Social Security and benefits under title XVI of 
such Act shall be treated as including a reference to a 
State described in subsection (b) and medical assistance 
under title XIX of such Act provided by such a State. 
Subtitle C—Other Provisions 
SEC. 621. SUPPORT FOR INJURED SERVICEMEMBERS. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Support for Injured Servicemembers Act’’. 
(b) SERVICEMEMBER FAMILY LEAVE.— 
(1) DEFINITIONS.—Section 101 of the Family 
and Medical Leave Act of 1993 (29 U.S.C. 2611) is 
amended by adding at the end the following: 
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‘‘(14) ACTIVE DUTY.—The term ‘active duty’ 
means duty under a call or order to active duty 
under a provision of law referred to in section 
101(a)(13)(B) of title 10, United States Code. 
‘‘(15) COVERED
SERVICEMEMBER.—The term 
‘covered servicemember’ means a member of the 
Armed Forces, including a member of the National 
Guard or a Reserve, who is undergoing medical 
treatment, recuperation, or therapy, is otherwise in 
medical hold or medical holdover status, or is other-
wise on the temporary disability retired list, for a se-
rious injury or illness. 
‘‘(16) MEDICAL HOLD OR MEDICAL HOLDOVER 
STATUS.—The term ‘medical hold or medical hold-
over status’ means— 
‘‘(A) the status of a member of the Armed 
Forces, including a member of the National 
Guard or a Reserve, assigned or attached to a 
military hospital for medical care; and 
‘‘(B) the status of a member of a reserve 
component of the Armed Forces who is sepa-
rated, whether pre-deployment or post-deploy-
ment, from the member’s unit while in need of 
health care based on a medical condition identi-
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266 
fied while the member is on active duty in the 
Armed Forces. 
‘‘(17) NEXT OF KIN.—The term ‘next of kin’, 
used with respect to an individual, means the near-
est blood relative of that individual. 
‘‘(18) SERIOUS INJURY OR ILLNESS.—The term 
‘serious injury or illness’, in the case of a member 
of the Armed Forces, means an injury or illness in-
curred by the member in line of duty on active duty 
in the Armed Forces that may render the member 
medically unfit to perform the duties of the mem-
ber’s office, grade, rank, or rating.’’. 
(2) ENTITLEMENT TO LEAVE.—Section 102(a) 
of such Act (29 U.S.C. 2612(a)) is amended by add-
ing at the end the following: 
‘‘(3) SERVICEMEMBER FAMILY LEAVE.—Subject 
to section 103, an eligible employee who is the 
spouse, son, daughter, parent, or next of kin of a 
covered servicemember shall be entitled to a total of 
26 workweeks of leave during a 12-month period to 
care for the servicemember. The leave described in 
this paragraph shall only be available during a single 
12-month period. 
‘‘(4) COMBINED
LEAVE
TOTAL.—During the 
single 12-month period described in paragraph (3), 
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267 
an eligible employee shall be entitled to a combined 
total of 26 workweeks of leave under paragraphs (1) 
and (3). Nothing in this paragraph shall be con-
strued to limit the availability of leave under para-
graph (1) during any other 12-month period.’’. 
(3) REQUIREMENTS RELATING TO LEAVE.— 
(A) SCHEDULE.—Section 102(b) of such 
Act (29 U.S.C. 2612(b)) is amended— 
(i) in paragraph (1), in the second 
sentence— 
(I) 
by 
striking 
‘‘section 
103(b)(5)’’ and inserting ‘‘subsection 
(b)(5) or (f) (as appropriate) of sec-
tion 103’’; and 
(II) by inserting ‘‘or under sub-
section 
(a)(3)’’ 
after 
‘‘subsection 
(a)(1)’’; and 
(ii) in paragraph (2), by inserting ‘‘or 
under subsection (a)(3)’’ after ‘‘subsection 
(a)(1)’’. 
(B) SUBSTITUTION OF PAID LEAVE.—Sec-
tion 102(d) of such Act (29 U.S.C. 2612(d)) is 
amended— 
(i) in paragraph (1)— 
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268 
(I) by inserting ‘‘(or 26 work-
weeks in the case of leave provided 
under subsection (a)(3))’’ after ‘‘12 
workweeks’’ the first place it appears; 
and 
(II) by inserting ‘‘(or 26 work-
weeks, as appropriate)’’ after ‘‘12 
workweeks’’ the second place it ap-
pears; and 
(ii) in paragraph (2)(B), by adding at 
the end the following: ‘‘An eligible em-
ployee may elect, or an employer may re-
quire the employee, to substitute any of 
the accrued paid vacation leave, personal 
leave, family leave, or medical or sick leave 
of the employee for leave provided under 
subsection (a)(3) for any part of the 26- 
week period of such leave under such sub-
section.’’. 
(C) NOTICE.—Section 102(e)(2) of such 
Act (29 U.S.C. 2612(e)(2)) is amended by in-
serting ‘‘or under subsection (a)(3)’’ after ‘‘sub-
section (a)(1)’’. 
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269 
(D) SPOUSES
EMPLOYED
BY
SAME
EM-
PLOYER.—Section 102(f) of such Act (29 
U.S.C. 2612(f)) is amended— 
(i) by redesignating paragraphs (1) 
and (2) as subparagraphs (A) and (B), 
and aligning the margins of the subpara-
graphs with the margins of section 
102(e)(2)(A); 
(ii) by striking ‘‘In any’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—In any’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(2) SERVICEMEMBER FAMILY LEAVE.— 
‘‘(A) IN GENERAL.—The aggregate num-
ber of workweeks of leave to which both that 
husband and wife may be entitled under sub-
section (a) may be limited to 26 workweeks 
during the single 12-month period described in 
subsection (a)(3) if the leave is— 
‘‘(i) leave under subsection (a)(3); or 
‘‘(ii) a combination of leave under 
subsection (a)(3) and leave described in 
paragraph (1). 
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271 
‘‘(iii) a certification issued by the 
health care provider of the servicemember 
being cared for by the employee, in the 
case of an employee unable to return to 
work because of a condition specified in 
section 102(a)(3).’’. 
(G) ENFORCEMENT.—Section 107 of such 
Act (29 U.S.C. 2617) is amended, in subsection 
(a)(1)(A)(i)(II), by inserting ‘‘(or 26 weeks, in 
a case involving leave under section 102(a)(3))’’ 
after ‘‘12 weeks’’. 
(H) INSTRUCTIONAL
EMPLOYEES.—Sec-
tion 108 of such Act (29 U.S.C. 2618) is 
amended, in subsections (c)(1), (d)(2), and 
(d)(3), 
by 
inserting 
‘‘or 
under 
section 
102(a)(3)’’ after ‘‘section 102(a)(1)’’. 
(c) SERVICEMEMBER FAMILY LEAVE
FOR CIVIL 
SERVICE EMPLOYEES.— 
(1) DEFINITIONS.—Section 6381 of title 5, 
United States Code, is amended— 
(A) in paragraph (5), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (6), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
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272 
‘‘(7) the term ‘active duty’ means duty under a 
call or order to active duty under a provision of law 
referred to in section 101(a)(13)(B) of title 10, 
United States Code; 
‘‘(8) the term ‘covered servicemember’ means a 
member of the Armed Forces, including a member 
of the National Guard or a Reserve, who is under-
going medical treatment, recuperation, or therapy, is 
otherwise in medical hold or medical holdover status, 
or is otherwise on the temporary disability retired 
list, for a serious injury or illness; 
‘‘(9) the term ‘medical hold or medical holdover 
status’ means— 
‘‘(A) the status of a member of the Armed 
Forces, including a member of the National 
Guard or a Reserve, assigned or attached to a 
military hospital for medical care; and 
‘‘(B) the status of a member of a reserve 
component of the Armed Forces who is sepa-
rated, whether pre-deployment or post-deploy-
ment, from the member’s unit while in need of 
health care based on a medical condition identi-
fied while the member is on active duty in the 
Armed Forces; 
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273 
‘‘(10) the term ‘next of kin’, used with respect 
to an individual, means the nearest blood relative of 
that individual; and 
‘‘(11) the term ‘serious injury or illness’, in the 
case of a member of the Armed Forces, means an 
injury or illness incurred by the member in line of 
duty on active duty in the Armed Forces that may 
render the member medically unfit to perform the 
duties of the member’s office, grade, rank, or rat-
ing.’’. 
(2) ENTITLEMENT TO LEAVE.—Section 6382(a) 
of such title is amended by adding at the end the 
following: 
‘‘(3) Subject to section 6383, an employee who 
is the spouse, son, daughter, parent, or next of kin 
of a covered servicemember shall be entitled to a 
total of 26 administrative workweeks of leave during 
a 12-month period to care for the servicemember. 
The leave described in this paragraph shall only be 
available during a single 12-month period. 
‘‘(4) During the single 12-month period de-
scribed in paragraph (3), an employee shall be enti-
tled to a combined total of 26 administrative work-
weeks of leave under paragraphs (1) and (3). Noth-
ing in this paragraph shall be construed to limit the 
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274 
availability of leave under paragraph (1) during any 
other 12-month period.’’. 
(3) REQUIREMENTS RELATING TO LEAVE.— 
(A) SCHEDULE.—Section 6382(b) of such 
title is amended— 
(i) in paragraph (1), in the second 
sentence— 
(I) 
by 
striking 
‘‘section 
6383(b)(5)’’ and inserting ‘‘subsection 
(b)(5) or (f) (as appropriate) of sec-
tion 6383’’; and 
(II) by inserting ‘‘or under sub-
section 
(a)(3)’’ 
after 
‘‘subsection 
(a)(1)’’; and 
(ii) in paragraph (2), by inserting ‘‘or 
under subsection (a)(3)’’ after ‘‘subsection 
(a)(1)’’. 
(B) SUBSTITUTION OF PAID LEAVE.—Sec-
tion 6382(d) of such title is amended by adding 
at the end the following: ‘‘An employee may 
elect to substitute for leave under subsection 
(a)(3) any of the employee’s accrued or accu-
mulated annual or sick leave under subchapter 
I for any part of the 26-week period of leave 
under such subsection.’’. 
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275 
(C) NOTICE.—Section 6382(e) of such title 
is amended by inserting ‘‘or under subsection 
(a)(3)’’ after ‘‘subsection (a)(1)’’. 
(D) CERTIFICATION.—Section 6383 of 
such title is amended by adding at the end the 
following: 
‘‘(f) An employing agency may require that a request 
for leave under section 6382(a)(3) be supported by a cer-
tification issued at such time and in such manner as the 
Office of Personnel Management may by regulation pre-
scribe.’’. 
SEC. 622. OUTREACH REGARDING HEALTH INSURANCE OP-
TIONS AVAILABLE TO CHILDREN. 
(a) DEFINITIONS.—In this section— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ means the Small Business Administration 
and the Administrator thereof, respectively; 
(2) the term ‘‘certified development company’’ 
means a development company participating in the 
program under title V of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 695 et seq.); 
(3) the term ‘‘Medicaid program’’ means the 
program established under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.); 
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276 
(4) the term ‘‘Service Corps of Retired Execu-
tives’’ means the Service Corps of Retired Execu-
tives authorized by section 8(b)(1) of the Small 
Business Act (15 U.S.C. 637(b)(1)); 
(5) the term ‘‘small business concern’’ has the 
meaning given that term in section 3 of the Small 
Business Act (15 U.S.C. 632); 
(6) the term ‘‘small business development cen-
ter’’ means a small business development center de-
scribed in section 21 of the Small Business Act (15 
U.S.C. 648); 
(7) the term ‘‘State’’ has the meaning given 
that term for purposes of title XXI of the Social Se-
curity Act (42 U.S.C. 1397aa et seq.); 
(8) the term ‘‘State Children’s Health Insur-
ance Program’’ means the State Children’s Health 
Insurance Program established under title XXI of 
the Social Security Act (42 U.S.C. 1397aa et seq.); 
(9) the term ‘‘task force’’ means the task force 
established under subsection (b)(1); and 
(10) the term ‘‘women’s business center’’ means 
a women’s business center described in section 29 of 
the Small Business Act (15 U.S.C. 656). 
(b) ESTABLISHMENT OF TASK FORCE.— 
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277 
(1) ESTABLISHMENT.—There is established a 
task force to conduct a nationwide campaign of edu-
cation and outreach for small business concerns re-
garding the availability of coverage for children 
through private insurance options, the Medicaid pro-
gram, and the State Children’s Health Insurance 
Program. 
(2) MEMBERSHIP.—The task force shall consist 
of the Administrator, the Secretary of Health and 
Human Services, the Secretary of Labor, and the 
Secretary of the Treasury. 
(3) RESPONSIBILITIES.—The campaign con-
ducted under this subsection shall include— 
(A) efforts to educate the owners of small 
business concerns about the value of health cov-
erage for children; 
(B) information regarding options available 
to the owners and employees of small business 
concerns to make insurance more affordable, in-
cluding Federal and State tax deductions and 
credits for health care-related expenses and 
health insurance expenses and Federal tax ex-
clusion for health insurance options available 
under employer-sponsored cafeteria plans under 
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278 
section 125 of the Internal Revenue Code of 
1986; 
(C) efforts to educate the owners of small 
business concerns about assistance available 
through public programs; and 
(D) efforts to educate the owners and em-
ployees of small business concerns regarding 
the availability of the hotline operated as part 
of the Insure Kids Now program of the Depart-
ment of Health and Human Services. 
(4) IMPLEMENTATION.—In carrying out this 
subsection, the task force may— 
(A) use any business partner of the Ad-
ministration, including— 
(i) a small business development cen-
ter; 
(ii) a certified development company; 
(iii) a women’s business center; and 
(iv) the Service Corps of Retired Ex-
ecutives; 
(B) enter into— 
(i) a memorandum of understanding 
with a chamber of commerce; and 
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279 
(ii) a partnership with any appro-
priate small business concern or health ad-
vocacy group; and 
(C) designate outreach programs at re-
gional offices of the Department of Health and 
Human Services to work with district offices of 
the Administration. 
(5) WEBSITE.—The Administrator shall ensure 
that links to information on the eligibility and enroll-
ment requirements for the Medicaid program and 
State Children’s Health Insurance Program of each 
State are prominently displayed on the website of 
the Administration. 
(6) REPORT.— 
(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of this Act, and 
every 2 years thereafter, the Administrator 
shall submit to the Committee on Small Busi-
ness and Entrepreneurship of the Senate and 
the Committee on Small Business of the House 
of Representatives a report on the status of the 
nationwide campaign conducted under para-
graph (1). 
(B) CONTENTS.—Each report submitted 
under subparagraph (A) shall include a status 
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280 
update on all efforts made to educate owners 
and employees of small business concerns on 
options for providing health insurance for chil-
dren through public and private alternatives. 
SEC. 623. SENSE OF SENATE REGARDING ACCESS TO AF-
FORDABLE AND MEANINGFUL HEALTH IN-
SURANCE COVERAGE. 
(a) FINDINGS.—The Senate finds the following: 
(1) There are approximately 45 million Ameri-
cans currently without health insurance. 
(2) More than half of uninsured workers are 
employed by businesses with less than 25 employees 
or are self-employed. 
(3) Health insurance premiums continue to rise 
at more than twice the rate of inflation for all con-
sumer goods. 
(4) Individuals in the small group and indi-
vidual health insurance markets usually pay more 
for similar coverage than those in the large group 
market. 
(5) The rapid growth in health insurance costs 
over the last few years has forced many employers, 
particularly small employers, to increase deductibles 
and co-pays or to drop coverage completely. 
(b) SENSE OF THE SENATE.—The Senate— 
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281 
(1) recognizes the necessity to improve afford-
ability and access to health insurance for all Ameri-
cans; 
(2) acknowledges the value of building upon the 
existing private health insurance market; and 
(3) affirms its intent to enact legislation this 
year that, with appropriate protection for con-
sumers, improves access to affordable and meaning-
ful health insurance coverage for employees of small 
businesses and individuals by— 
(A) facilitating pooling mechanisms, in-
cluding pooling across State lines, and 
(B) providing assistance to small busi-
nesses and individuals, including financial as-
sistance and tax incentives, for the purchase of 
private insurance coverage. 
TITLE VII—REVENUE 
PROVISIONS 
SEC. 701. INCREASE IN EXCISE TAX RATE ON TOBACCO 
PRODUCTS. 
(a) CIGARS.—Section 5701(a) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘$1.828 cents per thousand 
($1.594 cents per thousand on cigars removed dur-
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282 
ing 2000 or 2001)’’ in paragraph (1) and inserting 
‘‘$50.00 per thousand’’, 
(2) by striking ‘‘20.719 percent (18.063 percent 
on cigars removed during 2000 or 2001)’’ in para-
graph (2) and inserting ‘‘52.988 percent’’, and 
(3) by striking ‘‘$48.75 per thousand ($42.50 
per thousand on cigars removed during 2000 or 
2001)’’ in paragraph (2) and inserting ‘‘$3.00 per 
cigar’’. 
(b) CIGARETTES.—Section 5701(b) of such Code is 
amended— 
(1) by striking ‘‘$19.50 per thousand ($17 per 
thousand on cigarettes removed during 2000 or 
2001)’’ in paragraph (1) and inserting ‘‘$50.00 per 
thousand’’, and 
(2) by striking ‘‘$40.95 per thousand ($35.70 
per thousand on cigarettes removed during 2000 or 
2001)’’ in paragraph (2) and inserting ‘‘$105.00 per 
thousand’’. 
(c) CIGARETTE PAPERS.—Section 5701(c) of such 
Code is amended by striking ‘‘1.22 cents (1.06 cents on 
cigarette papers removed during 2000 or 2001)’’ and in-
serting ‘‘3.13 cents’’. 
(d) CIGARETTE TUBES.—Section 5701(d) of such 
Code is amended by striking ‘‘2.44 cents (2.13 cents on 
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285 
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore April 1, 2008. 
(4) ARTICLES
IN
FOREIGN
TRADE
ZONES.— 
Notwithstanding the Act of June 18, 1934 (com-
monly known as the Foreign Trade Zone Act, 48 
Stat. 998, 19 U.S.C. 81a et seq.) or any other provi-
sion of law, any article which is located in a foreign 
trade zone on January 1, 2008, shall be subject to 
the tax imposed by paragraph (1) if— 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant 
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or 
(B) such article is held on such date under 
the supervision of an officer of the United 
States Customs and Border Protection of the 
Department of Homeland Security pursuant to 
the 2d proviso of such section 3(a). 
(5) DEFINITIONS.—For purposes of this sub-
section— 
(A) IN GENERAL.—Any term used in this 
subsection which is also used in section 5702 of 
the Internal Revenue Code of 1986 shall have 
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286 
the same meaning as such term has in such 
section. 
(B) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the 
Secretary’s delegate. 
(6) CONTROLLED
GROUPS.—Rules similar to 
the rules of section 5061(e)(3) of such Code shall 
apply for purposes of this subsection. 
(7) OTHER LAWS APPLICABLE.—All provisions 
of law, including penalties, applicable with respect to 
the taxes imposed by section 5701 of such Code 
shall, insofar as applicable and not inconsistent with 
the provisions of this subsection, apply to the floor 
stocks taxes imposed by paragraph (1), to the same 
extent as if such taxes were imposed by such section 
5701. The Secretary may treat any person who bore 
the ultimate burden of the tax imposed by para-
graph (1) as the person to whom a credit or refund 
under such provisions may be allowed or made. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to articles removed (as defined in 
section 5702(j) of the Internal Revenue Code of 1986) 
after December 31, 2007. 
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287 
SEC. 702. ADMINISTRATIVE IMPROVEMENTS. 
(a) PERMIT, REPORT, AND RECORD REQUIREMENTS 
FOR MANUFACTURERS AND IMPORTERS OF PROCESSED 
TOBACCO.— 
(1) PERMITS.— 
(A) APPLICATION.—Section 5712 of the 
Internal Revenue Code of 1986 is amended by 
inserting ‘‘or processed tobacco’’ after ‘‘tobacco 
products’’. 
(B) ISSUANCE.—Section 5713(a) of such 
Code is amended by inserting ‘‘or processed to-
bacco’’ after ‘‘tobacco products’’. 
(2) INVENTORIES AND REPORTS.— 
(A) INVENTORIES.—Section 5721 of such 
Code is amended by inserting ‘‘, processed to-
bacco,’’ after ‘‘tobacco products’’. 
(B) REPORTS.—Section 5722 of such Code 
is amended by inserting ‘‘, processed tobacco,’’ 
after ‘‘tobacco products’’. 
(3) RECORDS.—Section 5741 of such Code is 
amended by inserting ‘‘, processed tobacco,’’ after 
‘‘tobacco products’’. 
(4) 
MANUFACTURER
OF
PROCESSED
TO-
BACCO.—Section 5702 of such Code is amended by 
adding at the end the following new subsection: 
‘‘(p) MANUFACTURER OF PROCESSED TOBACCO.— 
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‘‘(1) IN GENERAL.—The term ‘manufacturer of 
processed tobacco’ means any person who processes 
any tobacco other than tobacco products. 
‘‘(2) PROCESSED TOBACCO.—The processing of 
tobacco shall not include the farming or growing of 
tobacco or the handling of tobacco solely for sale, 
shipment, or delivery to a manufacturer of tobacco 
products or processed tobacco.’’. 
(5) 
CONFORMING
AMENDMENT.—Section 
5702(k) of such Code is amended by inserting ‘‘, or 
any processed tobacco,’’ after ‘‘nontaxpaid tobacco 
products or cigarette papers or tubes’’. 
(6) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on January 1, 
2008. 
(b) BASIS FOR DENIAL, SUSPENSION, OR REVOCA-
TION OF PERMITS.— 
(1) DENIAL.—Paragraph (3) of section 5712 of 
such Code is amended to read as follows: 
‘‘(3) such person (including, in the case of a 
corporation, any officer, director, or principal stock-
holder and, in the case of a partnership, a part-
ner)— 
‘‘(A) is, by reason of his business experi-
ence, financial standing, or trade connections or 
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289 
by reason of previous or current legal pro-
ceedings involving a felony violation of any 
other provision of Federal criminal law relating 
to tobacco products, cigarette paper, or ciga-
rette tubes, not likely to maintain operations in 
compliance with this chapter, 
‘‘(B) has been convicted of a felony viola-
tion of any provision of Federal or State crimi-
nal law relating to tobacco products, cigarette 
paper, or cigarette tubes, or 
‘‘(C) has failed to disclose any material in-
formation required or made any material false 
statement in the application therefor.’’. 
(2) SUSPENSION OR REVOCATION.—Subsection 
(b) of section 5713 of such Code is amended to read 
as follows: 
‘‘(b) SUSPENSION OR REVOCATION.— 
‘‘(1) SHOW CAUSE HEARING.—If the Secretary 
has reason to believe that any person holding a per-
mit— 
‘‘(A) has not in good faith complied with 
this chapter, or with any other provision of this 
title involving intent to defraud, 
‘‘(B) has violated the conditions of such 
permit, 
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290 
‘‘(C) has failed to disclose any material in-
formation required or made any material false 
statement in the application for such permit, 
‘‘(D) has failed to maintain his premises in 
such manner as to protect the revenue, 
‘‘(E) is, by reason of previous or current 
legal proceedings involving a felony violation of 
any other provision of Federal criminal law re-
lating to tobacco products, cigarette paper, or 
cigarette tubes, not likely to maintain oper-
ations in compliance with this chapter, or 
‘‘(F) has been convicted of a felony viola-
tion of any provision of Federal or State crimi-
nal law relating to tobacco products, cigarette 
paper, or cigarette tubes, 
the Secretary shall issue an order, stating the facts 
charged, citing such person to show cause why his 
permit should not be suspended or revoked. 
‘‘(2) ACTION FOLLOWING HEARING.—If, after 
hearing, the Secretary finds that such person has 
not shown cause why his permit should not be sus-
pended or revoked, such permit shall be suspended 
for such period as the Secretary deems proper or 
shall be revoked.’’. 
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292 
defined in section 5702(j) of the Internal Revenue 
Code of 1986) after December 31, 2007. 
(e) TIME
OF TAX
FOR UNLAWFULLY MANUFAC-
TURED TOBACCO PRODUCTS.— 
(1) IN GENERAL.—Section 5703(b)(2) of such 
Code is amended by adding at the end the following 
new subparagraph: 
‘‘(F) SPECIAL
RULE
FOR
UNLAWFULLY 
MANUFACTURED TOBACCO PRODUCTS.—In the 
case of any tobacco products, cigarette paper, 
or cigarette tubes produced in the United 
States at any place other than the premises of 
a manufacturer of tobacco products, cigarette 
paper, or cigarette tubes that has filed the bond 
and obtained the permit required under this 
chapter, tax shall be due and payable imme-
diately upon manufacture.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
SEC. 703. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
Subparagraph (B) of section 401(1) of the Tax In-
crease Prevention and Reconciliation Act of 2005 is 
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293 
amended by striking ‘‘114.75 percent’’ and inserting 
‘‘113.75 percent’’. 
Æ 
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