153
pensation from any source other than ACT
for services performed for ACT.
(ii) UNITED
STATES
OFFICERS
AND
EMPLOYEES.—An individual who is an offi-
cer or employee of the United States who
also serves on the Board of Directors or as
an officer or employee of ACT, may not re-
ceive any compensation or travel expenses
in connection with services performed for
ACT.
(D) STOCKS AND DIVIDENDS.—ACT shall
not issue any shares of stock or declare or pay
any dividends.
(E) AUDITS.—
(i) PUBLIC ACCOUNTS.—The accounts
of ACT shall be audited annually in ac-
cordance with generally accepted auditing
standards.
(ii) COMPTROLLER
GENERAL.—The
financial transactions of ACT for each fis-
cal year may be audited by the Comptroller
General. A report of each audit shall be
made by the Comptroller General to Con-
gress. A copy of each report shall be fur-
154
nished to the President and to ACT at the
time the report is submitted to Congress.
(F) RECORDKEEPING.—ACT shall ensure
that each recipient of assistance from ACT
under this subsection keeps such records as
may be reasonably necessary to fully disclose
the amount and the disposition by such recipi-
ent of the proceeds of such assistance, the total
cost of the project or undertaking in connection
with which such assistance is given or used, and
the amount and nature of that portion of the
cost of the project or undertaking supplied by
other sources, and such other records as will fa-
cilitate an effective audit. ACT shall ensure
that it, or any of its duly authorized representa-
tives, shall have access for the purpose of audit
and examination to any books, documents, pa-
pers, and records of each recipient of assistance
from ACT that are pertinent to assistance pro-
vided through ACT under this subsection.
SEC. 625. NATIONAL EVENT SPONSORSHIP PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall establish
a program to be known as the ‘‘National Event Sponsor-
ship Program’’ under which the Secretary may award
155
grants to eligible entities or individuals for the sponsorship
of activities described in subsection (c).
(b) ELIGIBILITY.—To be eligible to receive a grant
under this section an entity or individual shall—
(1) prepare and submit to the Secretary an ap-
plication at such time, in such manner, and contain-
ing such information as the Secretary may require,
including—
(A) a description of the event, activity,
team, or entry for which the grant is to be pro-
vided;
(B) documentation that the event, activity,
team, or entry involved was sponsored or other-
wise funded by a tobacco manufacturer or dis-
tributor prior to the date of the application; and
(C) a certification that the applicant is un-
able to secure funding for the event, activity,
team, or entry involved from sources other than
those described in paragraph (2);
(2) provide assurances that amounts received
under the grant will be used in accordance with sub-
section (d); and
(3) meet any other requirements determined ap-
propriate by the Secretary.
156
(c) 
PERMISSIBLE
SPONSORSHIP
ACTIVITIES.—
Events, activities, teams, or entries for which a grant may
be provided under this section include—
(1) an athletic, musical, artistic, educational, or
other social or cultural event or activity that was
sponsored in whole or in part by a tobacco manufac-
turer or distributor prior to the date of enactment
of this Act with particular emphasis on smaller com-
munity-based events and activities;
(2) the participation of a team that was spon-
sored in whole or in part by a tobacco manufacturer
or distributor prior to the date of enactment of this
Act, in an athletic event or activity; and
(3) the payment of a portion or all of the entry
fees of, or other financial or technical support pro-
vided to, an individual or team by a tobacco manu-
facturer or distributor prior to the date of enactment
of this Act, for participation of the individual in an
athletic, musical, artistic, or other social or cultural
event.
(d) USE
OF FUNDS.—Amounts received under a
grant under this section shall be used to—
(1)(A) pay the costs associated with the spon-
sorship of an event or activity described in sub-
section (c)(1);
157
(B) provide for the sponsorship of an individual
or team;
(C) pay the required entry fees associated with
the participation of an individual or team in an
event or activity described in subsection (c)(3);
(D) provide financial or technical support to an
individual or team in connection with the participa-
tion of that individual or team in an activity de-
scribed in subsection (c)(3); or
(E) for any other purposes determined appro-
priate by the Secretary; and
(2) promote images or activities to discourage
individuals from using tobacco products or encour-
age individuals who use such products to quit.
(e) 
ALLOCATION
OF
UNEXPENDED
FUNDS.—
Amounts available for purposes of carrying out this sec-
tion and remaining available at the end of the 10-year pe-
riod following the date of the establishment of the program
under this section, shall be used as follows:
(1) 50 percent of such amounts shall be used
to supplement amounts available for multi-media
campaigns under section 621;
(2) 25 percent of such amounts shall be used
to supplement amounts available for Federal or
State tobacco product enforcement purposes; and
158
(3) 25 percent of such amounts shall be used
to supplement amounts available for community-
based programs under this subtitle or subtitle B.
(f) FUNDING.—There shall be made available to
carry out this section an amount equal to 1 percent of
the amounts made available under section 101(d)(5)(C)
for a fiscal year.
(g) SUNSET.—The program established under this
section shall terminate on the date that is 10-years after
the date of enactment of this Act.
SEC. 626. PROGRAMS TO REDUCE ALCOHOL AND ILLICIT
DRUG USE BY MINORS.
(a) IN GENERAL.—The Secretary shall establish a
program under which grants are awarded to States to aug-
ment funding for existing programs that are designed to
reduce alcohol and illicit drug use by individuals under 18
years of age and that have been proven effective.
(b) ELIGIBILITY.—To be eligible to receive a grant
under this section a State shall prepare and submit to the
Secretary an application at such time, in such manner,
and containing such information as the Secretary may re-
quire, including a State plan (that is subject to approval
by the Secretary) that describes—
(1) the types of programs that the State will
fund under the grant;
159
(2) the manner in which the State will ensure
that the programs will be age-appropriate;
(3) the manner in which the State will monitor
the effectiveness of such programs; and
(4) the manner in which the State program will
be targeted at populations that are most at risk to
use alcohol or illicit drugs.
(c) USE OF FUNDS.—Amounts received by a State
under this section shall be used to expand and enhance
existing programs to discourage the use of alcohol and il-
licit drugs and to encourage those who use such products
to quit such use.
(d) ADDITIONAL REQUIREMENTS.—To be eligible to
receive a grant under this section a State shall provide
assurances to the Secretary that—
(1) the State will annually report to the Sec-
retary on the effectiveness of the programs imple-
mented by the State;
(2) adequate records will be maintained with re-
spect to such assistance; and
(3) amounts provided to the individual or entity
will be subject to independent audit.
(e) FUNDING.—There shall be made available to
carry out this section an amount equal to 5 percent of