I
105TH CONGRESS
2D SESSION
H. R. 3868
To prevent children from using tobacco products, to reduce the health costs
attributable to tobacco products, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 14, 1998
Mr. HANSEN (for himself, Mr. MEEHAN, Mr. WAXMAN, Mr. BILBRAY, Mr.
DOGGETT, Mr. COOK, Mr. FAZIO of California, Mr. CANNON, Mr.
PALLONE, Mr. FOX of Pennsylvania, Ms. DEGETTE, Mr. GILMAN, Mr.
LEWIS of Georgia, Mrs. MORELLA, Mr. ABERCROMBIE, Mrs. ROUKEMA,
Mrs. TAUSCHER, Mr. MCKEON, Mr. BLAGOJEVICH, Mr. HORN, Mr.
BROWN of California, Mr. CAMPBELL, Mr. BONIOR, Mr. FORD, Mr. KEN-
NEDY of Rhode Island, Mr. OBERSTAR, Mr. KENNEDY of Massachusetts,
Mr. SCHUMER, Mr. OLVER, Mr. LAFALCE, Ms. NORTON, Mr. VISCLOSKY,
Mr. ACKERMAN, Mr. MCDERMOTT, Mr. MATSUI, Mr. LAMPSON, Mr.
DELAHUNT, Mr. MCHALE, Mr. YATES, Mr. POMEROY, Mr. BARRETT of
Wisconsin, Mr. MARKEY, Ms. FURSE, Mr. BLUMENAUER, Mr. MINGE,
Mr. VENTO, Mr. NADLER, Mr. STARK, Ms. PELOSI, Mr. MCGOVERN, Mr.
SHERMAN, Ms. DELAURO, Mr. HINCHEY, Ms. ESHOO, Mr. GEPHARDT,
Mr. FARR of California, Ms. LOFGREN, Ms. WOOLSEY, Mr. CARDIN, Ms.
STABENOW, Mr. LEVIN, Ms. SLAUGHTER, Mr. MILLER of California, Mr.
JOHNSON of Wisconsin, Mr. LIPINSKI, Mr. FROST, Mrs. MALONEY of
New York, Mrs. CAPPS, Mr. LANTOS, Mr. WEYGAND, Mr. MENENDEZ,
Mr. FILNER, Ms. MILLENDER-MCDONALD, Mr. GUTIERREZ, Mr. BOR-
SKI, Mrs. LOWEY, Mr. CUMMINGS, Ms. ROYBAL-ALLARD, Mr. WEXLER,
Mr. COYNE, Mr. MORAN of Virginia, Mr. GEJDENSON, Mr. CONYERS,
Mrs. MCCARTHY of New York, Mr. DICKS, Mr. RUSH, Mr. PAYNE, Mr.
DAVIS of Illinois, Ms. JACKSON-LEE, and Mr. STOKES) introduced the
following bill; which was referred to the Committee on Commerce, and
in addition to the Committee on Ways and Means, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To prevent children from using tobacco products, to reduce
the health costs attributable to tobacco products, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bipartisan NO Tobacco for Kids Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—PRICE INCREASE TO DISCOURAGE CHILD TOBACCO USE
Sec. 101. Policy.
Sec. 102. Payments by tobacco manufacturers.
Sec. 103. General provisions.
TITLE II—FDA JURISDICTION OVER TOBACCO PRODUCTS
Sec. 201. Reference.
Sec. 202. Definitions.
Sec. 203. Amendments to chapter V.
Sec. 204. Validation of the FDA rule.
Sec. 205. Special provisions for tobacco products.
Sec. 206. General provisions.
Sec. 207. Repeal.
TITLE III—PERFORMANCE OBJECTIVES TO REDUCE CHILD
TOBACCO USE
Sec. 301. Annual performance surveys.
Sec. 302. Performance objectives.
Sec. 303. Additional measures to reduce child tobacco use.
Sec. 304. Proceeds of price increases.
Sec. 305. Judicial review.
Sec. 306. General provisions.
Sec. 307. Use of tobacco products among minority populations.
Sec. 308. Definitions.
TITLE IV—SMOKE-FREE ENVIRONMENTS
Sec. 401. Smoke-free environment policy.
Sec. 402. Citizen actions.
Sec. 403. Regulations.
Sec. 404. Definitions.
Sec. 405. Preemption.
Sec. 406. Effective date.
TITLE V—TOBACCO PREVENTION INITIATIVES
Sec. 501. National public awareness campaign.
Sec. 502. Federal implementation.
Sec. 503. Tobacco use cessation.
Sec. 504. Research and surveillance.
Sec. 505. Minority populations.
Sec. 506. Inflation adjustment.
TITLE VI—INTERNATIONAL TOBACCO CONTROL
Sec. 601. Sale, distribution, and advertising of tobacco products in foreign
countries.
Sec. 602. Prohibition on Federal efforts to promote tobacco exports.
Sec. 603. International Tobacco Control Trust Fund.
Sec. 604. American Center on Global Health and Tobacco.
Sec. 605. Assessment on tobacco products manufactured in a foreign country.
Sec. 606. Prevention of tobacco smuggling.
Sec. 607. Sense of Congress.
TITLE VII—TOBACCO ACCOUNTABILITY BOARD
Sec. 701. Tobacco Accountability Board.
Sec. 702. Disclosure of tobacco industry documents.
Sec. 703. Investigation and annual reports.
Sec. 704. Authorities.
Sec. 705. Enforcement.
Sec. 706. Administration.
Sec. 707. Whistleblower protections.
Sec. 708. Definitions.
TITLE VIII—PAYMENTS TO STATES
Subtitle A—Resolution of State Actions
Sec. 801. State elections.
Sec. 802. Payments to States.
Sec. 803. Exempt manufacturers.
Subtitle B—State Grants
Sec. 811. Public awareness and prevention programs.
Sec. 812. Reimbursement of States for medicaid expenses.
TITLE IX—DEFINITIONS
Sec. 901. Definitions.
TITLE I—PRICE INCREASE TO
DISCOURAGE 
CHILD 
TO-
BACCO USE
SEC. 101. POLICY.
Funds raised by this title shall be used to reduce the
public debt, except as provided in title V (relating to to-
bacco prevention initiatives) and VIII (relating to pay-
ments to States).
SEC. 102. PAYMENTS BY TOBACCO MANUFACTURERS.
(a) INITIAL PAYMENT.—Not later than 60 days after
the date of enactment of this Act, the Secretary shall as-
sess each manufacturer $10,000,000,000 multiplied by
the manufacturer’s share of the total number of units of
tobacco products manufactured or imported in the United
States in 1997. Each manufacturer shall pay the assess-
ment to the United States Treasury not later than 90 days
after the date of the enactment of this Act.
(b) ANNUAL PAYMENTS.—By March 31 of each year
beginning in 1999, each manufacturer shall pay to the
United States Treasury the following amounts:
(1) 1999.—For tobacco products manufactured
or imported in the United States during calendar
year 1999, $0.50 per unit.
(2) 2000.—For tobacco products manufactured
or imported in the United States during calendar
year 2000, $1.00 per unit.
(3) 2001 
AND
THEREAFTER.—For tobacco
products manufactured or imported in the United
States during calendar year 2001 and thereafter,
$1.50 per unit.
(c) INFLATION ADJUSTMENT.—The amount of any
payment under subsection (b) shall be increased by the
percentage increase in the Consumer Price Index for all
urban consumers (all items, U.S. city average) from 1998
to the year before the year in which the payment is due.
(d) EXPORTS.—This section shall not apply to to-
bacco products manufactured or imported in the United
States for export.
SEC. 103. GENERAL PROVISIONS.
(a) FAILURE TO PAY.—If a manufacturer fails to
make a payment required under section 102 by the date
such payment is due, the Attorney General shall recover
the amount of the payment (plus interest at 1.5 times the
prevailing rate) in an action brought in an appropriate dis-
trict court of the United States.
(b) REGULATIONS.—
(1) PROMULGATION.—The Secretary may pro-
mulgate regulations to implement the requirements
of this title.
(2) COMPLIANCE.—An action may be brought
by the Secretary in an appropriate district court of
the United States to enjoin any failure to comply
with regulations under paragraph (1) or to impose
a civil penalty for such failure to comply of not more
than $25,000 per day.
(c) DEFINITION.—For purposes of this title, the term
‘‘Secretary’’ means the Secretary of the Treasury.
TITLE II—FDA JURISDICTION
OVER TOBACCO PRODUCTS
SEC. 201. REFERENCE.
Whenever in this title an amendment or repeal is ex-
pressed in terms of an amendment to, or repeal of, a sec-
tion or other provision, the reference shall be considered
to be made to a section or other provision of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).
SEC. 202. DEFINITIONS.
(a) DRUG.—Section 201(g)(1) (21 U.S.C. 321(g)(1))
is amended by striking ‘‘; and (D)’’ and inserting ‘‘; (D)
nicotine in tobacco products; and (E)’’.
bacco products and as provided in subsection (b)’’;
and
(2) by adding at the end the following:
‘‘TOBACCO PRODUCTS
‘‘(c) If the package or advertisement of a tobacco
product is required to bear a warning under this Act, no
statement relating to the use of the tobacco product and
health, other than a statement required under this Act,
may be required by any State or local statute or regulation
to be included on any package or in any advertisement
of such tobacco product.’’.
SEC. 204. VALIDATION OF THE FDA RULE.
(a) IN GENERAL.—All provisions of the regulations
related to tobacco products promulgated by the Secretary
of Health and Human Services on August 28, 1996 (61
Fed. Reg. 44396) shall be considered to be lawful, and
to have been lawfully promulgated, under the Federal
Food, Drug, and Cosmetic Act.
(b) EFFECTIVE DATE.—Provisions of such regula-
tions which are not in effect on the date of the enactment
of this Act shall take effect upon the expiration of 9
months after such date.
SEC. 205. SPECIAL PROVISIONS FOR TOBACCO PRODUCTS.
Chapter V is amended by adding at the end the fol-
lowing:
‘‘Subchapter F—Special Provisions for
Tobacco Products
‘‘SEC. 565. SPECIAL STANDARD FOR TOBACCO PRODUCTS.
‘‘In the case of tobacco products, an action that pro-
vides appropriate protection of public health shall be
deemed to provide a reasonable assurance of safety and
effectiveness.
‘‘SEC. 566. IMPLEMENTATION OF THE PROPOSED RESOLU-
TION.
‘‘(a) ADDITIONAL RESTRICTIONS
ON MARKETING,
ADVERTISING, AND ACCESS.—Not later than 18 months
after the date of the enactment of this subchapter, the
Secretary shall revise the regulations related to tobacco
products promulgated by the Secretary on August 28,
1996 (61 Fed. Reg. 44396) to include the additional re-
strictions on marketing, advertising, and access described
in Title IA and Title IC of the Proposed Resolution en-
tered into by the tobacco manufacturers and the State at-
torneys general on June 20, 1997, except that the Sec-
retary shall not include an additional restriction on mar-
keting or advertising in such regulations if its inclusion
would violate the First Amendment to the Constitution.
‘‘(b) WARNINGS.—
‘‘(1) CIGARETTES AND SMOKELESS TOBACCO.—
Not later than 18 months after the date of the en-
actment of this subchapter, the Secretary shall pro-
mulgate regulations to require warnings on cigarette
and smokeless tobacco labeling and advertisements.
The content, format, and rotation of warnings shall
conform to the specifications described in Title IB of
the Proposed Resolution entered into by the tobacco
manufacturers and the State attorneys general on
June 20, 1997.
‘‘(2) PROHIBITION.—It shall be unlawful to ad-
vertise tobacco products on any medium of electronic
communication subject to the jurisdiction of the
Federal Communications Commission.
‘‘(c) INGREDIENTS.—
‘‘(1) IN GENERAL.—Not later than 18 months
after the date of enactment of this subchapter, the
Secretary shall promulgate regulations relating to
ingredients in tobacco products. Except as provided
in paragraph (2), such regulations shall conform to
the specifications described in Title IF of the Pro-
posed Resolution entered into by the tobacco manu-
facturers and the State attorneys general on June
20, 1997.
‘‘(2) FAILURE TO ACT.—If the Secretary fails
to approve or disapprove an ingredient’s safety with-
in the review period prescribed under the regulations
under paragraph (1), such failure shall not be con-
sidered an approval of such ingredient.
‘‘(d) REDUCED-RISK PRODUCTS.—No manufacturer
of a tobacco product may state or imply in the labeling
or advertisements of the tobacco product that the tobacco
product presents a reduced risk to health unless the Sec-
retary has determined that the tobacco product does
present a significantly reduced risk to health.
‘‘(e) OTHER AUTHORITY.—This section does not
limit the authority the Secretary has under other provi-
sions of this Act with respect to tobacco products.
‘‘SEC. 567. STATE TOBACCO CONTROL PROGRAMS.
‘‘(a) IN GENERAL.—Effective 2 years after the date
of the enactment of this subchapter, a State may not re-
ceive a grant under subtitle B of title VIII of the Biparti-
san NO Tobacco for Kids Act of 1998 unless the State
has put into law a State tobacco control program that con-
forms to the model State program established by the Sec-
retary under subsection (b).
‘‘(b) MODEL STATE PROGRAM.—
‘‘(1) GENERAL RULE.—Within one year of the
date of the enactment of this subchapter, the Sec-
retary shall establish a model State tobacco control
program.
‘‘(2) PROGRAM CONTENT.—The model State to-
bacco control program established under paragraph
(1) shall—
‘‘(A) require persons who sell tobacco
products to individuals for personal consump-
tion to obtain a license from the State;
‘‘(B) require licensed retailers to comply
with the requirements under this Act that are
applicable to tobacco product retailers;
‘‘(C) prohibit any individual from purchas-
ing tobacco products for resale or distribution
to individuals under the age of 18;
‘‘(D) include minimum requirements for
the conduct and frequency of compliance in-
spections of licensed retailers;
‘‘(E) include State performance objectives,
including objectives for reducing the level of vio-
lations observed during compliance inspections;
‘‘(F) include provisions for appropriate
penalties for violations of the program require-
ments, including provisions for license suspen-
sion and revocation; and
‘‘(G) include such other provisions as the
Secretary determines are appropriate to protect
public health.
‘‘(c) FAILURE TO IMPLEMENT.—If a State fails to
effectively implement a State tobacco control program
which conforms to the Model State program established
under subsection (b) or if a State fails to achieve the per-
formance objectives applicable to the State under the
Model State program, the Secretary shall withhold up to
20 percent of the grant to the State under subtitle B of
title VIII of the Bipartisan NO Tobacco for Kids Act of
1998.
‘‘(d) FEDERAL LICENSING PROGRAM.—Within one
year of the date of the enactment of this subchapter, the
Secretary shall establish Federal licensing requirements
for—
‘‘(1) tobacco product retailers operating on
Federal property;
‘‘(2) tobacco product retailers operating in a
State which does not put into law or effectively im-
plement a State tobacco control program which con-
forms to the Model State Program; and
‘‘(3) such other tobacco product retailers as the
Secretary may specify.
The Federal tobacco control requirements shall conform
to the licensing requirements of the Model State Program.
‘‘(e) FEDERAL AUTHORITY.—The Secretary may
order a retailer licensed by a State to suspend or cease
selling tobacco products if the tobacco product retailer is
in violation of a requirement under this Act related to to-
bacco products.
‘‘(f) INDIAN TRIBES.—In the case of tobacco product
retailers operating on Indian reservations, the governing
Indian tribe or tribal organization shall be treated as a
State.’’.
SEC. 206. GENERAL PROVISIONS.
(a) ENFORCEMENT.—Section 301 (21 U.S.C. 331) is
amended by adding at the end the following:
‘‘(aa) The violation of any requirement under this Act
relating to tobacco products.’’.
(b) ACCESS
TO INFORMATION.—Section 701 (21
U.S.C 371) is amended by adding at the end the following:
‘‘(h) To acquire information related to tobacco prod-
ucts, the Secretary may administer oaths and require the
testimony of witnesses and the production of documents
and other materials. The Secretary may disclose to the
public information acquired under this subsection if the
Secretary determines that disclosure is appropriate to pro-
tect public health.’’.
SEC. 207. REPEAL.
The Federal Cigarette Labeling and Advertising Act
(15 U.S.C. 1331 et seq.) and the Comprehensive Smoke-
less Tobacco Health Education Act of 1986 (15 U.S.C.
4401 et seq.) are repealed on the date the regulations de-
scribed in section 566(b) of the Federal Food, Drug, and
Cosmetic Act take effect.
TITLE 
III—PERFORMANCE 
OB-
JECTIVES TO REDUCE CHILD
TOBACCO USE
SEC. 301. ANNUAL PERFORMANCE SURVEYS.
Within 1 year after the date of the enactment of this
Act and annually thereafter the Secretary shall conduct
a survey to determine for each manufacturer the percent-
age of children who use a tobacco product of the manufac-
turer.
SEC. 302. PERFORMANCE OBJECTIVES.
(a) PERFORMANCE
OBJECTIVES
FOR
EXISTING
MANUFACTURERS.—Each existing manufacturer shall
have as a performance objective the reduction of its child
tobacco use level below its baseline level by at least the
following percentage of its baseline level:
(1) In the third and fourth annual performance
surveys, 33 percent.
(2) In the fifth and sixth annual performance
surveys, 50 percent.
(3) In the seventh, eighth, and ninth annual
performance surveys, 67 percent.
(4) In the tenth and each succeeding annual
performance survey, 80 percent.
However, in no case is the performance objective for a
manufacturer to reduce its child tobacco use level below
the de minimis level.
(b) PERFORMANCE OBJECTIVES FOR NEW MANU-
FACTURERS.—Beginning with the third annual perform-
ance survey, a new manufacturer shall have as its per-
formance objective maintaining its child tobacco use level
at no more than the de minimis level.
(c) LEVELS.—For purposes of this title:
(1) BASELINE
LEVEL.—The baseline level of
each manufacturer is the manufacturer’s child to-
bacco use level determined in the first annual per-
formance survey.
(2) DE MINIMIS LEVEL.—The de minimis level
is 0.5 percent of children.
SEC. 303. ADDITIONAL MEASURES TO REDUCE CHILD TO-
BACCO USE.
(a) SECRETARIAL DETERMINATION.—Before the end
of the third year after the date of the enactment of this
Act and annually thereafter, the Secretary shall, based on
the annual performance survey conducted for such year,
determine if each manufacturer has achieved the applica-
ble performance objective under section 302. The Sec-
retary shall publish in the Federal Register such deter-
mination and any additional measures required under this
section.
(b) FAILURE TO ACHIEVE.—If the Secretary deter-
mines under subsection (a) that a manufacturer has failed
to achieve the applicable performance objective for an an-
nual performance survey, the additional measures speci-
fied in this section shall be required to further reduce the
manufacturer’s child tobacco use level.
(c) FIRST FAILURE.—If the Secretary determines
under subsection (a) that a manufacturer has failed to
achieve the applicable performance objective for an annual
performance survey and the manufacturer did not so fail
with respect to the prior survey, the manufacturer shall
for each unit of its tobacco products increase the price
it charges by—
(1) $0.01 for each of the first 10 percentage
points by which the manufacturer fails to achieve its
performance objective; plus
(2) $0.02 for each of the second 10 percentage
points, if any, by which the manufacturer fails to
achieve its performance objective; plus
(3) $0.03 for each additional percentage point
over 21, if any, by which the manufacturer fails to
achieve its performance objective.
(d) SECOND FAILURE.—If the Secretary determines
under subsection (a) that a manufacturer has failed to
achieve the applicable performance objective for an annual
performance survey and such failure is the manufacturer’s
second consecutive failure, the manufacturer shall for each
unit of its tobacco products increase the price it charges
by twice the level required under subsection (c).
(e) THIRD FAILURE.—If the Secretary determines
under subsection (a) that a manufacturer has failed to
achieve the applicable performance objective for an annual
performance survey and such failure is the manufacturer’s
third consecutive failure, the following additional measures
shall apply:
(1) The manufacturer shall for each unit of its
tobacco products increase the price it charges by the
level prescribed by subsection (d).
(2) No retailer may sell the tobacco products of
the manufacturer in quantities smaller than a car-
ton.
(f) FOURTH
AND SUCCESSIVE FAILURES.—If the
Secretary determines under subsection (a) that a manu-
facturer has failed to achieve the applicable performance
objective for an annual performance survey and such fail-
ure is the manufacturer’s fourth or more consecutive fail-
ure, the following additional measures shall apply:
(1) The manufacturer shall for each unit of its
tobacco products increase the price it charges by the
level prescribed by subsection (d).
(2) No retailer may sell the tobacco products of
the manufacturer in quantities smaller than a car-
ton.
(3) The manufacturer may package its tobacco
products only in packages that bear only black text
on a white background except for warning labels
that are required to appear in a different format.
(g) EFFECTIVE DATES.—
(1) PRICE INCREASES.—If the Secretary deter-
mines under subsection (a) that a manufacturer has
failed to achieve the applicable performance objective
for an annual performance survey, the price increase
that is required under this section as a result of
such determination shall apply to each unit of its to-
bacco products manufactured or imported in the
United States during the 12-month period beginning
30 days after the determination, except that such
price increase shall not apply to tobacco products
that are manufactured or imported by the manufac-
turer for export.
(2) NON-MONETARY
MEASURES.—The Sec-
retary shall by regulation prescribe an effective date
that is as expeditious as practicable for the non-
monetary additional measures described in sub-
sections (e) and (f). Such measures shall remain in
effect until the Secretary determines under sub-
section (a) that the manufacturer has achieved the
applicable performance objective for an annual per-
formance survey.
(h) ADJUSTMENTS.—
(1) GENERAL RULE.—The amount of any price
increase that is required under this section shall be
increased by the percentage increase in the Con-
sumer Price Index for all urban consumers (all
items, U.S. city average) from 1998 to the year be-
fore the year in which the price increase takes effect.
(2) LIMITATION.—The maximum price increase
that shall be required under this section for a unit
of a tobacco product is $2 plus an adjustment for
inflation under paragraph (1).
(i) CALCULATION
OF PERCENTAGE POINTS.—For
purposes of determining the level of price increase under
this section, the number of percentage points by which a
manufacturer fails to achieve a performance objective shall
be calculated as follows:
(1) MANUFACTURER WITH CHILD TOBACCO USE
LEVEL AT OR BELOW ITS BASELINE LEVEL.—If the
manufacturer is an existing manufacturer which has
a baseline level above the de minimis level and a
child tobacco use level equal to or below its baseline
level, the number of percentage points shall equal
the difference between the percentage reduction in
its child tobacco use level required to meet the appli-
cable performance objective and the percentage re-
duction in its child tobacco use level achieved by the
manufacturer.
(2) MANUFACTURER WITH CHILD TOBACCO USE
LEVEL ABOVE ITS BASELINE LEVEL.—If the manu-
facturer is an existing manufacturer which has a
baseline level above the de minimis level and a child
tobacco use level above its baseline level, the number
of percentage points shall equal the sum of the per-
centage reduction in its child tobacco use level re-
quired to meet the applicable performance objective
and the percentage by which its child tobacco use
level exceeds its baseline level.
(3) EXISTING MANUFACTURER WITH A BASE-
LINE
LEVEL
BELOW
THE
DE
MINIMIS
LEVEL
OR
NEW MANUFACTURER.—If the manufacturer is an
existing manufacturer which has a baseline level
below the de minimis level or if the manufacturer is
a new manufacturer, the number of percentage
points shall equal the percentage by which its child
tobacco use level exceeds the de minimis level.
SEC. 304. PROCEEDS OF PRICE INCREASES.
(a) PAYMENT.—A manufacturer that is required to
increase prices under section 303 shall pay into an account
in the United States Treasury an amount equal to the
amount of the increase multiplied by the number of units
of the product to which the increase is required to be ap-
plied under such section. Such amount shall be paid by
a manufacturer on a quarterly basis within 30 days after
the end of each quarter in which the price increase is in
effect.
(b) USE OF FUNDS.—Funds in the account referred
to in subsection (a) shall be available to the Secretary,
without fiscal year limitation, to enforce this title and
other laws relating to tobacco use by children and for pub-
lic awareness campaigns and other initiatives designed to
discourage children from using tobacco products and prod-
ucts described in section 306(b)(2).
SEC. 305. JUDICIAL REVIEW.
(a) IN GENERAL.—An action of the Secretary under
this title is not subject to judicial review until the Sec-
retary has made or failed to make a compliance determina-
tion under section 303(a) that has adversely affected the
person seeking the review. An action for review may only
be brought in the United States District Court for the Dis-
trict of Columbia. In an action seeking review of such de-
termination the person seeking review—
(1) shall have the burden of demonstrating the
actual reduction of the manufacturer’s child tobacco
use level; and
(2) may prevail only to the extent that the per-
son demonstrates that such reduction is different
than the reduction the Secretary used in making
such determination.
(b) NO STAY.—Section 705 of title 5, United States
Code, shall not apply with respect to any action under sub-
section (a).
(c) INTEREST.—If the judgment of a court in an ac-
tion under subsection (a) results in the reduction of a pay-
ment paid by a manufacturer under section 304, the man-
ufacturer shall be paid from the account referred to in
such section an amount equal to the amount of such re-
duction and interest on such amount. If the judgment of
a court in an action under subsection (a) results in the
increase in the amount to be paid by a manufacturer
under section 304, the manufacturer shall pay to such ac-
count an amount equal to the amount of such increase
and interest on such amount.
SEC. 306. GENERAL PROVISIONS.
(a) ENFORCEMENT.—Section 301 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amend-
ed by adding at the end the following:
‘‘(bb) The failure to comply with a requirement under
section 303, 304, 305, or 306 of Bipartisan NO Tobacco
for Kids Act of 1998.’’.
(b) REGULATIONS.—
(1) GENERAL RULE.—The Secretary may pro-
mulgate regulations for the implementation of this
title.
(2) ADDITIONAL
AUTHORITY.—For products
(other than cigarettes and smokeless tobacco) made
or derived from tobacco that are intended for human
consumption the Secretary may by regulation estab-
lish performance objectives under section 302 relat-
ing to the use of such products by children and may
require additional measures under section 303 for
failure to achieve the objectives.
(c) ADMINISTRATION OF SURVEYS.—
(1) STATISTICAL ACCURACY OF SURVEYS.—The
annual performance surveys conducted by the Sec-
retary under section 301(a) shall be designed so that
if a manufacturer had a child tobacco use level that
is equal to 50 percent, the 95 percent confidence in-
terval would be no greater than plus or minus 1 per-
centage point.
(2) SURVEY
CONDITIONS.—The annual per-
formance surveys shall—
(A) be household-based surveys; and
(B) not be subject to State or local regula-
tion or chapter 35 of title 44, United States
Code.
(3) CONFIDENTIALITY.—The Secretary shall
not disclose information that may identify a child
surveyed in an annual performance survey unless the
child (or the child’s parent or guardian) has con-
sented to such disclosure.
(4) TECHNICAL ADJUSTMENTS.—The Secretary
may make technical adjustments in the manner in
which annual performance surveys are conducted if
adjustments are made to insure that the results of
the surveys are comparable from year to year.
SEC. 307. USE OF TOBACCO PRODUCTS AMONG MINORITY
POPULATIONS.
As part of each annual survey, the Secretary shall
determine the child tobacco use level for children of dif-
ferent racial and ethnic backgrounds. If the Secretary de-
termines that the child tobacco use level is increasing, or
is not decreasing at a proportionate rate, among children
of a racial or ethnic background, the Secretary shall report
such determination to Congress along with recommenda-
tions for reducing such level for children of such racial
or ethnic background.
SEC. 308. DEFINITIONS.
For purposes of this title:
(1) ANNUAL
PERFORMANCE
SURVEY.—The
term ‘‘annual performance survey’’ means a survey
conducted by the Secretary annually under section
301.
(2) CHILDREN.—The term ‘‘children’’ means
individuals under the age of 18 and above the age
of 11 who are residents of the United States.
(3) CHILD
TOBACCO
USE
LEVEL.—The term
‘‘child tobacco use level’’ means, with respect to a
manufacturer and an annual performance survey,
the percentage of children who use the manufactur-
er’s tobacco products as determined in an annual
performance survey or under section 305(a)
(4) EXISTING MANUFACTURER.—The term ‘‘ex-
isting manufacturer’’ means a manufacturer which
manufactured or imported a tobacco product on or
before the date of the enactment of this Act.
(5) NEW
MANUFACTURER.—The term ‘‘new
manufacturer’’ means any manufacturer other than
an existing manufacturer.
(6) TOBACCO
PRODUCT.—The term ‘‘tobacco
product’’ means a cigarette or smokeless tobacco.
(7) USE.—A child shall be considered to use a
manufacturer’s tobacco product if the manufactur-
er’s tobacco product is the usual brand of tobacco
product used by the child in the last 30 days.
TITLE IV—SMOKE-FREE
ENVIRONMENTS
SEC. 401. SMOKE-FREE ENVIRONMENT POLICY.
(a) POLICY REQUIRED.—In order to protect children
and adults from cancer, respiratory disease, heart disease,
and other adverse health effects from breathing environ-
mental tobacco smoke, the responsible entity for each pub-
lic facility shall adopt and implement at such facility a
smoke-free environment policy which meets the require-
ments of subsection (b).
(b) ELEMENTS OF POLICY.—Each smoke-free envi-
ronment policy for a public facility shall—
(1) prohibit the smoking of cigarettes, cigars,
and pipes, and any other combustion of tobacco,
within the facility and on facility property within the
immediate vicinity of the entrance to the facility;
and
(2) post a clear and prominent notice of the
smoking prohibition in appropriate and visible loca-
tions at the public facility.
The policy may provide an exception to the prohibition
specified in paragraph (1) for one or more specially des-
ignated smoking areas within a public facility if such area
or areas meet the requirements of subsection (c).
(c) SPECIALLY DESIGNATED SMOKING AREAS.—A
specially designated smoking area meets the requirements
of this subsection if it satisfies each of the following condi-
tions:
(1) The area is ventilated in accordance with
specifications promulgated by the Administrator that
insure that air from the area is directly exhausted
to the outside and does not recirculate or drift to
other areas within the public facility.
(2) Nonsmoking individuals do not have to
enter the area for any purpose while smoking is oc-
curring.
(3) Children are prohibited from entering the
area.
SEC. 402. CITIZEN ACTIONS.
(a) IN GENERAL.—An action may be brought to en-
force the requirements of this title by any aggrieved per-
son, any State or local government agency, or the Admin-
istrator.
(b) VENUE.—Any action to enforce this title may be
brought in any district court of the United States for the
district in which the defendant resides or is doing business
to enjoin any violation of this title or to impose a civil
penalty for any such violation in the amount of not more
than $5,000 per day of violation. The district courts shall
have jurisdiction, without regard to the amount in con-
troversy or the citizenship of the parties, to enforce this
title and to impose civil penalties under this title.
(c) NOTICE.—An aggrieved person shall give any al-
leged violator notice of at least 60 days prior to commenc-
ing an action under this section. No action may be com-
menced by an aggrieved person under this section if such
alleged violator complies with the requirements of this title
within such 60-day period and thereafter.
(d) COSTS.—The court, in issuing any final order in
any action brought pursuant to this section, may award
costs of litigation (including reasonable attorney and ex-
pert witness fees) to any prevailing party, whenever the
court determines such award is appropriate.
(e) PENALTIES.—The court in any action under this
section to apply civil penalties shall have discretion to
order that such civil penalties be used for projects which
further the policies of this title. The court shall obtain the
view of the Administrator in exercising such discretion and
selecting any such projects.
(f) DAMAGES.—No damages of any kind, whether
compensatory or punitive, shall be awarded in actions
brought pursuant to this title.
(g) ISOLATED INCIDENTS.—Violations of the prohibi-
tion specified in section 401(b)(1) by an individual within
a facility or on facility property shall not be considered
violations of this title on the part of the responsible entity
if such violations—
(1) are isolated incidents that are not part of
a pattern of violations of such prohibition; and
(2) are not authorized by the responsible entity.
SEC. 403. REGULATIONS.
(a) IN GENERAL.—The Administrator is authorized
to promulgate such regulations as the Administrator
deems necessary to carry out this title.
(b) OTHER FACILITIES.—The Administrator may by
regulation extend the requirement of section 401 to adopt
and implement a smoke-free environment policy to the fa-
cilities described in subparagraphs (B) through (E) of sec-
tion 404(2) if the Administrator determines that such an
action is appropriate to protect the public health.
SEC. 404. DEFINITIONS.
As used in this title:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) PUBLIC FACILITY.—The term ‘‘public facil-
ity’’ means any building in which activities substan-
tially affecting interstate commerce occur, including
any such building owned by or leased to a Federal,
State, or local government entity. Such term shall
not include—
(A) any portion of a building regularly
used for residential purposes;
(B) any commercial establishment engaged
primarily in the sale of alcoholic beverages for
consumption on the premises;
(C) any private club while in use for social
or fraternal activities that are not open to the
public;
(D) any jail or other prison facility; and
(E) any commercial establishment pri-
marily engaged in the sale of tobacco and to-
bacco related products.
(3) RESPONSIBLE ENTITY.—The term ‘‘respon-
sible entity’’ means, with respect to any facility, the
owner of such facility, except that in the case of any
such facility or portion thereof which is leased, such
term means the lessee.
SEC. 405. PREEMPTION.
Nothing in this title shall preempt or otherwise affect
any other Federal, State or local law which provides pro-
tection from health hazards from environmental tobacco
smoke.
SEC. 406. EFFECTIVE DATE.
The requirements of this title shall take effect on the
date one year after the date of the enactment of this Act.
TITLE V—TOBACCO
PREVENTION INITIATIVES
SEC. 501. NATIONAL PUBLIC AWARENESS CAMPAIGN.
From funds paid to the United States Treasury
under section 102(b) in each year there shall be made
available to the Secretary, without fiscal year limitation,
$500,000,000 for a national public awareness campaign
to discourage the use of tobacco products.
SEC. 502. FEDERAL IMPLEMENTATION.
From funds paid to the United States Treasury
under section 102(b) in each year there shall be made
available to the Secretary, without fiscal year limitation,
$300,000,000 for the implementation and enforcement
of—
(1) the provisions of the Federal Food, Drug,
and Cosmetic Act relating to tobacco products;
(2) the requirements of title III;
(3) the provisions of this Act relating to the To-
bacco Accountability Board.
SEC. 503. TOBACCO USE CESSATION.
(a) PROGRAMS AND ACTIVITIES.—From funds paid
to the United States Treasury under section 102(b) in
each year there shall be made available to the Secretary,
without fiscal year limitation, $200,000,000 for tobacco
use cessation programs. Such programs shall be programs
which the Secretary finds either are consistent with the
most recent tobacco use cessation guidelines issued by the
Agency for Health Care Policy and Research or are ap-
proved as safe and effective for tobacco use cessation by
the Secretary acting through the Food and Drug Adminis-
tration.
(b) GRANTS.—The Secretary shall use funds made
available under subsection (a) to make grants for tobacco
use cessation programs to—
(1) Federally-qualified health centers as defined
in section 1905(l)(2)(B) of the Social Security Act
(42 U.S.C. 1396d(l)(2)(B));
(2) rural health clinics as defined in section
1905(l)(1) of the Social Security Act (42 U.S.C.
1396(l)(1)); and
(3) other public and nonprofit entities that de-
liver primary care funded under the Public Health
Service Act.
SEC. 504. RESEARCH AND SURVEILLANCE.
From funds paid to the United States Treasury
under section 102(b) in each year there shall be made
available to the Secretary, without fiscal year limitation,
$1,000,000,000 to fund—
(1) research related to nicotine addiction, to-
bacco use cessation, prevention of the use of tobacco
products, and other tobacco related matters; and
(2) surveillance and epidemiology research re-
lated to tobacco.
SEC. 505. MINORITY POPULATIONS.
The Secretary shall ensure that—
(1) the national public awareness campaign
funded under section 501,
(2) the tobacco use cessation programs funded
under section 503, and
(3) the research and surveillance funded under
section 504,
take into account the needs of minority populations and
are age appropriate, culturally appropriate, and linguis-
tically appropriate for such populations.
SEC. 506. INFLATION ADJUSTMENT.
Each of the amounts made available to the Secretary
under sections 501, 502, 503, and 504 shall be increased
by the percentage increase in the Consumer Price Index
for all urban consumers (all items, U.S. city average) from
1998 to the year before the year in which such amount
is made available.
TITLE VI—INTERNATIONAL
TOBACCO CONTROL
SEC. 601. SALE, DISTRIBUTION, AND ADVERTISING OF TO-
BACCO PRODUCTS IN FOREIGN COUNTRIES.
(a) AMENDMENT TO CHAPTER VIII.—Chapter VIII
of the Federal Food, Drug, and Cosmetic Act is amended
by adding at the end the following:
‘‘SEC. 804. SALE, DISTRIBUTION, AND ADVERTISING OF TO-
BACCO PRODUCTS IN FOREIGN COUNTRIES.
‘‘(a) REGULATIONS.—Not later than 2 years after
the date of the enactment of this section, the Secretary
shall promulgate regulations to—
‘‘(1) prohibit domestic concerns from selling or
distributing tobacco products in a foreign country
without warning labels that are appropriate to pro-
tect public health in such country;
‘‘(2) prohibit domestic concerns from—
‘‘(A) selling or distributing tobacco prod-
ucts in a foreign country to children; or
‘‘(B) advertising or promoting tobacco
products in a foreign country in a manner that
appeals to children;
‘‘(3) require domestic concerns to ensure that
any person under the control of a domestic concern
does not engage in conduct that would be prohibited
under this section if engaged in by the domestic con-
cern; and
‘‘(4) require domestic concerns to take all fea-
sible measures to ensure that tobacco products bear-
ing a brand name controlled or used by a domestic
concern are not sold, distributed, advertised, or pro-
moted in a manner that would be prohibited under
this section if engaged in by a domestic concern.
‘‘(b) INTERPRETATION.—For purposes of this sec-
tion, advertising or promoting tobacco products in a man-
ner that would not be lawful under this Act if it occurred
in the United States shall be deemed to be advertising or
promotion that appeals to children.
‘‘(c) DEFINITION.—The term ‘domestic concern’
means—
‘‘(1) any individual who is a citizen, national, or
resident of the United States; and
‘‘(2) any corporation, partnership, association,
joint-stock company, business trust, unincorporated
organization, or sole proprietorship which has its
principal place of business in the United States or
which is organized under the laws of a State of the
United States or a territory, possession, or common-
wealth of the United States.’’.
(b) ENFORCEMENT.—Section 301 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C 331), as amend-
ed by section 306) is amended by adding at the end the
following:
‘‘(cc) The violation of any requirement under section
804.’’.
SEC. 602. PROHIBITION ON FEDERAL EFFORTS TO PRO-
MOTE TOBACCO EXPORTS.
(a) IN GENERAL.—No officer, employee, department,
or agency of the United States may—
(1) promote or encourage the export, re-export,
sale, manufacture, advertising, promotion, distribu-
tion, or use of tobacco or tobacco products to or in
a foreign country; or
(2) seek, through negotiation or otherwise, the
removal or reduction by any foreign country of any
restriction or proposed restriction in that country on
the importation, export, re-export, sale, manufac-
ture, advertising, promotion, distribution, packaging,
labeling, use, content, imposition of tariffs, or tax-
ation, of tobacco or tobacco products.
(b) EXCEPTION.—Subsection (a)(2) shall not apply
to any restriction or proposed restriction by a foreign
country if—
(1) the restriction is applied in a manner which
constitutes a means of arbitrary or unjustifiable dis-
crimination between countries;
(2) the Secretary of Commerce certifies in writ-
ing to Congress that the restriction is being applied
in a manner that constitutes a means of arbitrary or
unjustifiable discrimination between countries; and
(3) the Secretary of Health and Human Serv-
ices certifies to Congress in writing that the restric-
tion is not a reasonable means of protecting the pub-
lic health.
(c) DEFINITION.—In this section, the term ‘‘arbi-
trary or unjustifiable discrimination’’ means a restriction
or proposed restriction by a foreign country that—
(1) is arbitrary or unjustifiable; and
(2) does not adhere to the principle of national
treatment and applies less favorable treatment to
goods that are imported into that country than the
country applies to like goods that are the product,
growth, or manufacture of that country.
SEC. 603. INTERNATIONAL TOBACCO CONTROL TRUST
FUND.
(a) ESTABLISHMENT.—There is established in the
United States Treasury an International Tobacco Control
Trust Fund which shall be funded by payments collected
under section 605.
(b) USE OF TRUST FUND.—Funds from the Inter-
national Tobacco Control Trust Fund shall be available
for use as follows:
(1) AMERICAN
CENTER
ON
GLOBAL
HEALTH
AND
TOBACCO.—$150,000,000 shall be available,
without fiscal year limitation, each year for the
American Center on Global Health and Tobacco.
(2) HEALTH AND HUMAN SERVICES.—The Sec-
retary may, without fiscal year limitation, use funds
from the International Tobacco Control Trust Fund
to fund grants and other forms of assistance to for-
eign governments, nongovernment organizations, and
international organizations to support tobacco con-
trol activities in foreign countries.
(3) ENFORCEMENT.—The Secretary may, with-
out fiscal year limitation, use funds from the Inter-
national Tobacco Control Trust Fund for enforce-
ment of any requirement related to the sale, dis-
tribution, marketing, or promotion of tobacco prod-
ucts in foreign countries.
SEC. 604. AMERICAN CENTER ON GLOBAL HEALTH AND TO-
BACCO.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established in the
District of Columbia a private, nonprofit corporation
to be known as the American Center on Global
Health and Tobacco (in this section referred to as
‘‘ACT’’). ACT shall assist organizations in foreign
countries to reduce and prevent the use of tobacco
products. Activities that ACT shall support shall in-
clude—
(A) public awareness campaigns to discour-
age the use of tobacco products;
(B) youth oriented and community-based
programs to discourage the use of tobacco prod-
ucts; and
(C) other public health activities related to
tobacco products.
(2) LEGAL STATUS.—ACT shall
(A) not be an agency or establishment of
the United States; and
(B) except as otherwise provided in this
section, be subject to, and have all the powers
conferred upon a nonprofit corporation by, the
District of Columbia Nonprofit Corporation Act
(D.C. Code section 29-501 et seq.).
(b) GOVERNING BOARD.—
(1) APPOINTMENTS.—ACT shall be governed by
a board of trustees. The Secretary shall appoint the
initial members of the board within 90 days of the
date of the enactment of this Act. Such initial mem-
bers shall be appointed on the basis of expertise in
tobacco control, public awareness campaigns, inter-
national affairs, and other relevant fields.
(2) TERMS.—The term of office of a member of
the board shall be 6 years, except that (as des-
ignated by the Secretary) of the members appointed
by the Secretary one-third of the members shall have
a term of 2 years and another one-third of the mem-
bers shall have a term of 4 years.
(c) AUDITS.—The accounts of ACT shall be audited
annually in accordance with generally accepted auditing
standards by independent certified public accountants.
(d) REPORT.—Not later than December 31 of each
year, ACT shall submit an annual report to Congress. The
report shall include a report of ACT’s operations, activi-
ties, financial condition, and accomplishments under this
section and may include such recommendations as ACT
deems appropriate.
SEC. 605. ASSESSMENT ON TOBACCO PRODUCTS MANUFAC-
TURED IN A FOREIGN COUNTRY.
(a) ASSESSMENT.—By March 31 of each year begin-
ning in 1999, each domestic concern that manufactures
tobacco products in a foreign country or that controls a
person that manufactures tobacco products in a foreign
country shall pay to the International Tobacco Control
Trust Fund $0.05 per unit of tobacco product manufac-
tured by the domestic concern (or a person controlled by
the domestic concern) in a foreign country in the prior
year.
(b) FAILURE TO PAY.—If a manufacturer fails to
make a payment required under subsection (a) by the date
such payment is due, the Attorney General shall recover
the amount of the payment (plus interest at 1.5 times the
prevailing rate) in an action brought in an appropriate dis-
trict court of the United States.
(c) REGULATIONS.—
(1) PROMULGATION.—The Secretary of the
Treasury may promulgate regulations to implement
the requirements of this section.
(2) COMPLIANCE.—An action may be brought
by the Secretary of the Treasury in an appropriate
district court of the United States to enjoin any fail-
ure to comply with regulations under paragraph (1)
or to impose a civil penalty for such failure to com-
ply of not more than $25,000 per day.
(d) DEFINITION.—The term ‘‘domestic concern’’
means—
(1) any individual who is a citizen, national, or
resident of the United States; and
(2) any corporation, partnership, association,
joint-stock company, business trust, unincorporated
organization, or sole proprietorship which has its
principal place of business in the United States or
which is organized under the laws of a State of the
United States or a territory, possession, or common-
wealth of the United States.
SEC. 606. PREVENTION OF TOBACCO SMUGGLING.
Chapter VIII of the Federal Food, Drug, and Cos-
metic Act (as amended by section 601) is amended by add-
ing at the end the following:
‘‘SEC. 805. PREVENTION OF TOBACCO SMUGGLING.
‘‘Not later than 2 years after the date of the enact-
ment of this Act, the Secretary of the Treasury, in con-
sultation with the Secretary of Health and Human Serv-
ices, shall promulgate regulations to reduce, to the maxi-
mum extent feasible, the smuggling of tobacco products
in interstate and foreign commerce. Such regulations may
include licensing, labeling, bonding, and other appropriate
requirements.’’.
SEC. 607. SENSE OF CONGRESS.
It is the sense of Congress that the United States
government should support the development, adoption,
and implementation of the International Framework Con-
vention on Tobacco Control through all available re-
sources, including direct financial support, technical as-
sistance, and any other appropriate measure.
TITLE VII—TOBACCO
ACCOUNTABILITY BOARD
SEC. 701. TOBACCO ACCOUNTABILITY BOARD.
(a) ESTABLISHMENT.—There is established an inde-
pendent board to be known as the Tobacco Accountability
Board.
(b) MEMBERSHIP.—The Board shall consist of 5
members with expertise relating to tobacco and public
health. The members, including the chair, shall be ap-
pointed by the Secretary of Health and Human Services.
The initial members of the Board shall be appointed by
the Secretary within 30 days of the date of the enactment
of this Act. A member of the Board may be removed by
the Secretary only for neglect of duty or malfeasance in
office.
(c) TERMS.—The term of office of a member of the
Board shall be 6 years, except that the members first ap-
pointed shall have terms of 2, 3, 4, and 5 years, respec-
tively, as determined by the Secretary.
SEC. 702. DISCLOSURE OF TOBACCO INDUSTRY DOCU-
MENTS.
(a) SUBMISSION
BY MANUFACTURERS.—Not later
than 3 months after the date of the enactment of this Act
and thereafter as required by the Board, each tobacco
manufacturer shall submit to the Board a copy of all docu-
ments in the manufacturer’s possession—
(1) relating to—
(A) any health effects, including addiction,
caused by the use of tobacco products;
(B) the manipulation or control of nicotine
in tobacco products; or
(C) the sale or marketing of tobacco prod-
ucts to children; or
(2) produced, or ordered to be produced, by the
tobacco manufacturer in the case entitled State of
Minnesota v. Philip Morris, Inc, Civ. Action No. C1–
94–8565 (Ramsey County, Minn.).
(b) DISCLOSURE BY THE BOARD.—Not later than 9
months after the date of the enactment of this Act and
thereafter as required by the Board, the Board shall, sub-
ject to subsection (c), make available to the public the doc-
uments submitted under subsection (a). Documents made
public by the Board shall be considered authenticated with
the same legal status as the original in any court action
related to tobacco products.
(c) PROTECTION OF TRADE SECRETS.—The Board
shall not disclose information that is entitled to protection
as a trade secret unless the Board determines that disclo-
sure of such information is appropriate to protect the pub-
lic health. This subsection shall not prevent the disclosure
of relevant information to Federal agencies or to the Con-
gress.
SEC. 703. INVESTIGATION AND ANNUAL REPORTS.
The Board shall investigate all matters relating to to-
bacco products and public health and report annually on
the results of the investigation to Congress. Each annual
report to Congress shall, at a minimum, disclose—
(1) any efforts by tobacco manufacturers to
conceal research relating to the adverse health ef-
fects or addiction caused by the use of tobacco prod-
ucts;
(2) any efforts by tobacco manufacturers to
mislead the public or any Federal, State, or local
elected body, agency, or court about the adverse
health effects or addiction caused by the use of to-
bacco products;
(3) any efforts by tobacco manufacturers to sell
or market tobacco products to children; and
(4) any efforts by tobacco manufacturers to cir-
cumvent, repeal, modify, impede the implementation
of, or prevent the adoption of, any Federal, State,
or local law or regulation related to tobacco prod-
ucts.
SEC. 704. AUTHORITIES.
The Board, any member of the Board, or staff des-
ignated by the Board may hold hearings, administer oaths,
require the testimony or deposition of witnesses, the pro-
duction of documents, or the answering of interrogatories,
or, upon presentation of the proper credentials, enter and
inspect facilities.
SEC. 705. ENFORCEMENT.
Any action may be brought by the Board in an appro-
priate district court of the United States to enjoin any
failure to comply with an requirement under this title or
to impose a civil penalty for such failure to comply of not
more than $25,000 per day.
SEC. 706. ADMINISTRATION.
(a) STAFF.—The Chair shall exercise the executive
and administrative functions of the Board and shall have
the authority to hire such staff as may be necessary for
the operation of the Board.
(b) SALARIES.—The members of the Board shall re-
ceive such salary and benefits as the Secretary deems nec-
essary, except that the salary of the Chair shall not be
less than level III of the Executive Schedule (5 U.S.C.
5314).
SEC. 707. WHISTLEBLOWER PROTECTIONS.
(a) PROHIBITION OF REPRISALS.—An individual may
not be discharged, demoted, or otherwise discriminated
against as a reprisal for disclosing to the Board, the Food
and Drug Administration, the Department of Health and
Human Services, the Department of Justice, the Con-
gress, or any State or local authority information relating
to a violation of law related to tobacco products.
(b) ENFORCEMENT.—Any individual who believes
that such individual has been discharged, demoted, or oth-
erwise discriminated against in violation of subsection (a)
may file a civil action in an appropriate district court of
the United States before the end of the 2-year period be-
ginning on the date of such discharge, demotion, or dis-
crimination.
(c) REMEDIES.—If the district court determines that
a violation of subsection (a) has occurred, the court may
order—
(1) the reinstatement of the individual to the
individual’s former position;
(2) payment of compensatory damages; or
(3) any other appropriate action.
(d) LIMITATION.—The protections of this section
shall not apply to any individual who—
(1) deliberately causes or participates in the al-
leged violation of law; or
(2) knowingly or recklessly provides substan-
tially false information to the Board, the Food and
Drug Administration, the Department of Health and
Human Services, the Department of Justice, or any
State or local authority.
(e) APPLICATION OF FALSE CLAIMS ACT.—Section
3730(d) of title 31, United States Code, shall apply with
respect to any individual to which this section applies if
the disclosure of such individual results in a payment of
any fee or fine to the Federal Government, regardless of
whether such individual ever commenced an action con-
cerning the disclosure.
SEC. 708. DEFINITIONS.
For purposes of this title:
(1) BOARD.—The term ‘‘Board’’ means the To-
bacco Accountability Board.
(2) TOBACCO MANUFACTURER.—The term ‘‘to-
bacco manufacturer’’ means—
(A) any manufacturer as defined in section
901; or
(B) the Tobacco Institute, the Council for
Tobacco Research, the Smokeless Tobacco
Council, the Center for Indoor Air Research, or
any other trade association or entity that is pri-
marily funded by persons who manufacture or
import a tobacco product.
TITLE VIII—PAYMENTS TO
STATES
Subtitle A—Resolution of State
Actions
SEC. 801. STATE ELECTIONS.
(a) IN GENERAL.—Any State may elect to receive
payments under section 802 in lieu of seeking recovery
from manufacturers for health care costs attributable to
the use of tobacco products. Any such election must be
submitted by the State to the Secretary of the Treasury
within one year after the date of the enactment of this
Act.
proportionate to the portion of the health care costs attrib-
utable to the use of tobacco products in the State incurred
by the local government. A State that fails to pass through
payments to local governments as required by this sub-
section shall not be eligible to receive future payments
under subsection (a).
SEC. 803. EXEMPT MANUFACTURERS.
(a) EXEMPTION.—A manufacturer described in sub-
section (b) shall not be required to pay—
(1) that portion of an annual payment under
section 102(b) that is attributable to the manufac-
ture of cigarettes and that will be provided to States
under this title; or
(2) an initial payment under section 102(a).
(b) MANUFACTURER.—A manufacturer described in
this subsection is a manufacturer that has—
(1) resolved tobacco-related civil actions with
more than 25 States before January 1, 1998,
through written settlement agreements; and
(2) provided to all other States by not later
than December 31, 1998, the opportunity to enter
into written settlement agreements that are substan-
tially similar to such agreements and that provide
such other States with the most favorable annual
payment terms in such agreements.
(c) LIMITATION.—Subsection (a)(1) shall apply only
to the extent that the cigarettes manufactured by the
manufacturer constitute less than 3 percent of all ciga-
rettes manufactured or imported in the United States in
the applicable calendar year.
Subtitle B—State Grants
SEC. 811. PUBLIC AWARENESS AND PREVENTION PRO-
GRAMS.
(a) FUNDS.—
(1) CHILD-ORIENTED PROGRAMS.—From funds
paid to the United States Treasury under section
102(b) in each year there shall be made available to
the 
Secretary, 
without 
fiscal 
year 
limitation,
$200,000,000 to make grants to States with ap-
proved plans to carry out child-oriented programs to
discourage the use of tobacco products.
(2) 
COMMUNITY-BASED
PROGRAMS.—From
funds paid to the United States Treasury under sec-
tion 102(b) in each year there shall be made avail-
able to the Secretary, without fiscal year limitation,
$400,000,000 to make grants to States with ap-
proved plans to carry out community-based pro-
grams to discourage the use of tobacco products.
(b) ELIGIBILITY.—
(1) APPLICATIONS.—To be eligible to receive a
grant under subsection (a), a State shall prepare
and submit to the Secretary an application at such
time, in such manner, and containing such informa-
tion as the Secretary may require.
(2) STATE PLANS.—To be approved by the Sec-
retary, an application under paragraph (1) shall in-
clude a State plan for carrying out the grant applied
for. A State plan shall include—
(A) a description of the types of programs
the State will fund with its grant;
(B) the manner in which the State will en-
sure that the plan includes programs directed
toward low-income communities and programs
directed toward individuals who are members of
racial and ethnic minority groups;
(C) the manner in which the State will en-
sure that programs funded by a grant will be
age appropriate, culturally appropriate, and lin-
guistically appropriate for the target popu-
lation;
(D) the manner in which the State will
monitor the effectiveness of programs under its
grant; and
(E) the manner in which the State will en-
sure that local entities and public health offi-
cials are involved in the planning and imple-
mentation of programs under its grant.
(3) ADDITIONAL REQUIREMENTS.—To be eligi-
ble to receive a grant under subsection (a) a State
shall also—
(A) annually report to the Secretary on the
effectiveness of the programs implemented by
the State under its grant;
(B) provide for independent periodic peer
review to evaluate and assess the effectiveness
of the programs under its grant; and
(C) submit to the Secretary the results of
reviews under subparagraph (B) and annual re-
ports containing such information as the Sec-
retary may require in order to enable the Sec-
retary to monitor the activities of the State
under its grant and its plan submitted with its
application.
(c) NONCOMPLIANCE BY STATE WITH RESPECT TO
EVALUATIONS AND REPORTS.—Beginning with the 3d
year for which a State has in effect an approved plan
under subsection (b)(2), the Secretary shall, before mak-
ing or renewing a grant based on such plan, make a deter-
mination as to whether the State has satisfactorily met
the requirements for data, evaluations, and other condi-
tions agreed to by the State in its plan. If, after providing
notice and opportunity for a hearing, the Secretary deter-
mines the State is not in compliance with such require-
ments, the Secretary may either withhold or reduce the
amount of grants under this section until the State is
deemed to come into compliance with such requirements.
(d) ADMINISTRATIVE EXPENSES.—Not more than 10
percent of a grant under subsection (a) for a year may
be expended by a State for administrative expenses for the
grant.
SEC. 812. REIMBURSEMENT OF STATES FOR MEDICAID EX-
PENSES.
(a) AMENDMENT.—Section 1903 of the Social Secu-
rity Act (42 U.S.C. 1396b) is amended—
(1) in subsection (a)(7), by striking the period
and inserting ‘‘; plus’’;
(2) in subsection (a), by adding after paragraph
(7) the following:
‘‘(8) an amount equal to 90 percent of the
sums expended during the quarter which are attrib-
utable to the costs of offering, arranging, and fur-
nishing (directly or on a contract basis) items or
services provided to individuals eligible for services
under this title of approved tobacco use cessation
programs.’’; and
(3) in subsection (b), by adding at the end the
following new paragraph:
‘‘(6) For purposes of subsection (a)(8), the term ‘ap-
proved tobacco use cessation programs’ means those pro-
grams which the Secretary finds either are consistent with
the most recent tobacco use cessation guidelines issued by
the Agency for Health Care Policy and Research or ap-
proved as safe and effective for tobacco use cessation by
the Secretary acting through the Food and Drug Adminis-
tration.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to expenditures for items and
services furnished under an approved tobacco use ces-
sation program beginning April 1, 1999.
TITLE IX—DEFINITIONS
SEC. 901. DEFINITIONS.
Except as otherwise provided, in this Act:
(1) MANUFACTURER.—The term ‘‘manufac-
turer’’ means any person who manufactures or im-
ports a tobacco product.
(2) PERSON.—The term ‘‘person’’ means an in-
dividual, partnership, corporation, parent corpora-
tion, or any other business or legal entity or succes-
sor in interest of any such person.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(4) STATE.—The term ‘‘State’’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, Guam, the Virgin Is-
lands, American Samoa, the Northern Mariana Is-
lands, and any other territory or possession of the
United States. Such term includes any political sub-
division of any State.
(5) TOBACCO
PRODUCT.—The term ‘‘tobacco
product’’ means any product made of or derived
from tobacco that is intended for human consump-
tion.
(6) UNIT.—The term ‘‘unit’’ means 20 ciga-
rettes in the case of cigarettes and a comparable
amount, as determined by the Secretary or the Sec-
retary of the Treasury, in the case of other tobacco
products.
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