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Q: SECTION 1. INCREASE IN CONTRIBUTION LIMITS AND AMOUNTS AT WHICH PHASE
OUT OF DEDUCTION BEGINS FOR INDIVIDUAL RETIREMENT ACCOUNT
CONTRIBUTIONS.

(a) Increase in Maximum Amount of Contribution to Individual
Retirement Accounts.--
(1) In general.--Subparagraph (A) of section 219(b)(1) of
the Internal Revenue Code of 1986 (relating to maximum amount
of deduction) is amended by striking ''$2,000'' and inserting
''the applicable amount''.
(2) Applicable amount.--Subsection (b) of section 219 of
such Code is amended by adding at the end the following new
paragraph:
''(5) Applicable amount.--
''(A) In general.--For purposes of paragraph (1),
the term 'applicable amount' means--
''(i) for any taxable year beginning in
1997, $2,500,
''(ii) for any taxable year beginning after
1997 and before 2006, the applicable amount
determined under this paragraph for the
preceding taxable year, increased by $500, and
''(iii) for any taxable year beginning
after 2005, $7,000.
''(B) Inflation adjustment.--In the case of a
taxable year beginning in a calendar year after 2006,
the $7,000 amount contained in subparagraph (A)(iii)
shall be increased by an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment under
section 1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting 'calendar year 2005' for 'calendar
year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $10, such amount shall be rounded
to the nearest multiple of $10.''
(b) Increase of Amounts at Which Phase-Out Of Deduction For IRA
Contributions Begins.--
(1) In general.--Clauses (i) and (ii) of section
219(g)(3)(B) of such Code (relating to limitation on deduction
for active participants in certain pension plans) are amended
to read as follows:
''(i) in the case of a taxpayer filing a
joint return--
''(I) for taxable years beginning
in 1997, $50,000,
''(II) for taxable years beginning
after 1997 and before 2003, the
applicable dollar amount determined
under this subclause for the preceding
taxable year, increased by $10,000, and
''(III) for taxable years beginning
after 2002, $110,000.
''(ii) in the case of any other taxpayer
(other than a married individual filing a
separate return)--
''(I) for taxable years beginning
in 1997, $30,000,
''(II) for taxable years beginning
after 1997 and before 2003, the
applicable dollar amount determined
under this subclause for the preceding
taxable year, increased by $5,000, and
''(III) for taxable years beginning
after 2002, $60,000, and''
(2) Inflation adjustment.--Paragraph (3) of section 219(g)
of such Code is amended by adding at the end the following new
subparagraph:
''(C) Inflation adjustment.--In the case of a
taxable year beginning in a calendar year after 2003,
the $110,000 amount contained in subparagraph
(B)(i)(III) and the $60,000 amount contained in
subparagraph (B)(ii)(III) shall each be increased by an
amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment under
section 1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting 'calendar year 2004' for 'calendar
year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $100, such amount shall be rounded
to the nearest multiple of $100.''
(c) Conforming Amendments.--
(1) Paragraph (1) of section 408(a) of such Code is amended
by striking ''$2,000'' and inserting ''the applicable amount
(as in effect under section 219(b) for such taxable year)''.
(2) Subparagraph (B) of section 408(b)(2) of such Code is
amended by striking ''$2,000'' and inserting ''the applicable
amount in effect under section 219(b) for the taxable year of
such individual''.
(3) Subsection (b) of section 408 of such Code is amended
in the last sentence by striking '$2,000'' and inserting ''the
applicable amount in effect under section 219(b) for such
taxable year''.
(4) Subparagraph (A) of section 408(d)(5) of such Code is
amended by striking ''dollar amount'' and inserting
''applicable amount''.
(5) Subsection (j) of section 408 of such Code is amended
by striking ''$2,000'' and inserting ''applicable''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1996.

SEC. 2. PENALTY-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS,
401(k) PLANS, ETC.

(a) Distributions Related to First Homes, Education, or Adoption.--
(1) In general.--Paragraph (2) of section 72(t) (relating
to exceptions to 10-percent additional tax on early
distributions from qualified retirement plans) is amended by
adding at the end the following new subparagraph:
''(E) Certain distributions from individual
retirement plans, 401(k) plans, etc.--Distributions to
an individual from an individual retirement plan, or
from amounts attributable to employer contributions
made pursuant to elective deferrals described in
subparagraph (A) or (C) of section 402(g)(3) or section
501(c)(18)(D)(iii), to the extent such distributions do
not exceed the sum of--
''(i) qualified first-time homebuyer
distributions (as defined in paragraph (7))
made during the taxable year,
''(ii) qualified education expenses (as
defined in paragraph (8)) of the taxpayer for
the taxable year, and
''(iii) qualified adoption expenses (as
defined in section 23(d), determined without
regard to section 23(d)(2)(B)) paid or incurred
by the taxpayer during the taxable year.''
(2) Definitions.--Section 72(t) is amended by adding at the
end the following new paragraphs:
''(7) Qualified first-time homebuyer distributions.--For
purposes of paragraph (2)(E)(i)--
''(A) In general.--The term 'qualified first-time
homebuyer distribution' means any payment or
distribution received by an individual to the extent
such payment or distribution is used by the individual
before the close of the 60th day after the day on which
such payment or distribution is received to pay
qualified acquisition costs with respect to a principal
residence of a first-time homebuyer who is such
individual, the spouse of such individual, or any
child, grandchild, or ancestor of such individual or
the individual's spouse.
''(B) Qualified acquisition costs.--For purposes of
this paragraph, the term 'qualified acquisition costs'
means the costs of acquiring, constructing, or
reconstructing a residence. Such term includes any
usual or reasonable settlement, financing, or other
closing costs.
''(C) First-time homebuyer; other definitions.--For
purposes of this paragraph--
''(i) First-time homebuyer.--The term
'first-time homebuyer' means any individual
if--
''(I) such individual (and if
married, such individual's spouse) had
no present ownership interest in a
principal residence during the 2-year
period ending on the date of
acquisition of the principal residence
to which this paragraph applies, and
''(II) subsection (h) or (k) of
section 1034 did not suspend the
running of any period of time specified
in section 1034 with respect to such
individual on the day before the date
the distribution is applied pursuant to
subparagraph (A).
''(ii) Principal residence.--The term
'principal residence' has the same meaning as
when used in section 1034.
''(iii) Date of acquisition.--The term
'date of acquisition' means the date--
''(I) on which a binding contract
to acquire the principal residence to
which subparagraph (A) applies is
entered into, or
''(II) on which construction or
reconstruction of such a principal
residence is commenced.
''(D) Special rule where delay in acquisition.--If
any distribution from any individual retirement plan
fails to meet the requirements of subparagraph (A)
solely by reason of a delay or cancellation of the
purchase or construction of the residence, the amount
of the distribution may be contributed to an individual
retirement plan as provided in section 408(d)(3)(A)(i)
(determined by substituting '120 days' for '60 days' in
such section), except that--
''(i) section 408(d)(3)(B) shall not be
applied to such contribution, and
''(ii) such amount shall not be taken into
account in determining whether section
408(d)(3)(A)(i) applies to any other amount.
''(8) Qualified education expenses.--For purposes of
paragraph (2)(E)(ii)--
''(A) In general.--The term 'qualified higher
education expenses' means tuition, fees, books,
supplies, and equipment required for the education of--
''(i) the taxpayer,
''(ii) the taxpayer's spouse, or
''(iii) any child (as defined in section
151(c)(3)), grandchild, or ancestor of the
taxpayer or the taxpayer's spouse,
whether or not such education takes place at an
eligible educational institution (as defined in section
135(c)(3)).
''(B) Coordination with savings bond provisions.--
The amount of qualified education expenses for any
taxable year shall be reduced by any amount excludable
from gross income under section 135.''
(3) Conforming amendment.--Subparagraph (B) of section
72(t)(2) is amended by striking ''or (D)'' and inserting '',
(D), or (E)''.
(b) Penalty-Free Distributions for Certain Unemployed Individuals
Not Limited to Health Insurance Costs and Allowed From 401(k) Plans,
Etc.--Subparagraph (D) of section 72(t)(2) is amended--
(1) in clause (i), by inserting '', or from amounts
attributable to employer contributions made pursuant to
elective deferrals described in subparagraph (A) or (C) of
section 402(g)(3) or section 501(c)(18)(D)(iii),'' after
''individual retirement plan'',
(2) in clause (i), by inserting ''and'' at the end of
subclause (I), by striking '', and'' at the end of subclause
(II) and inserting a period, and by striking subclause (III),
and
(3) by striking ''for health insurance premiums'' in the
heading.
(c) Unlimited Penalty-Free Distributions for Medical Care and
Expanded Definition of Dependents for Purposes of Such Distributions.--
Subparagraph (B) of section 72(t)(2) is amended by striking ''medical
care'' and all that follows and inserting ''medical care, determined--
''(i) without regard to whether the
employee itemizes deductions for such taxable
year, and
''(ii) in the case of a distribution from
an individual retirement plan, or from amounts
attributable to employer contributions made
pursuant to elective deferrals described in
subparagraph (A) or (C) of section 402(g)(3) or
section 501(c)(18)(D)(iii)--
''(I) without regard to whether or
not such expenses exceed 7.5 percent of
adjusted gross income, and
''(II) by treating an individual's
dependents as including all children
and grandchildren of the individual (or
of such individual's spouse), and all
ancestors of the individual (or of such
individual's spouse).''
(d) Effective Date.--The amendments made by this section shall
apply to payments and distributions in taxable years beginning after
December 31, 1996.

A: Amends the Internal Revenue Code to increase the: (1) maximum deduction for individual retirement account contributions; and (2) income amount at which phase-out of that deduction begins.
Exempts from the early distribution penalty: (1) distributions from certain types of retirement plans for first-time home buyer, education, or adoption expenses; and (2) for unemployed individuals (currently, for unemployed individuals for health insurance premiums). Modifies requirements regarding penalties for medical care early distributions.
****
Q: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Tobacco Smuggling
Eradication Act of 2002''.

TITLE I--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

SEC. 101. AMENDMENT OF 1986 CODE.

Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.

SEC. 102. IMPROVED MARKING AND LABELING.

(a) In General.--Subsection (b) of section 5723 (relating to marks,
labels, and notices) is amended--
(1) by striking '', if any,'' and
(2) by adding at the end the following: ''Such marks,
labels, and notices shall include marks and notices relating to
the following:
''(1) Identification.--The Secretary shall promulgate
regulations that require each manufacturer or importer of
tobacco products to legibly print a unique serial number on all
packages of tobacco products manufactured or imported for sale
or distribution. Such serial number shall be designed to enable
the Secretary to identify the manufacturer or importer of the
product, and the location and date of manufacture or
importation. The Secretary shall determine the size and
location of the serial number.
''(2) Marking requirements for exports.--Each package of a
tobacco product that is exported shall be marked for export
from the United States. The Secretary shall promulgate
regulations to determine the size and location of the mark and
under what circumstances a waiver of this paragraph shall be
granted.''.
(b) Sales on Indian Reservations.--Section 5723 is amended by
adding at the end the following new subsections:
''(f) Sales on Indian Reservations.--The Secretary, in consultation
with the Secretary of the Interior, shall promulgate regulations that
require that each package of a tobacco product that is sold on an
Indian reservation (as defined in section 403(9) of the Indian Child
Protection and Family Violence Prevention Act (25 U.S.C. 3202(9)) be
labeled as such. Such regulations shall include requirements for the
size and location of the label.
''(g) Definition of Package.--For purposes of this section, the
term 'package' means the innermost sealed container irrespective of the
material from which such container is made, in which a tobacco product
is placed by the manufacturer and in which such tobacco product is
offered for sale to a member of the general public.''.

SEC. 103. WHOLESALERS REQUIRED TO HAVE PERMIT.

Section 5712 (relating to application for permit) is amended by
inserting '', wholesaler,'' after ''manufacturer''.

SEC. 104. CONDITIONS OF PERMIT.

Subsection (a) of section 5713 (relating to issuance of permit) is
amended to read as follows:
''(a) Issuance.--
''(1) In general.--A person shall not engage in business as
a manufacturer, wholesaler, or importer of tobacco products or
as an export warehouse proprietor without a permit to engage in
such business. Such permit shall be issued in such form and in
such manner as the Secretary shall by regulation prescribe, to
every person properly qualified under sections 5711 and 5712. A
new permit may be required at such other time as the Secretary
shall by regulation prescribe.
''(2) Conditions.--The issuance of a permit under this
section shall be conditioned upon the compliance with the
requirements of this chapter and the Contraband Cigarette
Trafficking Act (18 U.S.C. chapter 114), and any regulations
issued pursuant to such statutes.''.

SEC. 105. RECORDS TO BE MAINTAINED.

Section 5741 (relating to records to be maintained) is amended--
(1) by inserting ''(a) In General.--'' before ''Every
manufacturer'',
(2) by inserting ''every wholesaler,'' after ''every
importer,'',
(3) by striking ''such records'' and inserting ''records
concerning the chain of custody of the tobacco products and
such other records'', and
(4) by adding at the end the following new subsection:
''(b) Retailers.--Retailers shall maintain records of receipt of
tobacco products, and such records shall be available to the Secretary
for inspection and audit. An ordinary commercial record or invoice
shall satisfy the requirements of this subsection if such record shows
the date of receipt, from whom tobacco products were received, and the
quantity of tobacco products received.''.

SEC. 106. REPORTS.

Section 5722 (relating to reports) is amended--
(1) by inserting ''(a) In General.--'' before ''Every
manufacturer'', and
(2) by adding at the end the following new subsection:
''(b) Reports By Export Warehouse Proprietors.--
''(1) In general.--Prior to exportation of tobacco products
from the United States, the export warehouse proprietor shall
submit a report (in such manner and form as the Secretary may
by regulation prescribe) to enable the Secretary to identify
the shipment and assure that it reaches its intended
destination.
''(2) Agreements with foreign governments.--Notwithstanding
section 6103 of this title, the Secretary is authorized to
enter into agreements with foreign governments to exchange or
share information contained in reports received from export
warehouse proprietors of tobacco products if--
''(A) the Secretary believes that such agreement
will assist in--
''(i) ensuring compliance with the
provisions of this chapter or regulations
promulgated thereunder, or
''(ii) preventing or detecting violations
of the provisions of this chapter or
regulations promulgated thereunder, and
''(B) the Secretary obtains assurances from such
government that the information will be held in
confidence and used only for the purposes specified in
clauses (i) and (ii) of subparagraph (A).
No information may be exchanged or shared with any government
that has violated such assurances.''.

SEC. 107. FRAUDULENT OFFENSES.

(a) In General.--Subsection (a) of section 5762 (relating to
fraudulent offenses) is amended by striking paragraph (1) and
redesignating paragraphs (2) through (6) as paragraphs (1) through (5),
respectively.
(b) Offenses Relating to Distribution of Tobacco Products.--Section
5762 is amended--
(1) by redesignating subsection (b) as subsection (c),
(2) in subsection (c) (as so redesignated), by inserting
''or (b)'' after ''(a)'', and
(3) by inserting after subsection (a) the following new
subsection:
''(b) Offenses Relating to Distribution of Tobacco Products.--It
shall be unlawful--
''(1) for any person to engage in the business as a
manufacturer or importer of tobacco products or cigarette
papers and tubes, or to engage in the business as a wholesaler
or an export warehouse proprietor, without filing the bond and
obtaining the permit where required by this chapter or
regulations thereunder;
''(2) for a manufacturer, importer, or wholesaler permitted
under this chapter intentionally to ship, transport, deliver,
or receive any tobacco products from or to any person other
than a person permitted under this chapter or a retailer,
except a permitted importer may receive foreign tobacco
products from a foreign manufacturer or a foreign distributor
that have not previously entered the United States;
''(3) for any person (other than the original manufacturer
of such tobacco products or an export warehouse proprietor
authorized to receive any tobacco products that have previously
been exported and returned to the United States) to receive any
tobacco products that have previously been exported and
returned to the United States;
''(4) for any export warehouse proprietor intentionally to
ship, transport, sell, or deliver for sale any tobacco products
to any person other than the original manufacturer of such
tobacco products, another export warehouse proprietor, or a
foreign purchaser;
''(5) for any person (other than a manufacturer or an
export warehouse proprietor permitted under this chapter)
intentionally to ship, transport, receive, or possess, for
purposes of resale, any tobacco product in packages marked
pursuant to regulations issued under section 5723, other than
for direct return to a manufacturer for repacking or for re-
exportation or to an export warehouse proprietor for re-
exportation;
''(6) for any manufacturer, importer, export warehouse
proprietor, or wholesaler permitted under this chapter to make
intentionally any false entry in, to fail willfully to make
appropriate entry in, or to fail willfully to maintain properly
any record or report that such person is required to keep as
required by this chapter or the regulations promulgated
thereunder; and
''(7) for any person to alter, mutilate, destroy,
obliterate, or remove any mark or label required under this
chapter upon a tobacco product held for sale, except pursuant
to regulations of the Secretary authorizing relabeling for
purposes of compliance with the requirements of this section or
of State law.
Any person violating any of the provisions of this subsection shall,
upon conviction, be fined as provided in section 3571 of title 18,
United States Code, imprisoned for not more than 5 years, or both.''.
(c) Intentionally Defined.--Section 5762 is amended by adding at
the end the following:
''(d) Definition of Intentionally.--For purposes of this section
and section 5761, the term 'intentionally' means doing an act, or
omitting to do an act, deliberately, and not due to accident,
inadvertence, or mistake, regardless of whether the person knew that
the act or omission constituted an offense.''.

SEC. 108. CIVIL PENALTIES.

Subsection (a) of section 5761 (relating to civil penalties) is
amended--
(1) by striking ''willfully'' and inserting
''intentionally'', and
(2) by striking ''$1,000'' and inserting ''$10,000''.

SEC. 109. DEFINITIONS.

(a) Export Warehouse Proprietor.--Subsection (i) of section 5702
(relating to definition of export warehouse proprietor) is amended by
inserting before the period the following: ''or any person engaged in
the business of exporting tobacco products from the United States for
purposes of sale or distribution. Any duty free store that sells,
offers for sale, or otherwise distributes to any person in any single
transaction more than 30 packages of cigarettes, or its equivalent for
other tobacco products as the Secretary shall by regulation prescribe,
shall be deemed an export warehouse proprietor under this chapter''.
(b) Retailer; Wholesaler.--Section 5702 is amended by adding at the
end the following:
''(p) Retailer.--The term 'retailer' means any dealer who sells, or
offers for sale, any tobacco product at retail. The term 'retailer'
includes any duty-free store that sells, offers for sale, or otherwise
distributes at retail in any single transaction 30 or less packages, or
its equivalent for other tobacco products.
''(q) Wholesaler.--The term 'wholesaler' means any person engaged
in the business of purchasing tobacco products for resale at wholesale,
or any person acting as an agent or broker for any person engaged in
the business of purchasing tobacco products for resale at wholesale.''.

SEC. 110. EFFECTIVE DATE.

The amendments made by this title shall take effect on January 1,
2003.

TITLE II--AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT

SEC. 201. AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT.

(a) Definitions.--Section 2341 of title 18, United States Code, is
amended--
(1) in paragraph (2)--
(A) by striking ''60,000'' and inserting
''30,000'', and
(B) by inserting ''or importer'' after ''as a
manufacturer'';
(2) in paragraph (4), by striking ''and'' at the end;
(3) in paragraph (5), by striking the period and inserting
a semicolon; and
(4) by adding at the end the following:
''(6) the term 'tobacco product' means cigars, cigarettes,
smokeless tobacco, and pipe tobacco (as such terms are defined
in section 5701 of the Internal Revenue Code of 1986); and
''(7) the term 'contraband tobacco product' means a
quantity of tobacco product that is equivalent to or more than
30,000 cigarettes as determined by regulation, which bear no
evidence of the payment of applicable State tobacco taxes in
the State where such tobacco products are found, if such State
requires a stamp, impression, or other indication to be placed
on packages or other containers of product to evidence payment
of tobacco taxes.''
(b) Unlawful Acts.--Section 2342 of title 18, United States Code,
is amended--
(1) in subsection (a), by inserting ''or contraband tobacco
products'' before the period;
(2) by amending subsection (b) to read as follows:
''(b)(1) It shall be unlawful for any person--
''(A) knowingly to make any false statement or
representation with respect to the information required by this
chapter to be kept in the records or reports of any person who
ships, sells, or distributes--
''(i) any quantity of cigarettes in excess of
30,000 in a single transaction or in a series of
related transactions, or
''(ii) tobacco products in such equivalent
quantities as shall be determined by regulation, or
''(B) knowingly to fail to maintain records or reports,
alter or obliterate required markings, or interfere with any
inspection, required under this chapter, with respect to such
quantity of cigarettes or other tobacco products.''; and
(3) by adding at the end the following:
''(c) It shall be unlawful for any person knowingly to transport
tobacco products under a false bill of lading or without any bill of
lading.''.
(c) Recordkeeping.--Section 2343 of title 18, United States Code,
is amended--
(1) in subsection (a), by striking ''60,000 in a single
transaction'' and inserting ''30,000 in a single transaction or
in a series of related transactions, or, in the case of other
tobacco products an equivalent quantity as determined by
regulation,'';
(2) by amending the last sentence of subsection (a) to read
as follows: ''Except as provided in subsection (c) of this
section, nothing contained herein shall authorize the Secretary
to require reporting under this section.'';
(3) in subsection (b), by striking ''60,000 in a single
transaction'' and inserting ''30,000 in a single transaction or
in a series of related transactions, or, in the case of other
tobacco products an equivalent quantity as determined by
regulation,''; and
(4) by adding at the end the following:
''(c)(1) Any person who ships, sells, or distributes tobacco
products for resale in interstate commerce, whereby such tobacco
products are shipped into a State taxing the sale or use of such
tobacco products or who advertises or offers tobacco products for such
sale or transfer and shipment shall--
''(A) first file with the tobacco tax administrator of the
State into which such shipment is made or in which such
advertisement or offer is disseminated, a statement setting for
the person's name, and trade name (if any), and the address of
the person's principal place of business and of any other place
of business; and
''(B) not later than the 10th of each calendar month, file
with the tobacco tax administrator of the State into which such
shipment is made a memorandum or a copy of the invoice covering
each and every shipment of tobacco products made during the
previous calendar month into such State; the memorandum or
invoice in each case to include the name and address of the
person to whom the shipment was made, the brand, and the
quantity thereof.
''(2) The fact that any person ships or delivers for shipment any
tobacco products shall, if such shipment is into a State in which such
person has filed a statement with the tobacco tax administrator under
paragraph (1)(A) of this subsection, be presumptive evidence that such
tobacco products were sold, shipped, or distributed for resale by such
person.
''(3) For purposes of this subsection--
''(A) the term 'use' in addition to its ordinary meaning,
means consumption, storage, handling, or disposal of tobacco
products; and
''(B) the term 'tobacco tax administrator' means the State
official authorized to administer tobacco tax laws of the
State.''.
(d) Penalties.--Section 2344 of title 18, United States Code, is
amended--
(1) in subsection (b), by inserting ''or (c)'' after
''section 2342(b)'' and by inserting ''or (c)'' after section
2343(a)''; and
(2) by striking subsection (c) and inserting the following
new subsection:
''(c) Any contraband cigarettes or contraband tobacco products
involved in any violation of the provisions of this chapter shall be
subject to seizure and forfeiture, and all provisions of section
9703(o) of title 31, United States Code, shall, so far as applicable,
extend to seizures and forfeitures under the provisions of this
chapter.''
(e) Repeal.--The Act of October 19, 1949, entitled ''An Act to
assist States in collecting sales and use taxes on cigarettes'', 63
Stat. 884 (chapter 10A of title 15, U.S.C.), is hereby repealed.

A: Tobacco Smuggling Eradication Act of 2002 - Amends chapter 52 (Tobacco Products and Cigarette Papers and Tubes) of the Internal Revenue Code to require all packages of tobacco products to carry a unique legibly printed serial number by which the Secretary of the Treasury can identify the manufacturer or importer and the location and date of manufacture or importation. Requires tobacco products sold on Indian reservations to be labeled as such.Requires a tobacco wholesaler to have a permit and to maintain certain records.Requires export warehouse proprietors to file certain reports with the Secretary. Authorizes the Secretary to enter into certain tobacco related information agreements with foreign countries.Establishes new offenses relating to the distribution of tobacco.Raises the $1,000 civil penalty under chapter 52 to $10,000.Amends the Contraband Cigarette Trafficking Act to: (1) expand the applicability of such Act from cigarettes only to "tobacco product" (cigars, cigarettes, smokeless tobacco, and pipe tobacco); (2) define "contraband tobacco product" as a quantity of tobacco product that is equivalent to or more than 30,000 cigarettes (currently, 60,000) which bear no evidence of the payment of applicable State tobacco taxes; (3) establish new unlawful acts; and (4) require additional recordkeeping.Repeals Federal law provisions concerning reports required to State tobacco tax administrators by individuals engaged in interstate cigarette commerce.
****
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Assisting Acquisition of Russian
Material Act (AARM Act)''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--The Congress finds the following:
(1) The maintenance of the Russian HEU Agreement and the
timely and satisfactory acquisition of Russian highly enriched
uranium (referred to as ''HEU'') under that Agreement by the
Department of Energy and the United States Executive Agent is
essential to the national security and foreign policy interests
of the United States.
(2) Implementation of the Russian HEU Agreement will result
in the import of a total of 500 metric tons of weapons-grade
enriched uranium into the United States, and commencing in
1999, the Russian HEU under the agreement will be imported at a
rate of 30 metric tons per year. When converted into low
enriched uranium (referred to as ''LEU'') for use in nuclear
reactors to generate electricity, it will equal a substantial
portion of United States utility demand for nuclear fuel.
(3) The United States Enrichment Corporation is required at
the time of privatization to meet the statutory requirements
set out in subsection (b)(2) of this section and, except for
subparagraphs (A) and (H), following privatization. The
execution of the Russian HEU Agreement will significantly
increase the supply of LEU fuel available in the United States
marketplace; and, as a result and in order to balance supply
with demand, the privatized United States Enrichment
Corporation may have to take actions contrary to or
inconsistent with maintaining long-term viability, continued
operation of the gaseous diffusion plants, and a reliable and
economical domestic source of uranium mining, enrichment, and
conversion services, and other statutory requirements referred
to in subsection (b)(2).
(4) The principal responsibility for ensuring the faithful
implementation of the United States obligations under the
Russian HEU Agreement, which is a government-to-government
agreement, lies with the Department of Energy; and the
execution of those obligations is an inherently governmental
function under the foreign policy of the United States.
(5) Therefore, the Department of Energy shall, subject to
appropriations, acquire directly or from the United States
Executive Agent such amounts of the Russian HEU converted to
LEU under the Russian HEU Agreement, and withhold such amounts
from resale into the private market for such period of time, as
may be necessary to fully achieve the national security goals
of the United States under the Russian HEU Agreement and to
allow a privatized United States Enrichment Corporation to meet
the statutory requirements of the privatization.
(b) Purposes.--The purposes of this Act are--
(1) To achieve the national security objectives of the
Russian HEU Agreement.
(2) To achieve the requirements for privatization of the
United States Enrichment Corporation set out in the Energy
Policy Act of 1992 and the United States Enrichment Corporation
Privatization Act, as follows:
(A) Assure that privatization will result in a
return to the United States at least equal to the net
present value of the Corporation.
(B) Assure that privatization will not result in
the Corporation being owned, controlled, or dominated
by an alien, a foreign corporation, or a foreign
government.
(C) Assure that the privatization will not be
inimical to the health and safety of the public or the
common defense and security.
(D) Provide reasonable assurance that adequate
enrichment capacity will remain available to meet the
demands of the domestic electric utility industry.
(E) Assure that privatization will provide for the
long-term viability of the Corporation.
(F) Assure that privatization will provide for the
continuation by the Corporation of the operation of the
Department of Energy's gaseous diffusion plants.
(G) Assure that privatization will provide for the
protection of the public interest in maintaining a
reliable and economical domestic source of uranium
mining, enrichment, and conversion services.
(H) To the extent not inconsistent with
requirements of subparagraphs (E), (F), and (G), assure
that privatization will secure the maximum proceeds to
the United States.
(3) To monitor and determine the effect the LEU delivered
under the Russian HEU Agreement is having on the domestic
uranium mining, conversion, and enrichment industries and the
operation of the gaseous diffusion plants, and to prevent or
mitigate any material adverse impact on such industries or any
loss of employment at the gaseous diffusion plants as a result
of the Russian HEU Agreement.

SEC. 4. STANDBY AUTHORIZATION.

Section 3112(b) of the United States Enrichment Corporation
Privatization Act (42 U.S.C. 2297h-10) is amended by adding at the end
the following:
''(11) The Secretary is authorized to purchase and hold any amount
of any contract obligation of the United States Executive Agent to
acquire Russian HEU converted to LEU under the Russian HEU Agreement
during any year in which the Russian HEU Agreement is in force, and
resell such material, upon the following terms and conditions:
''(A) At the end of any month, the United States Enrichment
Corporation shall certify to the Secretary when enrichment of
uranium at the gaseous diffusion plants, measured in SWU, for
the previous 12 months, is determined to be 25 percent below
the average annual enrichment in SWU for the years 1992 through
1997.
''(B) In its certification under subparagraph (A), the
United States Enrichment Corporation shall indicate the effects
that the purchase and resale of the converted Russian HEU by
the United States Executive Agent under the Russian HEU
Agreement are having on its long-term viability, including its
operations, costs, sales and profitability, and in particular
any reduction in the levels of enrichment services and
employment at the gaseous diffusion plants or threat thereof.
The United States Enrichment Corporation shall also certify
what actions it has taken or may be required to take to
mitigate such effects of the purchases and resales of the
converted Russian HEU under the Russian HEU Agreement when
combined with other effects and causes in the marketplace.
''(C) Within 30 days of the certification by the United
States Enrichment Corporation under subparagraphs (A) and (B),
the Secretary shall review that certification and make a report
to the President which shall include any recommendation for the
Secretary to purchase directly, or from the United States
Executive Agent, and hold a sufficient amount of converted
Russian HEU under the Russian HEU Agreement to assure that the
national security objectives of the Russian HEU Agreement are
met and that the United States Enrichment Corporation is able
to meet its obligations under this Act to provide for the long-
term viability of the Corporation, the continuation by the
Corporation of the operation of the Department of Energy's
gaseous diffusion plants, and for the protection of the public
interest in maintaining a reliable and economical domestic
source of uranium mining, conversion, and enrichment services.
The Secretary shall deliver a copy of the report to the Senate
Committee on Energy and Natural Resources and the House of
Representatives Committee on Commerce and shall publish it in
the Federal Register. The Secretary shall not publicly disclose
essential proprietary information of the United States
Enrichment Corporation or the United States Executive Agent, as
determined by regulations promulgated by the Secretary,
consistent with providing the greatest amount of information to
the public, particularly in the communities directly affected,
and to all parties in interest in the enrichment of uranium at
the gaseous diffusion plants and shareholders or stakeholders
in the United States Enrichment Corporation and the United
States Executive Agent.
''(D) The President shall thereafter direct the Secretary
to acquire such amounts of converted Russian HEU under the
Russian HEU Agreement as the President determines necessary for
these purposes from funds available for such purposes. The
President shall also request appropriations from the Congress
for current and future acquisitions of such amount of such
converted Russian HEU as the President determines necessary for
these purposes. Within 10 days of receipt of the report by the
Secretary, the President shall request an investigation under
section 332 of the Tariff Act of 1930 (19 U.S.C. 1332) of the
impact of the Russian HEU Agreement on the operations and
employment at the gaseous diffusion plants and the uranium mining,
enrichment, and conversion industries in the United States. Such
investigation shall be completed within 3 months of such request and
the Commission shall report the results to the President and the
Congress.
''(E) As directed by the President, the Secretary shall
acquire such amounts of converted Russian HEU under the Russian
HEU Agreement in such manner and at such prices as authorized
under the Russian HEU Agreement and shall withhold such amounts
from resale into the private markets of the United States or
elsewhere until such time as it is determined, pursuant to
regulations promulgated by the Secretary, that the United
States Enrichment Corporation is producing enrichment services
measured in SWU at the gaseous diffusion plants for a
consecutive 12-month period that equals or exceeds 110 percent
of the average annual enrichment in SWU for the period 1992
through 1997.
''(F) Upon the determination referred to in subparagraph
(E), the Secretary may then, pursuant to regulations
promulgated by the Secretary, auction for resale an amount of
converted Russian HEU acquired under this Act which is not more
than the amount in excess of 100 percent of the average annual
enrichment in SWU for the period 1992 through 1997. Such
amounts of converted Russian HEU shall not be sold in any
manner that would have a material adverse impact on the
domestic uranium mining, conversion, or enrichment industry and
shall not be sold directly to end-users in direct competition
with the United States Enrichment Corporation. Such amounts of
converted Russian HEU shall not be sold at prices less than
current market prices for comparable sales, but in no event may
such sale prices by the Secretary be less than the amount paid
for any such lot or lots, plus the expenses of holding and sale
by the Secretary. Purchasers at such auction may not sell to
end-users at any price that is less than the price, including
expenses of the Secretary, paid to the Secretary at such
auction. The term 'material adverse impact', as used in this
Act, shall have the same meaning as 'material injury' under
section 771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7))
and the Secretary shall consider the impacts and relevant
factors affecting the domestic industry as enumerated in
subparagraphs (B) and (C) of such section.
''(G) The regulations required to be promulgated by the
Secretary under subparagraphs (E) and (F) shall be subject to
the administrative procedures required by chapter 5 of title 5,
United States Code, shall be proposed within 90 days of the
date of the enactment of the Assisting Acquisition of Russian
Material Act, allow not less than a 90-day comment period, and
shall become final no less than one year from the date of the
enactment of such Act. Such regulations shall--
''(i) establish the procedures for the
determination of maximum allowable amount of converted
Russian HEU eligible for sale under subparagraph (F);
''(ii) establish the criteria for determining the
current market price at the time of sale, and the
minimum price which is the sum of the Secretary's
acquisition, holding, and sales costs of each lot
acquired, except that the Secretary may provide for the
separate payment of the costs of sale by successful
bidders by a percentage commission of the sale price or
otherwise;
''(iii) provide for the qualifications of buyers to
assure they are authorized to handle the nuclear
materials and are not end-users;
''(iv) provide for not less than 45 days notice of
a sale, which notice shall set out the maximum
allowable amounts of converted Russian HEU eligible for
sale and the minimum price calculated for each lot
offered for sale and the basis for such determinations;
''(v) shall allow for comment on such notice, the
purpose of which is to avoid any material adverse
impact on the domestic uranium mining, conversion, or
enrichment industries from such sale;
''(vi) provide for a determination that less than
the maximum allowable amount of material may be offered
for sale in order to avoid any material adverse impact
and that a sale may be made in installments to avoid
such impact; and
''(vii) provide procedures for determining that the
resales by buyers from the Secretary were made to
eligible end-users at prices in accord with
subparagraph (F) and the requirements of this Act.
''(H) Any action alleging a violation of any provision of
this Act may be brought in any district court of the United
States having jurisdiction over the parties (except in those
instances where another law specifically requires a different
venue) without regard to the amount in controversy or the
citizenship of the parties.''.

A:
Assisting Acquisition of Russian Material Act (AARM Act) - Amends the United States Enrichment Corporation Privatization Act regarding uranium transfers and sales to authorize the Secretary of Energy to: (1) purchase and hold any amount of any contract obligation of the United States Executive Agent to acquire Russian highly enriched uranium (HEU) converted to low-enriched uranium under the Russian HEU Agreement; and (2) resell such material according to prescribed guidelines. Confers jurisdiction upon the Federal district courts for violations of such Act without regard to the amount in controversy or the citizenship of the parties.
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