[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3868 Introduced in House (IH)]







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. Kennedy 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. Borski, 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 subsequently 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 Representatives 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 TOBACCO 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 tobacco prevention 
initiatives) and VIII (relating to payments 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 assess 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 assessment 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 tobacco 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 district court of the United States.
    (b) Regulations.--
            (1) Promulgation.--The Secretary may promulgate 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 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 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)''.
    (b) Devices.--Section 201(h) (21 U.S.C. 321(h)) is amended by 
adding at the end the following: ``Such term includes a tobacco 
product.''.
    (c) Other Definitions.--Section 201 (21 U.S.C. 321) is amended by 
adding at the end the following:
    ``(kk) The term `tobacco product' means any product made or derived 
from tobacco that is intended for human consumption.''.

SEC. 203. AMENDMENTS TO CHAPTER V.

    (a) Misbranding.--Section 502 (21 U.S.C. 360) is amended by adding 
at the end the following:
    ``(u) In the case of a tobacco product, if it does not comply with 
a requirement under subchapter F.''.
    (b) Clarification of Authority.--Section 520(e) (21 U.S.C. 360j(e)) 
is amended by adding at the end the following:
    ``(3) In the case of tobacco products, the restrictions on sale and 
distribution authorized by paragraph (1) shall include restrictions on 
advertising and promotion of tobacco products.''.
    (c) Preemption.--Section 521(a) (21 U.S.C. 360k(a)) is amended--
            (1) by striking ``Except as provided in subsection (b)'' 
        and inserting ``Except in the case of tobacco 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 regulations 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 following:

        ``Subchapter F--Special Provisions for Tobacco Products

``SEC. 565. SPECIAL STANDARD FOR TOBACCO PRODUCTS.

    ``In the case of tobacco products, an action that provides 
appropriate protection of public health shall be deemed to provide a 
reasonable assurance of safety and effectiveness.

``SEC. 566. IMPLEMENTATION OF THE PROPOSED RESOLUTION.

    ``(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 restrictions on marketing, 
advertising, and access described in Title IA and Title IC of the 
Proposed Resolution entered into by the tobacco manufacturers and the 
State attorneys general on June 20, 1997, except that the Secretary 
shall not include an additional restriction on marketing 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 enactment of this subchapter, the 
        Secretary shall promulgate 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 advertise 
        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 Proposed 
        Resolution entered into by the tobacco manufacturers 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 within the review period 
        prescribed under the regulations under paragraph (1), such 
        failure shall not be considered 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 Secretary 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 provisions 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 receive a grant under 
subtitle B of title VIII of the Bipartisan NO Tobacco for Kids Act of 
1998 unless the State has put into law a State tobacco control program 
that conforms to the model State program established by the Secretary 
under subsection (b).
    ``(b) Model State Program.--
            ``(1) General rule.--Within one year of the date of the 
        enactment of this subchapter, the Secretary shall establish a 
        model State tobacco control program.
            ``(2) Program content.--The model State tobacco control 
        program established under paragraph (1) shall--
                    ``(A) require persons who sell tobacco products to 
                individuals for personal consumption 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 purchasing 
                tobacco products for resale or distribution to 
                individuals under the age of 18;
                    ``(D) include minimum requirements for the conduct 
                and frequency of compliance inspections of licensed 
                retailers;
                    ``(E) include State performance objectives, 
                including objectives for reducing the level of 
                violations observed during compliance inspections;
                    ``(F) include provisions for appropriate penalties 
                for violations of the program requirements, including 
                provisions for license suspension 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 performance 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 implement a State tobacco 
        control program which conforms 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 tobacco 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 products, 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 protect 
public health.''.

SEC. 207. REPEAL.

    The Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331 
et seq.) and the Comprehensive Smokeless Tobacco Health Education Act 
of 1986 (15 U.S.C. 4401 et seq.) are repealed on the date the 
regulations described in section 566(b) of the Federal Food, Drug, and 
Cosmetic Act take effect.

     TITLE III--PERFORMANCE OBJECTIVES 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 percentage of children who use a tobacco 
product of the manufacturer.

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 Manufacturers.--Beginning with 
the third annual performance survey, a new manufacturer shall have as 
its performance 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 tobacco use level 
        determined in the first annual performance survey.
            (2) De minimis level.--The de minimis level is 0.5 percent 
        of children.

SEC. 303. ADDITIONAL MEASURES TO REDUCE CHILD TOBACCO 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 
applicable performance objective under section 302. The Secretary shall 
publish in the Federal Register such determination and any additional 
measures required under this section.
    (b) Failure To Achieve.--If the Secretary determines under 
subsection (a) that a manufacturer has failed to achieve the applicable 
performance objective for an annual performance survey, the additional 
measures specified 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 carton.
    (f) Fourth and Successive Failures.--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 fourth or more 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 carton.
            (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 determines 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 tobacco 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 
        manufacturer for export.
            (2) Non-monetary measures.--The Secretary shall by 
        regulation prescribe an effective date that is as expeditious 
        as practicable for the non-monetary additional measures 
        described in subsections (e) and (f). Such measures shall 
        remain in effect until the Secretary determines under 
        subsection (a) that the manufacturer has achieved the 
        applicable performance objective for an annual performance 
        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 Consumer Price Index for all urban 
        consumers (all items, U.S. city average) from 1998 to the year 
        before 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 applicable performance 
        objective and the percentage reduction in its child tobacco use 
        level achieved by the manufacturer.
            (2) Manufacturer with child tobacco use level above 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 above its baseline level, 
        the number of percentage points shall equal the sum of the 
        percentage reduction in its child tobacco use level required 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 baseline 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 applied 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 public awareness campaigns and other 
initiatives designed to discourage children from using tobacco products 
and products 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 Secretary has made or failed to 
make a compliance determination 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 District of 
Columbia. In an action seeking review of such determination 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 person 
        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 subsection (a).
    (c) Interest.--If the judgment of a court in an action under 
subsection (a) results in the reduction of a payment paid by a 
manufacturer under section 304, the manufacturer shall be paid from the 
account referred to in such section an amount equal to the amount of 
such reduction 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 account 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 amended 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 promulgate 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 establish performance objectives under section 302 
        relating 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 Secretary 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 interval would be no greater than plus or minus 1 
        percentage point.
            (2) Survey conditions.--The annual performance surveys 
        shall--
                    (A) be household-based surveys; and
                    (B) not be subject to State or local regulation 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 consented 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 different racial and ethnic 
backgrounds. If the Secretary determines 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 recommendations 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 
        manufacturer's tobacco products as determined in an annual 
        performance survey or under section 305(a)
            (4) Existing manufacturer.--The term ``existing 
        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 manufacturer'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 environmental tobacco smoke, the responsible 
entity for each public facility shall adopt and implement at such 
facility a smoke-free environment policy which meets the requirements 
of subsection (b).
    (b) Elements of Policy.--Each smoke-free environment 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 locations at the public 
        facility.
The policy may provide an exception to the prohibition specified in 
paragraph (1) for one or more specially designated 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 conditions:
            (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 occurring.
            (3) Children are prohibited from entering the area.

SEC. 402. CITIZEN ACTIONS.

    (a) In General.--An action may be brought to enforce the 
requirements of this title by any aggrieved person, any State or local 
government agency, or the Administrator.
    (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 controversy 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 alleged violator 
notice of at least 60 days prior to commencing an action under this 
section. No action may be commenced 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 expert 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 prohibition 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 facilities described in subparagraphs (B) 
through (E) of section 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 ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Public facility.--The term ``public facility'' means 
        any building in which activities substantially 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 primarily engaged 
                in the sale of tobacco and tobacco related products.
            (3) Responsible entity.--The term ``responsible 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 protection 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 Tobacco 
        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 approved as safe and effective for 
tobacco use cessation by the Secretary acting through the Food and Drug 
Administration.
    (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 deliver 
        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, tobacco use 
        cessation, prevention of the use of tobacco products, and other 
        tobacco related matters; and
            (2) surveillance and epidemiology research related 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 linguistically 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 TOBACCO 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 TOBACCO 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 protect public health in 
        such country;
            ``(2) prohibit domestic concerns from--
                    ``(A) selling or distributing tobacco products 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 concern; and
            ``(4) require domestic concerns to take all feasible 
        measures to ensure that tobacco products bearing a brand name 
        controlled or used by a domestic concern are not sold, 
        distributed, advertised, or promoted in a manner that would be 
        prohibited under this section if engaged in by a domestic 
        concern.
    ``(b) Interpretation.--For purposes of this section, advertising or 
promoting tobacco products in a manner 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 
        commonwealth of the United States.''.
    (b) Enforcement.--Section 301 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C 331), as amended 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 PROMOTE 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, distribution, 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, manufacture, advertising, promotion, 
        distribution, packaging, labeling, use, content, imposition of 
        tariffs, or taxation, 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 
        discrimination between countries;
            (2) the Secretary of Commerce certifies in writing 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 Services certifies to 
        Congress in writing that the restriction is not a reasonable 
        means of protecting the public health.
    (c) Definition.--In this section, the term ``arbitrary 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 International 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 Secretary may, without 
        fiscal year limitation, use funds from the International 
        Tobacco Control Trust Fund to fund grants and other forms of 
        assistance to foreign governments, nongovernment organizations, 
        and international organizations to support tobacco control 
        activities in foreign countries.
            (3) Enforcement.--The Secretary may, without fiscal year 
        limitation, use funds from the International Tobacco Control 
        Trust Fund for enforcement of any requirement related to the 
        sale, distribution, marketing, or promotion of tobacco products 
        in foreign countries.

SEC. 604. AMERICAN CENTER ON GLOBAL HEALTH AND TOBACCO.

    (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 include--
                    (A) public awareness campaigns to discourage the 
                use of tobacco products;
                    (B) youth oriented and community-based programs to 
                discourage the use of tobacco products; 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 members shall be appointed on the basis of 
        expertise in tobacco control, public awareness campaigns, 
        international affairs, and other relevant fields.
            (2) Terms.--The term of office of a member of the board 
        shall be 6 years, except that (as designated 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 members 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, activities, financial condition, and 
accomplishments under this section and may include such recommendations 
as ACT deems appropriate.

SEC. 605. ASSESSMENT ON TOBACCO PRODUCTS MANUFACTURED IN A FOREIGN 
              COUNTRY.

    (a) Assessment.--By March 31 of each year beginning 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 manufactured 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 district 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 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.
    (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 
        commonwealth of the United States.

SEC. 606. PREVENTION OF TOBACCO SMUGGLING.

    Chapter VIII of the Federal Food, Drug, and Cosmetic Act (as 
amended by section 601) is amended by adding at the end the following:

``SEC. 805. PREVENTION OF TOBACCO SMUGGLING.

    ``Not later than 2 years after the date of the enactment of this 
Act, the Secretary of the Treasury, in consultation with the Secretary 
of Health and Human Services, shall promulgate regulations to reduce, 
to the maximum 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 Convention on Tobacco Control through all 
available resources, including direct financial support, technical 
assistance, and any other appropriate measure.

                TITLE VII--TOBACCO ACCOUNTABILITY BOARD

SEC. 701. TOBACCO ACCOUNTABILITY BOARD.

    (a) Establishment.--There is established an independent 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 appointed 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 appointed shall have terms of 2, 
3, 4, and 5 years, respectively, as determined by the Secretary.

SEC. 702. DISCLOSURE OF TOBACCO INDUSTRY DOCUMENTS.

    (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 documents 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 products 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, subject to subsection (c), make available to 
the public the documents 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 disclosure of such information is appropriate to 
protect the public health. This subsection shall not prevent the 
disclosure of relevant information to Federal agencies or to the 
Congress.

SEC. 703. INVESTIGATION AND ANNUAL REPORTS.

    The Board shall investigate all matters relating to tobacco 
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 effects or addiction 
        caused by the use of tobacco products;
            (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 tobacco products;
            (3) any efforts by tobacco manufacturers to sell or market 
        tobacco products to children; and
            (4) any efforts by tobacco manufacturers to circumvent, 
        repeal, modify, impede the implementation of, or prevent the 
        adoption of, any Federal, State, or local law or regulation 
        related to tobacco products.

SEC. 704. AUTHORITIES.

    The Board, any member of the Board, or staff designated by the 
Board may hold hearings, administer oaths, require the testimony or 
deposition of witnesses, the production 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 appropriate 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 receive such salary 
and benefits as the Secretary deems necessary, 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 
Congress, 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 otherwise 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 
beginning on the date of such discharge, demotion, or discrimination.
    (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 alleged 
        violation of law; or
            (2) knowingly or recklessly provides substantially 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 concerning the 
disclosure.

SEC. 708. DEFINITIONS.

    For purposes of this title:
            (1) Board.--The term ``Board'' means the Tobacco 
        Accountability Board.
            (2) Tobacco manufacturer.--The term ``tobacco 
        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 primarily 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.
    (b) Effect of Election.--
            (1) Limitation.--Except as provided in paragraph (2), if a 
        State elects to receive payments under section 802, the State 
        may not seek recovery from manufacturers for health care costs 
        attributable to the use of tobacco products.
            (2) Future and criminal conduct.--The limitation in 
        paragraph (1) shall not apply to civil actions based on conduct 
        by a manufacturer that occurs after the date of the enactment 
        of this Act or to criminal prosecutions.

SEC. 802. PAYMENTS TO STATES.

    (a) Amount.--If a State elects to receive payments under this 
section, the Secretary of the Treasury shall, within 90 days of such 
election and annually thereafter, pay from the United States Treasury 
to the State the amount that the State would have received under the 
Proposed Resolution entered in by the manufacturers and the State 
attorneys general on June 20, 1997.
    (b) Local Governments.--A State that receives a payment under 
subsection (a) shall pass through to local governments within the State 
a portion of the payments if the local governments incurred health care 
costs attributable to the use of tobacco products. The portion of the 
payments passed through to a local government shall be proportionate to 
the portion of the health care costs attributable 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 
subsection shall not be eligible to receive future payments under 
subsection (a).

SEC. 803. EXEMPT MANUFACTURERS.

    (a) Exemption.--A manufacturer described in subsection (b) shall 
not be required to pay--
            (1) that portion of an annual payment under section 102(b) 
        that is attributable to the manufacture 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 substantially 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 cigarettes manufactured or imported in the United 
States in the applicable calendar year.

                        Subtitle B--State Grants

SEC. 811. PUBLIC AWARENESS AND PREVENTION PROGRAMS.

    (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 approved 
        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 section 102(b) in each year there 
        shall be made available to the Secretary, without fiscal year 
        limitation, $400,000,000 to make grants to States with approved 
        plans to carry out community-based programs 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 information as the Secretary may require.
            (2) State plans.--To be approved by the Secretary, an 
        application under paragraph (1) shall include 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 ensure 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 ensure that 
                programs funded by a grant will be age appropriate, 
                culturally appropriate, and linguistically appropriate 
                for the target population;
                    (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 ensure that 
                local entities and public health officials are involved 
                in the planning and implementation of programs under 
                its grant.
            (3) Additional requirements.--To be eligible 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 reports containing 
                such information as the Secretary may require in order 
                to enable the Secretary 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 
making or renewing a grant based on such plan, make a determination as 
to whether the State has satisfactorily met the requirements for data, 
evaluations, and other conditions agreed to by the State in its plan. 
If, after providing notice and opportunity for a hearing, the Secretary 
determines the State is not in compliance with such requirements, 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 EXPENSES.

    (a) Amendment.--Section 1903 of the Social Security 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 attributable to the costs of 
        offering, arranging, and furnishing (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 `approved tobacco 
use cessation programs' means those 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 
approved as safe and effective for tobacco use cessation by the 
Secretary acting through the Food and Drug Administration.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to expenditures for items and services furnished under an 
approved tobacco use cessation program beginning April 1, 1999.

                         TITLE IX--DEFINITIONS

SEC. 901. DEFINITIONS.

    Except as otherwise provided, in this Act:
            (1) Manufacturer.--The term ``manufacturer'' means any 
        person who manufactures or imports a tobacco product.
            (2) Person.--The term ``person'' means an individual, 
        partnership, corporation, parent corporation, or any other 
        business or legal entity or successor 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 Commonwealth of Puerto Rico, 
        Guam, the Virgin Islands, American Samoa, the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States. Such term includes any political subdivision of any 
        State.
            (5) Tobacco product.--The term ``tobacco product'' means 
        any product made of or derived from tobacco that is intended 
        for human consumption.
            (6) Unit.--The term ``unit'' means 20 cigarettes in the 
        case of cigarettes and a comparable amount, as determined by 
        the Secretary or the Secretary of the Treasury, in the case of 
        other tobacco products.
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