[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6791 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6791

 To amend the Internal Revenue Code of 1986 to increase Federal excise 
    taxes on tobacco products and to dedicate the revenues from the 
                 increased taxes to the war on cancer.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2008

Mr. Higgins (for himself and Mr. Israel) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
      to the Committee on Energy and Commerce, 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 amend the Internal Revenue Code of 1986 to increase Federal excise 
    taxes on tobacco products and to dedicate the revenues from the 
                 increased taxes to the war on cancer.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Cancer Fund Act of 2008''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to establish a National Cancer Fund in order to 
        accelerate progress in the war on cancer and to expand 
        federally funded cancer research and control programs with the 
        goal of reducing cancer mortality to zero, to benefit cancer 
        patients, ensure a high quality of life for cancer survivors, 
        and provide for palliative and end-of-life care,
            (2) to prepare for the looming impact of an aging American 
        population and the anticipated financial burden associated with 
        medical treatment and lost productivity, along with the toll of 
        human suffering that accompanies a cancer diagnosis, and
            (3) to support the advancement of science and the 
        development of advanced technologies and medicine to improve 
        the prevention, early detection, and treatment of cancer.

SEC. 3. NATIONAL CANCER FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end thereof the following new section:

``SEC. 9511. NATIONAL CANCER FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `National Cancer 
Fund', consisting of such amounts as may be appropriated or credited to 
the National Cancer Fund as provided in this section or section 
9602(b).
    ``(b) Transfer of Funds to the National Cancer Fund.--There are 
hereby appropriated to the National Cancer Fund amounts equivalent to 
so much of the taxes received in the Treasury under chapter 52 
(relating to tobacco products and cigarette papers and tubes) as are 
attributable to the amendments made by the National Cancer Fund Act of 
2008.
    ``(c) Expenditures From National Cancer Fund.--Amounts in the 
National Cancer Fund shall be available, as provided by appropriation 
Acts, for making expenditures for--
            ``(1) cancer research, with an emphasis on most lethal 
        forms of cancer, defined as those cancers with 5 year survival 
        rates below 50 percent, along with an additional emphasis on 
        rare cancers, and focusing on the development of effective 
        prevention, early detection tools, and treatments,
            ``(2) development and expansion of NIH cancer programs to 
        explore cancer biology, expand high-risk high-reward research, 
        support large-scale collaborative projects, and support other 
        programs to accelerate the research and development, and the 
        delivery of cancer prevention and early detection tools, 
        treatments, and therapies,
            ``(3) increased study of the long-term effects of cancer 
        treatment on cancer survivors and the challenges associated 
        with access to quality follow up care and may provide for the 
        expansion and coordination of cancer survivorship research 
        activities at National Cancer Institute-designated cancer 
        centers,
            ``(4) expansion of breast and cervical cancer early 
        detection and treatment programs that cover screening and 
        treatment for women who do not have access to health care,
            ``(5) expansion of colorectal cancer early detection and 
        treatment programs to cover men and women who do not otherwise 
        have access to health care,
            ``(6) development and expansion of early detection and 
        treatment programs to cover men and women who do not otherwise 
        have access to health care,
            ``(7) expansion of access to cancer-related clinical trials 
        and health care for underserved and underinsured populations,
            ``(8) increased access for federally sponsored cancer 
        clinical trials,
            ``(9) implementation of a nationwide tobacco cessation 
        program, and
            ``(10) expansion and support of regulatory sciences to 
        speed the development of biomarkers, advanced disease modeling, 
        co-development of diagnostics and therapeutics, enhanced 
        clinical trial design, biological standards for baseline 
        metrics, and other tools for assessing the efficacy of new 
        therapeutic agents in order to expedite the delivery of more 
        effective cancer treatments to patients,
            ``(11) development and expansion of the cancer workforce, 
        and
            ``(12) other such cancer-related activities as deemed 
        appropriate.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end the following new item:

``Sec. 9511. National Cancer Fund.''.

SEC. 4. PRESIDENT'S CANCER PANEL.

    (a) In General.--Section 415(a) of the Public Health Service Act 
(42 U.S.C. 285a-4) is amended to read as follows:
    ``(a) Membership.--
            ``(1) The President's Cancer Panel (hereafter in this 
        section referred to as the `Panel') shall be composed of 5 
        persons appointed by the President who, by virtue of their 
        training, experience, and background, are exceptionally 
        qualified to appraise the cancer research, control, and 
        regulatory programs of the Federal Government. At least 3 
        members of the Panel shall be distinguished scientists or 
        physicians, including one who is an expert in public health, 
        and one who has a related area of expertise in basic research.
            ``(2) Members of the Panel shall be appointed for five-year 
        terms, except that (i) any member appointed to fill a vacancy 
        occurring prior to the expiration of the term for which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of such term, and (ii) a member may serve until 
        the member's successor has taken office. If a vacancy occurs in 
        the Panel, the President shall make an appointment to fill the 
        vacancy not later than 90 days after the date the vacancy 
        occurred.''.
    (b) Duties.--Section 415(b) of the Public Health Service Act (42 
U.S.C. 285a-4) is amended to read as follows:
    ``(b) Duties.--
            ``(1) The Panel shall monitor the development and execution 
        of the cancer-related programs and activities of the Federal 
        Government and shall report directly to the President and 
        Congress. Any delays or blockages in rapid execution of these 
        programs and activities shall immediately be brought to the 
        attention of the President and Congress.
            ``(2) The Panel shall submit to the President periodic 
        progress reports on the National Cancer Program and shall 
        submit to the President, the Secretary, and the Congress an 
        annual evaluation of the efficacy of the Program and 
        suggestions for improvements, and shall submit such other 
        reports as the President shall direct.
            ``(3) The Panel shall submit an annual report of the short 
        and long-term needs and opportunities of federally-funded 
        cancer programs and make recommendations on how to better 
        integrate and coordinate these activities in furtherance of 
        advancing progress in the war on cancer. Such reports will be 
        based on recommendations to be developed through one or more 
        meetings convened at least once each year that would include 
        the participation of individuals with extensive expertise in 
        the areas of expenditure enumerated under section (3)(a) of 
        this Act, including representation from the relevant federally-
        funded cancer programs.''.
    (c) Alternative Funding Sources for National Cancer Fund.--Section 
415 of the Public Health Service Act (42 U.S.C. 285a-4) is amended by 
adding at the end the following new subsection:
    ``(c) Alternative Funding Sources for National Cancer Fund.--
            ``(1) In general.--Beginning no later than 6 months after 
        the date of the enactment of this subsection, the Panel shall 
        convene one or more meetings to support an examination of the 
        feasibility of additional sources of funding that could be 
        credited to the National Cancer Fund in order to determine 
        which funding supplemental sources for federally funded cancer 
        programs will provide the greatest opportunities for 
        strengthening these programs.
            ``(2) Participants.--Such meetings shall be comprised of 
        individuals having expertise in public and private finance, 
        capital investment, public health, cancer research, cancer 
        prevention, cancer screening, and cancer treatment, in order to 
        determine the needs of the National Cancer Fund along with 
        viable options for supporting the fund.
            ``(3) Deadline for report.--Within 1 year after the date of 
        the enactment of this subsection, the Panel shall issue a 
        report to be delivered to Congress with recommendations for 
        funding the National Cancer Fund.''

SEC. 5. INCREASE IN EXCISE TAX RATE ON TOBACCO PRODUCTS.

    (a) Cigars.--Section 5701(a) of the Internal Revenue Code of 1986 
is amended--
            (1) by striking ``$1.828 cents per thousand ($1.594 cents 
        per thousand on cigars removed during 2000 or 2001)'' in 
        paragraph (1) and inserting ``$50.00 per thousand'',
            (2) by striking ``20.719 percent (18.063 percent on cigars 
        removed during 2000 or 2001)'' in paragraph (2) and inserting 
        ``52.988 percent'', and
            (3) by striking ``$48.75 per thousand ($42.50 per thousand 
        on cigars removed during 2000 or 2001)'' in paragraph (2) and 
        inserting ``$3.00 per cigar''.
    (b) Cigarettes.--Section 5701(b) of such Code is amended--
            (1) by striking ``$19.50 per thousand ($17 per thousand on 
        cigarettes removed during 2000 or 2001)'' in paragraph (1) and 
        inserting ``$50.00 per thousand'', and
            (2) by striking ``$40.95 per thousand ($35.70 per thousand 
        on cigarettes removed during 2000 or 2001)'' in paragraph (2) 
        and inserting ``$105.00 per thousand''.
    (c) Cigarette Papers.--Section 5701(c) of such Code is amended by 
striking ``1.22 cents (1.06 cents on cigarette papers removed during 
2000 or 2001)'' and inserting ``3.13 cents''.
    (d) Cigarette Tubes.--Section 5701(d) of such Code is amended by 
striking ``2.44 cents (2.13 cents on cigarette tubes removed during 
2000 or 2001)'' and inserting ``6.26 cents''.
    (e) Smokeless Tobacco.--Section 5701(e) of such Code is amended--
            (1) by striking ``58.5 cents (51 cents on snuff removed 
        during 2000 or 2001)'' in paragraph (1) and inserting 
        ``$1.50'', and
            (2) by striking ``19.5 cents (17 cents on chewing tobacco 
        removed during 2000 or 2001)'' in paragraph (2) and inserting 
        ``50 cents''.
    (f) Pipe Tobacco.--Section 5701(f) of such Code is amended by 
striking ``$1.0969 cents (95.67 cents on pipe tobacco removed during 
2000 or 2001)'' and inserting ``$2.8126 cents''.
    (g) Roll-Your-Own Tobacco.--Section 5701(g) of such Code is amended 
by striking ``$1.0969 cents (95.67 cents on roll-your-own tobacco 
removed during 2000 or 2001)'' and inserting ``$8.8889 cents''.
    (h) Floor Stocks Taxes.--
            (1) Imposition of tax.--On tobacco products (other than 
        cigars described in section 5701(a)(2) of the Internal Revenue 
        Code of 1986) and cigarette papers and tubes manufactured in or 
        imported into the United States which are removed before 
        January 1, 2009, and held on such date for sale by any person, 
        there is hereby imposed a tax in an amount equal to the excess 
        of--
                    (A) the tax which would be imposed under section 
                5701 of such Code on the article if the article had 
                been removed on such date, over
                    (B) the prior tax (if any) imposed under section 
                5701 of such Code on such article.
            (2) Credit against tax.--Each person shall be allowed as a 
        credit against the taxes imposed by paragraph (1) an amount 
        equal to $500. Such credit shall not exceed the amount of taxes 
        imposed by paragraph (1) on January 1, 2009, for which such 
        person is liable.
            (3) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding tobacco 
                products, cigarette papers, or cigarette tubes on 
                January 1, 2009, to which any tax imposed by paragraph 
                (1) applies shall be liable for such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe by regulations.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before April 1, 2009.
            (4) Articles in foreign trade zones.--Notwithstanding the 
        Act of June 18, 1934 (commonly known as the Foreign Trade Zone 
        Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other 
        provision of law, any article which is located in a foreign 
        trade zone on January 1, 2009, shall be subject to the tax 
        imposed by paragraph (1) if--
                    (A) internal revenue taxes have been determined, or 
                customs duties liquidated, with respect to such article 
                before such date pursuant to a request made under the 
                1st proviso of section 3(a) of such Act, or
                    (B) such article is held on such date under the 
                supervision of an officer of the United States Customs 
                and Border Protection of the Department of Homeland 
                Security pursuant to the 2d proviso of such section 
                3(a).
            (5) Definitions.--For purposes of this subsection--
                    (A) In general.--Any term used in this subsection 
                which is also used in section 5702 of the Internal 
                Revenue Code of 1986 shall have the same meaning as 
                such term has in such section.
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or the Secretary's delegate.
            (6) Controlled groups.--Rules similar to the rules of 
        section 5061(e)(3) of such Code shall apply for purposes of 
        this subsection.
            (7) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 5701 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply to the floor stocks taxes imposed by 
        paragraph (1), to the same extent as if such taxes were imposed 
        by such section 5701. The Secretary may treat any person who 
        bore the ultimate burden of the tax imposed by paragraph (1) as 
        the person to whom a credit or refund under such provisions may 
        be allowed or made.
    (i) Effective Date.--The amendments made by this section shall 
apply to articles removed (as defined in section 5702(j) of the 
Internal Revenue Code of 1986) after December 31, 2009.

SEC. 6. ADMINISTRATIVE IMPROVEMENTS.

    (a) Permit, Report, and Record Requirements for Manufacturers and 
Importers of Processed Tobacco.--
            (1) Permits.--
                    (A) Application.--Section 5712 of the Internal 
                Revenue Code of 1986 is amended by inserting ``or 
                processed tobacco'' after ``tobacco products''.
                    (B) Issuance.--Section 5713(a) of such Code is 
                amended by inserting ``or processed tobacco'' after 
                ``tobacco products''.
            (2) Inventories and reports.--
                    (A) Inventories.--Section 5721 of such Code is 
                amended by inserting ``, processed tobacco,'' after 
                ``tobacco products''.
                    (B) Reports.--Section 5722 of such Code is amended 
                by inserting ``, processed tobacco,'' after ``tobacco 
                products''.
            (3) Records.--Section 5741 of such Code is amended by 
        inserting ``, processed tobacco,'' after ``tobacco products''.
            (4) Manufacturer of processed tobacco.--Section 5702 of 
        such Code is amended by adding at the end the following new 
        subsection:
    ``(p) Manufacturer of Processed Tobacco.--
            ``(1) In general.--The term `manufacturer of processed 
        tobacco' means any person who processes any tobacco other than 
        tobacco products.
            ``(2) Processed tobacco.--The processing of tobacco shall 
        not include the farming or growing of tobacco or the handling 
        of tobacco solely for sale, shipment, or delivery to a 
        manufacturer of tobacco products or processed tobacco.''.
            (5) Conforming amendment.--Section 5702(k) of such Code is 
        amended by inserting ``, or any processed tobacco,'' after 
        ``nontaxpaid tobacco products or cigarette papers or tubes''.
            (6) Effective date.--The amendments made by this subsection 
        shall take effect on January 1, 2009.
    (b) Basis for Denial, Suspension, or Revocation of Permits.--
            (1) Denial.--Paragraph (3) of section 5712 of such Code is 
        amended to read as follows:
            ``(3) such person (including, in the case of a corporation, 
        any officer, director, or principal stockholder and, in the 
        case of a partnership, a partner)--
                    ``(A) is, by reason of his business experience, 
                financial standing, or trade connections or by reason 
                of previous or current legal proceedings involving a 
                felony violation of any other provision of Federal 
                criminal law relating to tobacco products, cigarette 
                paper, or cigarette tubes, not likely to maintain 
                operations in compliance with this chapter,
                    ``(B) has been convicted of a felony violation of 
                any provision of Federal or State criminal law relating 
                to tobacco products, cigarette paper, or cigarette 
                tubes, or
                    ``(C) has failed to disclose any material 
                information required or made any material false 
                statement in the application therefor.''.
            (2) Suspension or revocation.--Subsection (b) of section 
        5713 of such Code is amended to read as follows:
    ``(b) Suspension or Revocation.--
            ``(1) Show cause hearing.--If the Secretary has reason to 
        believe that any person holding a permit--
                    ``(A) has not in good faith complied with this 
                chapter, or with any other provision of this title 
                involving intent to defraud,
                    ``(B) has violated the conditions of such permit,
                    ``(C) has failed to disclose any material 
                information required or made any material false 
                statement in the application for such permit,
                    ``(D) has failed to maintain his premises in such 
                manner as to protect the revenue,
                    ``(E) is, by reason of previous or current legal 
                proceedings involving a felony violation of any other 
                provision of Federal criminal law relating to tobacco 
                products, cigarette paper, or cigarette tubes, not 
                likely to maintain operations in compliance with this 
                chapter, or
                    ``(F) has been convicted of a felony violation of 
                any provision of Federal or State criminal law relating 
                to tobacco products, cigarette paper, or cigarette 
                tubes,
        the Secretary shall issue an order, stating the facts charged, 
        citing such person to show cause why his permit should not be 
        suspended or revoked.
            ``(2) Action following hearing.--If, after hearing, the 
        Secretary finds that such person has not shown cause why his 
        permit should not be suspended or revoked, such permit shall be 
        suspended for such period as the Secretary deems proper or 
        shall be revoked.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (c) Application of Internal Revenue Code Statute of Limitations for 
Alcohol and Tobacco Excise Taxes.--
            (1) In general.--Section 514(a) of the Tariff Act of 1930 
        (19 U.S.C. 1514(a)) is amended by striking ``and section 520 
        (relating to refunds)'' and inserting ``section 520 (relating 
        to refunds), and section 6501 of the Internal Revenue Code of 
        1986 (but only with respect to taxes imposed under chapters 51 
        and 52 of such Code)''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to articles imported after the date of the 
        enactment of this Act.
    (d) Expansion of Definition of Roll-Your-Own Tobacco.--
            (1) In general.--Section 5702(o) of the Internal Revenue 
        Code of 1986 is amended by inserting ``or cigars, or for use as 
        wrappers thereof'' before the period at the end.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to articles removed (as defined in section 5702(j) 
        of the Internal Revenue Code of 1986) after December 31, 2009.
    (e) Time of Tax for Unlawfully Manufactured Tobacco Products.--
            (1) In general.--Section 5703(b)(2) of such Code is amended 
        by adding at the end the following new subparagraph:
                    ``(F) Special rule for unlawfully manufactured 
                tobacco products.--In the case of any tobacco products, 
                cigarette paper, or cigarette tubes produced in the 
                United States at any place other than the premises of a 
                manufacturer of tobacco products, cigarette paper, or 
                cigarette tubes that has filed the bond and obtained 
                the permit required under this chapter, tax shall be 
                due and payable immediately upon manufacture.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.

SEC. 7. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    Subparagraph (B) of section 401(1) of the Tax Increase Prevention 
and Reconciliation Act of 2005 is amended by striking ``114.75 
percent'' and inserting ``113.75 percent''.
                                 <all>