110 HR 6791 IH: National Cancer Fund Act of U.S. House of Representatives 2008-08-01 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 6791 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.

1.

Short title

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

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.

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:

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..

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.

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.

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.

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.