[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 579 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 579

    To establish a comprehensive Federal tobacco product regulatory 
   program, to create a Tobacco Regulatory Agency, to prevent use of 
tobacco products by youth, and to provide protections for adult tobacco 
     product users through the regulation of the tobacco products 
                        manufacturing industry.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 12, 2009

 Mr. Burr (for himself and Mrs. Hagan) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
    To establish a comprehensive Federal tobacco product regulatory 
   program, to create a Tobacco Regulatory Agency, to prevent use of 
tobacco products by youth, and to provide protections for adult tobacco 
     product users through the regulation of the tobacco products 
                        manufacturing industry.

    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 ``Federal Tobacco 
Act of 2009''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Establishment of the Tobacco Regulatory Agency.
Sec. 102. Exclusion of other regulatory programs.
Sec. 103. Existing Federal statutes maintained.
Sec. 104. Proceedings in the name of the United States; subpoenas; 
                            preemption of State and local law; no 
                            private right of action.
Sec. 105. Advisory committees.
Sec. 106. Illicit trade.
Sec. 107. Adulterated tobacco products.
Sec. 108. Misbranded tobacco products.
Sec. 109. Registration and listing.
Sec. 110. Effective date.
TITLE II--RESTRICTIONS ON YOUTH ACCESS TO TOBACCO PRODUCTS AND EXPOSURE 
         OF YOUTH TO TOBACCO PRODUCT MARKETING AND ADVERTISING

Sec. 201. Prohibitions on youth targeting.
Sec. 202. State law regarding sale of tobacco products to individuals 
                            under age of 18.
Sec. 203. Restrictions on descriptors used in marketing of cigarettes.
    TITLE III--REDUCED-EXPOSURE AND REDUCED-RISK CLAIMS FOR TOBACCO 
          PRODUCTS, AND RANKING OF TOBACCO PRODUCT CATEGORIES

Sec. 301. Prohibition of unapproved reduced-exposure and reduced-risk 
                            claims.
Sec. 302. Applications for approval of reduced-exposure and reduced-
                            risk claims.
Sec. 303. Standards for approval of applications for reduced-exposure 
                            or reduced-risk claims.
Sec. 304. General provisions.
Sec. 305. Establishment of rankings.
Sec. 306. Compulsory licensing.
Sec. 307. Moist snuff warnings.
     TITLE IV--DISCLOSURES TO THE AGENCY REGARDING TOBACCO PRODUCTS

Sec. 401. Confidential disclosures to the agency.
Sec. 402. Nicotine reporting requirements for cigarettes.
Sec. 403. Nicotine reporting requirements for smokeless tobacco 
                            products.
                    TITLE V--TAR AND NICOTINE YIELDS

Sec. 501. Determination of tar and nicotine yields of cigarettes.
Sec. 502. Cigarette tar limits.
Sec. 503. Prohibition of smoking article yield terms.
Sec. 504. Disclosure of tar and nicotine yields of cigarettes.
Sec. 505. Evaluation of tobacco smoke toxicants.
      TITLE VI--PUBIC DISCLOSURES BY TOBACCO PRODUCT MANUFACTURERS

Sec. 601. Disclosures on packages of smoking articles.
Sec. 602. Disclosures on packages of chewing tobacco and dry snuff.
Sec. 603. Public disclosure of ingredients.
Sec. 604. Cigarette label and advertising warnings.
                   TITLE VII--ENFORCEMENT PROVISIONS

Sec. 701. Prohibited acts.
Sec. 702. Injunction proceedings.
Sec. 703. Penalties.
Sec. 704. Seizure.
Sec. 705. Report of minor violations.
Sec. 706. Inspection.
Sec. 707. Effect of compliance.
Sec. 708. Imports.
Sec. 709. Tobacco products for export.
                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Use of payments under the master settlement agreement and 
                            individual State settlement agreements.
Sec. 802. User fees.
Sec. 803. Fire safety standards for cigarettes.
Sec. 804. Inspection by the alcohol and tobacco tax trade bureau of 
                            records of certain cigarette and smokeless 
                            tobacco sellers.
Sec. 805. Tobacco grower protection.
Sec. 806. Severability.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to provide Federal authority and an appropriate 
        administrative body designed specifically to regulate tobacco 
        products, including smoking articles and smokeless tobacco 
        products;
            (2) to affirm the lawfulness of tobacco products and to 
        ensure the ability of private manufacturers to compete for the 
        business of adult users of tobacco products, including smokers 
        and users of smokeless tobacco, in a free enterprise system;
            (3) to confirm that cigarettes and other tobacco products, 
        as customarily marketed, are not subject to regulation under 
        the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 201 et 
        seq.), but instead are subject to regulation under this and 
        other appropriate Acts;
            (4) to ensure that existing Federal laws regulating certain 
        aspects of tobacco and tobacco product production, as well as 
        tobacco product taxation, testing, marketing, promotion, and 
        advertising remain in full force and effect, except as repealed 
        or amended by this Act;
            (5) to ensure that tobacco products sold in the United 
        States conform with all applicable laws and regulations;
            (6) to strengthen enforcement against illegal sales of 
        tobacco products, including the smuggling of illegal cigarettes 
        and other tobacco products into the United States;
            (7) to restrict access to tobacco products on the part of 
        individuals younger than the minimum age established by State 
        law for the purchase of tobacco products, and to limit the 
        exposure of such individuals to tobacco product advertising, 
        marketing, and promotion;
            (8) to continue to permit the sale of tobacco products to 
        adults in conjunction with measures to ensure that tobacco 
        products are not sold or accessible to those who have not 
        attained the minimum age established by State law for the 
        purchase of tobacco products;
            (9) to allow tobacco product manufacturers to communicate 
        truthful and nonmisleading information, in advertising and 
        otherwise, concerning tobacco products to adult users of 
        tobacco products, including smokers and users of smokeless 
        tobacco;
            (10) to ensure that tobacco products sold in the United 
        States do not present adults who choose to use those products 
        with additional health risks beyond those inherent in tobacco 
        use;
            (11) to establish principles and policies governing tobacco 
        products to promote reductions in morbidity and mortality 
        associated with tobacco products, to inform adult users of 
        tobacco products about the relative risks of chronic diseases 
        and serious adverse health conditions associated with tobacco 
        use presented by different categories of tobacco products, and 
        to encourage manufacturers of tobacco products to develop and 
        introduce tobacco products that present reduced exposure of 
        tobacco product users to toxicants in tobacco or in tobacco 
        smoke and tobacco products that present a reduced risk of 
        chronic diseases and serious adverse health conditions 
        associated with tobacco use;
            (12) to promote the ability of adult consumers of tobacco 
        products to obtain truthful and nonmisleading health-related 
        information regarding the tobacco products that those consumers 
        choose to use, while protecting the trade secrets of tobacco 
        product manufacturers; and
            (13) to establish a comprehensive Federal program to deal 
        with tobacco, including the subject matters addressed in 
        paragraphs (1) through (12), such that commerce and the 
        national economy may be--
                    (A) protected to the maximum extent; and
                    (B) not impeded by diverse, nonuniform, and 
                confusing requirements or prohibitions.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        chief executive of the Tobacco Regulatory Agency established 
        under section 101.
            (2) Adult.--The term ``adult'' means any individual who has 
        attained the minimum age under applicable State law to be an 
        individual to whom tobacco products may lawfully be sold.
            (3) Adult-only facility.--The term ``adult-only facility'' 
        means a facility or restricted area, whether open-air or 
        enclosed, where the operator ensures, or has a reasonable basis 
        to believe, that no youth is present. A facility or restricted 
        area need not be permanently restricted to adults in order to 
        constitute an adult-only facility, if the operator ensures, or 
        has a reasonable basis to believe, that no youth is present 
        during any period of operation as an adult-only facility.
            (4) Advertising.--The term ``advertising'' means a 
        communication to the general public by a tobacco product 
        manufacturer, distributor, retailer, or its agents, which 
        identifies a tobacco product by brand name and is intended by 
        such manufacturer, distributor, retailer, or its agents to 
        promote purchases of such tobacco product. Such term shall not 
        include--
                    (A) any advertising or other communication in any 
                tobacco trade publication or tobacco trade promotional 
                material;
                    (B) the content of any scientific publication or 
                presentation, or any patent application or other 
                communication to the United States Patent and Trademark 
                Office or any similar office in any foreign country;
                    (C) any corporate or financial report or financial 
                communication;
                    (D) any communication to a lending institution or 
                to securities holders;
                    (E) any communication not intended for public 
                display or public exposure, except that a direct 
                mailing or direct electronic communication of what 
                otherwise is advertising shall be deemed to be 
                advertising;
                    (F) any communication in, on, or within a factory, 
                office, plant, warehouse, or other facility related to 
                or associated with the development, manufacture, or 
                storage of tobacco products;
                    (G) any communication to any governmental agency, 
                body, official, or employee;
                    (H) any communication to any journalist, editor, 
                Internet blogger, or other author;
                    (I) any communication in connection with 
                litigation, including arbitration and similar 
                proceedings; or
                    (J) any editorial advertisement that addresses a 
                public issue.
            (5) Affiliate.--The term ``affiliate'' means a person that 
        directly or indirectly owns or controls, is owned or controlled 
        by, or is under common ownership or control with, another 
        person. The terms ``owns'', ``is owned'', and ``ownership'' 
        mean ownership of an equity interest, or the equivalent 
        thereof, of 50 percent or more.
            (6) Agency.--The term ``Agency'' means the Tobacco 
        Regulatory Agency established under section 101.
            (7) Age-verified adult.--The term ``age-verified adult'' 
        means any individual who is an adult and--
                    (A) who has stated or acknowledged, after being 
                asked, that he or she is an adult and a tobacco product 
                user, and has presented proof of age identifying the 
                individual and verifying that the individual is an 
                adult; or
                    (B) whose status as an adult has been verified by a 
                commercially available database of such information.
            (8) Annual report.--The term ``annual report'' means a 
        tobacco product manufacturer's annual report to the Agency, 
        which provides ingredient information and nicotine yield 
        ratings for each brand style that the tobacco product 
        manufacturer manufactures for commercial distribution 
        domestically.
            (9) Brand name.--The term ``brand name'' means a brand name 
        of a tobacco product distributed or sold domestically, alone or 
        in conjunction with any other word, trademark, logo, symbol, 
        motto, selling message, recognizable pattern of colors, or any 
        other indicium of product identification identical or similar 
        to, or identifiable with, those used for any domestic brand of 
        tobacco product. Such term shall not include the corporate name 
        of any tobacco product manufacturer that does not, after the 
        effective date of this Act, sell a brand style of tobacco 
        product in the United States that includes such corporate name.
            (10) Brand name sponsorship.--The term ``brand name 
        sponsorship'' means an athletic, musical, artistic, or other 
        social or cultural event, series, or tour, as to which payment 
        is made, or other consideration is provided, in exchange for 
        use of a brand name or names--
                    (A) as part of the name of the event; or
                    (B) to identify, advertise, or promote such event 
                or an entrant, participant, or team in such event in 
                any other way.
            (11) Brand style.--The term ``brand style'' means a tobacco 
        product having a brand name, and distinguished by the selection 
        of the tobacco, ingredients, structural materials, format, 
        configuration, size, package, product descriptor, amount of 
        tobacco, or yield of tar or nicotine.
            (12) Carton.--The term ``carton'' means a container into 
        which packages of tobacco products are directly placed for 
        distribution or sale (such as a carton containing 10 packages 
        of cigarettes), but does not include cases intended for 
        shipping.
            (13) Cartoon.--The term ``cartoon'' means any drawing or 
        other depiction of an object, person, animal, creature or any 
        similar caricature that satisfies any of the following 
        criteria:
                    (A) The use of comically exaggerated features.
                    (B) The attribution of human characteristics to 
                animals, plants or other objects, or the similar use of 
                anthropomorphic technique.
                    (C) The attribution of unnatural or extrahuman 
                abilities, such as imperviousness to pain or injury, X-
                ray vision, tunneling at very high speeds, or 
                transformation.
        Such term shall not include any drawing or other depiction 
        that, on the effective date of this Act, was in use in the 
        United States in any tobacco product manufacturer's corporate 
        logo or in any tobacco product manufacturer's tobacco product 
        packaging.
            (14) Cigar.--The term ``cigar'' has the meaning given such 
        term by the Alcohol and Tobacco Tax and Trade Bureau under 
        section 40.11 of title 27, Code of Federal Regulations.
            (15) Cigarette.--The term ``cigarette'' means--
                    (A) any roll of tobacco wrapped in paper or in any 
                substance not containing tobacco; or
                    (B) any roll of tobacco wrapped in any substance 
                containing tobacco which, because of the appearance of 
                the roll of tobacco, the type of tobacco used in the 
                filler, or its package or labeling, is likely to be 
                offered to, or purchased by, consumers of a cigarette 
                described in subparagraph (A).
            (16) Competent and reliable scientific evidence.--The term 
        ``competent and reliable scientific evidence'' means evidence 
        based on tests, analyses, research, or studies, conducted and 
        evaluated in an objective manner by individuals qualified to do 
        so, using procedures generally accepted in the relevant 
        scientific disciplines to yield accurate and reliable results.
            (17) Distributor.--The term ``distributor'' means any 
        person who furthers the distribution of tobacco products, 
        whether domestic or imported, at any point from the original 
        place of manufacture to the person who sells or distributes the 
        tobacco product to individuals for personal consumption. Common 
        carriers, retailers, and those engaged solely in advertising 
        are not considered distributors for purposes of this Act.
            (18) Domestic, domestically.--The terms ``domestic'' and 
        ``domestically'' mean within the United States, including 
        activities within the United States involving advertising, 
        marketing, distribution, or sale of tobacco products that are 
        intended for consumption within the United States.
            (19) Human image.--The term ``human image'' means any 
        photograph, drawing, silhouette, statue, model, video, 
        likeness, or depiction of the appearance of a human being, or 
        the appearance of any portion of the body of a human being.
            (20) Illicit tobacco product.--The term ``illicit tobacco 
        product'' means any tobacco product intended for commercial 
        distribution for use by consumers in the United States--
                    (A) with respect to which not all applicable duties 
                or taxes have been paid in full;
                    (B) that has been stolen, smuggled, or is otherwise 
                contraband,
                    (C) that is counterfeit; or
                    (D) that has or had a label, labeling, or packaging 
                stating, or that stated, that the product is or was for 
                export only, or that it is or was at any time 
                restricted by section 5704 of the Internal Revenue Code 
                of 1986.
            (21) Illicit trade.--The term ``illicit trade'' means any 
        transfer, distribution, or sale in interstate commerce of any 
        illicit tobacco product.
            (22) Immediate container.--The term ``immediate container'' 
        shall not include package liners.
            (23) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given such term in section 4(e) of the Indian Self 
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (24) Ingredient.--The term ``ingredient'' means tobacco and 
        any substance added to tobacco to have an effect in the final 
        tobacco product or when the final tobacco product is used by a 
        consumer.
            (25) International organization for standardization testing 
        regimen; iso testing regimen.--
                    (A) In general.--The terms ``International 
                Organization for Standardization testing regimen'' or 
                ``ISO testing regimen'' mean the methods for measuring 
                cigarette smoke yields, as set forth in the most recent 
                versions of the following:
                            (i) ISO 3308, entitled ``Routine analytical 
                        cigarette-smoking machine--Definition of 
                        standard conditions''.
                            (ii) ISO 4387, entitled ``Cigarettes--
                        Determination of total and nicotine-free dry 
                        particulate matter using a routine analytical 
                        smoking machine''.
                            (iii) ISO 10315, entitled ``Cigarettes--
                        Determination of nicotine in smoke 
                        condensates--Gas-chromatographic method''.
                            (iv) ISO 10362-1, entitled ``Cigarettes--
                        Determination of water in smoke condensates--
                        Part 1: Gas-chromatographic method''.
                            (v) ISO 8454, entitled ``Cigarettes--
                        Determination of carbon monoxide in the vapour 
                        phase of cigarette smoke--NDIR method''.
                    (B) Clarification.--A cigarette that does not burn 
                down in accordance with the testing regimen standards 
                described in subparagraph (A) may be measured under the 
                same puff regimen using the number of puffs that such a 
                cigarette delivers before it extinguishes, plus an 
                additional 3 puffs, or with such other modifications as 
                the Administrator may approve.
            (26) Interstate commerce.--The term ``interstate commerce'' 
        means all trade, traffic, or other commerce--
                    (A) within the District of Columbia, or any 
                territory or possession of the United States;
                    (B) between any point in a State and any point 
                outside thereof;
                    (C) between points within the same State through 
                any place outside such State; or
                    (D) over which the United States has jurisdiction.
            (27) Label.--The term ``label'' means a display of written, 
        printed, or graphic matter upon or applied securely to the 
        immediate container of a tobacco product.
            (28) Labeling.--The term ``labeling'' means all labels and 
        other written, printed, or graphic matter--
                    (A) upon or applied securely to any tobacco product 
                or any of its containers or wrappers; or
                    (B) accompanying a tobacco product.
            (29) Little cigar.--The term ``little cigar'' has the 
        meaning given such term by the Alcohol and Tobacco Tax and 
        Trade Bureau under section 40.11 of title 27, Code of Federal 
        Regulations.
            (30) Loose tobacco.--The term ``loose tobacco'' means any 
        form of tobacco, alone or in combination with any other 
        ingredient or material, that, because of its appearance, form, 
        type, packaging, or labeling, is suitable for use and likely to 
        be offered to, or purchased by, consumers as tobacco for making 
        or assembling cigarettes, incorporation into pipes, or 
        otherwise used by consumers to make any smoking article.
            (31) Manufacture.--The term ``manufacture'' means to 
        design, manufacture, fabricate, assemble, process, package or 
        repackage, label or relabel, import, or hold or store in a 
        commercial quantity. Such term shall not include--
                    (A) the growing, curing, destemming, or aging of 
                tobacco; or
                    (B) the holding, storing, or transporting of a 
                tobacco product by a common carrier for hire, a public 
                warehouse, a testing laboratory, a distributor, or a 
                retailer.
            (32) Nicotine-containing product.--The term ``nicotine-
        containing product'' means a product intended for human 
        consumption, other than a tobacco product, that contains added 
        nicotine, whether or not in the form of a salt or solvate, 
        which nicotine has been--
                    (A) synthetically produced; or
                    (B) obtained from tobacco or other source of 
                nicotine.
            (33) Outdoor advertising.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``outdoor advertising'' means--
                            (i) a billboard;
                            (ii) a sign or placard in an arena, 
                        stadium, shopping mall, or video game arcade 
                        (whether any of the foregoing is open air or 
                        enclosed), but not including any such sign or 
                        placard located in an adult-only facility; and
                            (iii) any other advertisement placed 
                        outdoors.
                    (B) Limitation.--The term ``outdoor advertising'' 
                shall not include--
                            (i) an advertisement on the outside of a 
                        tobacco product manufacturing facility; or
                            (ii) an advertisement that--
                                    (I) is inside a retail 
                                establishment that sells tobacco 
                                products (other than solely through a 
                                vending machine or vending machines);
                                    (II) is placed on the inside 
                                surface of a window facing outward; and
                                    (III) is no larger than 14 square 
                                feet.
            (34) Package.--The term ``package'' means a pack, box, 
        carton, pouch, or container of any kind in which a tobacco 
        product or tobacco products are offered for sale, sold, or 
        otherwise distributed to consumers. Such term shall not include 
        an outer container used solely for shipping 1 or more packages 
        of a tobacco product or tobacco products.
            (35) Person.--The term ``person'' means any individual, 
        partnership, corporation, committee, association, organization 
        or group of persons, or other legal or business entity.
            (36) Proof of age.--The term ``proof of age'' means a 
        driver's license or other form of identification that is issued 
        by a governmental authority and includes a photograph and a 
        date of birth of the individual.
            (37) Raw tobacco.--The term ``raw tobacco'' means tobacco 
        in a form that is received by a tobacco product manufacturer as 
        an agricultural commodity, whether in a form that is--
                    (A) natural, stem or leaf;
                    (B) cured or aged; or
                    (C) as parts or pieces, but not in a reconstituted 
                form, extracted pulp form, or extract form.
            (38) Reduced-exposure claim.--The term ``reduced-exposure 
        claim'' means a statement in advertising or labeling intended 
        for 1 or more consumers of tobacco products, that a tobacco 
        product provides a reduced exposure of users of that tobacco 
        product to 1 or more toxicants, as compared to an appropriate 
        reference tobacco product or category of tobacco products. A 
        statement or representation that a tobacco product or the 
        tobacco in a tobacco product contains ``no additives'' or is 
        ``natural'', or that uses a substantially similar term is not a 
        reduced-exposure claim if the advertising or labeling that 
        contains such statement or representation also contains the 
        disclosure required by section 108(h).
            (39) Reduced-risk claim.--The term ``reduced-risk claim'' 
        means a statement in advertising or labeling intended for 1 or 
        more consumers of tobacco products, that a tobacco product 
        provides to users of that product a reduced risk of morbidity 
        or mortality resulting from 1 or more chronic diseases or 
        serious adverse health conditions associated with tobacco use, 
        as compared to an appropriate reference tobacco product or 
        category of tobacco products, even if it is not stated, 
        represented, or implied that all health risks associated with 
        using that tobacco product have been reduced or eliminated. A 
        statement or representation that a tobacco product or the 
        tobacco in a tobacco product contains ``no additives'' or is 
        ``natural'', or that uses a substantially similar term is not a 
        reduced-risk claim if the advertising or labeling that contains 
        such statement or representation also contains the disclosure 
        required by section 108(h).
            (40) Retailer.--The term ``retailer'' means any person 
        that--
                    (A) sells tobacco products to individuals for 
                personal consumption; or
                    (B) operates a facility where the sale of tobacco 
                products to individuals for personal consumption is 
                permitted.
            (41) Sample.--The term ``sample'' means a tobacco product 
        distributed to members of the public at no cost for the purpose 
        of promoting the product, but excludes tobacco products 
        distributed--
                    (A) in conjunction with the sale of other tobacco 
                products,
                    (B) for market research, medical or scientific 
                study or testing, or teaching,
                    (C) to persons employed in the tobacco industry;
                    (D) to adult consumers in response to consumer 
                complaints; or
                    (E) to employees of the manufacturer of the tobacco 
                product.
            (42) Small business.--The term ``small business'' means a 
        tobacco product manufacturer that--
                    (A) employs 150 or fewer employees; and
                    (B) during the 3-year period prior to the calendar 
                year in which this Act is enacted, had an average 
                annual gross revenue from tobacco products that did not 
                exceed $40,000,000.
            (43) Smokeless tobacco product.--The term ``smokeless 
        tobacco product'' means any form of finely cut, ground, 
        powdered, reconstituted, processed, or shaped tobacco, leaf 
        tobacco, or stem tobacco, whether or not combined with any 
        other ingredient, whether or not in extract or extracted form, 
        and whether or not incorporated within any carrier or 
        construct, that is intended to be placed in the oral or nasal 
        cavity, including dry snuff, moist snuff, and chewing tobacco.
            (44) Smoking article.--The term ``smoking article'' means 
        any tobacco-containing article that is intended, when used by a 
        consumer, to be burned or otherwise to employ heat to produce a 
        vapor, aerosol, or smoke that--
                    (A) incorporates components of tobacco or derived 
                from tobacco; and
                    (B) is intended to be inhaled by the user.
            (45) State.--The term ``State'' means any State of the 
        United States and, except as otherwise specifically provided, 
        includes any Indian tribe or tribal organization, the District 
        of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
        Islands, American Samoa, Wake Island, Midway Island, Kingman 
        Reef, Johnston Atoll, the Northern Marianas, and any other 
        trust territory or possession of the United States.
            (46) Tar.--The term ``tar'' means nicotine-free dry 
        particulate matter as defined in ISO 4387, entitled 
        ``Cigarettes--Determination of total and nicotine-free dry 
        particulate matter using a routine analytical smoking 
        machine''.
            (47) Tobacco.--The term ``tobacco'' means a tobacco plant 
        or any part of a harvested tobacco plant intended for use in 
        the production of a tobacco product, including leaf, lamina, 
        stem, or stalk, whether in green, cured, or aged form, whether 
        in raw, treated, or processed form, and whether or not combined 
        with other materials, including any by-product, extract, 
        extracted pulp material, or any other material (other than 
        purified nicotine) derived from a tobacco plant or any 
        component thereof, and including strip, filler, stem, powder, 
        and granulated, blended, or reconstituted forms of tobacco.
            (48) Tobacco product.--The term ``tobacco product'' means--
                    (A) the singular of the term ``tobacco products'', 
                as defined in section 5702(c) of the Internal Revenue 
                Code of 1986;
                    (B) any other product that contains tobacco as a 
                principal ingredient and that, because of its 
                appearance, type, or the tobacco used in the product, 
                or its packaging and labeling, is likely to be offered 
                to, or purchased by, consumers as a tobacco product as 
                described in subparagraph (A); and
                    (C) any form of tobacco or any construct 
                incorporating tobacco, intended for human consumption, 
                whether by--
                            (i) placement in the oral or nasal cavity;
                            (ii) inhalation of vapor, aerosol, or 
                        smoke; or
                            (iii) any other means.
            (49) Tobacco product category.--The term ``tobacco product 
        category'' means a type of tobacco product characterized by its 
        composition, components, and intended use, and includes tobacco 
        products classified as cigarettes, loose tobacco for roll-your-
        own tobacco products, little cigars, cigars, pipe tobacco, 
        moist snuff, dry snuff, chewing tobacco, and other forms of 
        tobacco products (which are treated in this Act collectively as 
        a single category).
            (50) Tobacco product communication.--The term ``tobacco 
        product communication'' means any means, medium, or manner for 
        providing information relating to any tobacco product, 
        including face-to-face interaction, mailings by postal service 
        or courier to an individual who is an addressee, and electronic 
        mail to an individual who is an addressee.
            (51) Tobacco product manufacturer.--The term ``tobacco 
        product manufacturer'' means an entity that directly--
                    (A) manufactures a tobacco product that is intended 
                to be distributed commercially in the United States, 
                including a tobacco product intended to be distributed 
                commercially in the United States through an importer;
                    (B) is the first purchaser for resale in the United 
                States of tobacco products manufactured outside the 
                United States for distribution commercially in the 
                United States; or
                    (C) is a successor or assign of any of the 
                foregoing.
            (52) Toxicant.--The term ``toxicant'' means a chemical or 
        physical agent that produces an adverse biological effect.
            (53) Transit advertisements.--The term ``transit 
        advertisements'' means advertising on or within private or 
        public vehicles and all advertisements placed at, on, or within 
        any bus stop, taxi stand, transportation waiting area, train 
        station, airport, or any similar location.
            (54) Tribal organizational.--The term ``tribal 
        organization'' has the meaning given such term by section 4(1) 
        of the Indian Self Determination and Education Assistance Act 
        (25 U.S.C. 450b(l)).
            (55) United states.--The term ``United States'' means the 
        several States, as defined in this Act.
            (56) Vending machine.--The term ``vending machine'' means 
        any mechanical, electric, or electronic self-service device 
        that, upon insertion of money, tokens, or any other form of 
        payment, automatically dispenses tobacco products.
            (57) Video game arcade.--The term ``video game arcade'' 
        means an entertainment establishment primarily consisting of 
        video games (other than video games intended primarily for use 
        by adults) or pinball machines.
            (58) Youth.--The term ``youth'' means any individual who is 
        not an adult.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. ESTABLISHMENT OF THE TOBACCO REGULATORY AGENCY.

    (a) Establishment of Agency.--There is established within the 
Department of Health and Human Services the Tobacco Regulatory Agency. 
The Agency shall not be part of the Food and Drug Administration, and 
shall not in any way be under the authority of the Commissioner of Food 
and Drugs.
    (b) Agency Head; Regulations; Cost-Benefit Analysis.--
            (1) In general.--The Agency shall be headed by an 
        Administrator, to be appointed by the President with the advice 
        and consent of the Senate, who shall have the authority 
        provided under this Act, perform the functions that relate to 
        the subject matter of this Act, and have the authority to 
        promulgate regulations for the efficient enforcement of this 
        Act.
            (2) Regulations.--In promulgating regulations under section 
        107, section 108, or section 502(c), or any regulation that is 
        likely to have an annual effect on the economy of $50,000,000 
        or more, or have a material adverse effect on adult users of 
        tobacco products, tobacco product manufacturers, distributors 
        or retailers, the Administrator shall--
                    (A) determine the technological and economic 
                ability of parties that would be required to comply 
                with the regulation involved to comply with such 
                regulation;
                    (B) consider experience gained under any similar 
                relevant regulations at the Federal or State level; and
                    (C) determine the reasonableness of the 
                relationship between the costs of complying with such 
                regulation and the public health benefits to be 
                achieved by such regulation.

SEC. 102. EXCLUSION OF OTHER REGULATORY PROGRAMS.

    (a) Exclusion of Tobacco Products and Nicotine-Containing Products 
From the Federal Food, Drug, and Cosmetic Act.--No tobacco product or 
nicotine-containing product shall be regulated as a food, drug, or 
device under subsection (f), (g), or (h) of section 201, or chapter IV 
or V, of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(f), 
(g), or (h), 341 et seq., and 351 et seq.), except that any tobacco 
product commercially distributed domestically and any nicotine-
containing product commercially distributed domestically shall be 
subject to chapter V of such Act if the manufacturer or a distributor 
of such product markets it with an explicit claim that the product is 
intended for use in the cure, mitigation, treatment, or prevention of 
disease in man or other animals, within the meaning of section 
201(g)(1)(C) or section 201(h)(2) of such Act.
    (b) Limitation on Effect of This Act.--Nothing in this Act shall be 
construed to--
            (1) establish a precedent with respect to any other 
        industry, situation, circumstance, or legal action; or
            (2) affect any action pending in any Federal, State, or 
        tribal court, or any agreement, consent decree, or contract of 
        any kind.
    (c) Exclusions From Authority of Administrator.--The authority 
granted to the Administrator under this Act shall not apply to--
            (1) raw tobacco that is not in the possession or control of 
        a tobacco product manufacturer;
            (2) raw tobacco that is grown for a tobacco product 
        manufacturer by a grower, and that is in the possession of that 
        grower or of a person that is not a tobacco product 
        manufacturer and is within the scope of subparagraphs (A) 
        through (F) of paragraph (3); or
            (3) the activities, materials, facilities, or practices of 
        persons that are not tobacco product manufacturers and that 
        are--
                    (A) producers of raw tobacco, including tobacco 
                growers;
                    (B) tobacco warehouses, and other persons that 
                receive raw tobacco from growers;
                    (C) tobacco grower cooperatives;
                    (D) persons that cure raw tobacco;
                    (E) persons that process raw tobacco; and
                    (F) persons that store raw tobacco for aging.
        If a producer of raw tobacco is also a tobacco product 
        manufacturer, an affiliate of a tobacco product manufacturer, 
        or a person producing raw tobacco for a tobacco product 
        manufacturer, then that producer shall be subject to this Act 
        only to the extent of that producer's capacity as a tobacco 
        product manufacturer.

SEC. 103. EXISTING FEDERAL LAWS MAINTAINED.

    (a) In General.--Except as otherwise amended or repealed by this 
Act, all Federal laws in effect on the effective date of this Act that 
regulate tobacco, tobacco products, or tobacco product manufacturers 
shall remain in effect. Such laws shall include--
            (1) the Federal Cigarette Labeling and Advertising Act (15 
        U.S.C. 1331 et seq.);
            (2) the Comprehensive Smokeless Tobacco Health Education 
        Act of 1986 (15 U.S.C. 4401 et seq.);
            (3) section 1926 of the Public Health Service Act (42 
        U.S.C. 300x-26); and
            (4) those laws authorizing the regulation of tobacco, 
        tobacco products, or tobacco product manufacturers by the 
        Federal Trade Commission, the Department of Agriculture, the 
        Environmental Protection Agency, the Internal Revenue Service, 
        and the Alcohol and Tobacco Tax and Trade Bureau of the 
        Department of the Treasury.
    (b) Repeals.--The following provisions shall be repealed--
            (1) Section 6 of the Federal Cigarette Labeling and 
        Advertising Act (15 U.S.C. 1335).
            (2) Section 2(f) of the Comprehensive Smokeless Tobacco 
        Health Education Act of 1986 (15 U.S.C. 4401(f)).

SEC. 104. PROCEEDINGS IN THE NAME OF THE UNITED STATES; SUBPOENAS; 
              PREEMPTION OF STATE AND LOCAL LAW; NO PRIVATE RIGHT OF 
              ACTION.

    In carrying out the purpose described in 2(13) the following shall 
apply:
            (1) All proceedings for the enforcement, or to restrain 
        violations, of this Act shall be by and in the name of the 
        United States. Subpoenas for witnesses who are required to 
        attend a court of the United States, in any district, may be 
        enforceable in any other district in any proceeding under this 
        section. No State, or political subdivision thereof, may 
        proceed or intervene in any Federal or State court under this 
        Act or under any regulation promulgated under this Act, or 
        allege any violation thereof, except a violation by the 
        Administrator. Nothing in this Act shall be construed to create 
        a right of action by any private person for any violation of 
        any provision of this Act or of any regulation promulgated 
        under this Act.
            (2) With respect to any subject matter covered by this Act 
        or by any regulation promulgated under this Act, no conflicting 
        requirement or prohibition shall be imposed under State or 
        local law upon any tobacco product manufacturer or distributor.
            (3) Paragraph (2) shall not apply to any requirement or 
        prohibition imposed under State or local law prior to December 
        31, 2009.

SEC. 105. ADVISORY COMMITTEES.

    (a) Establishment.--The Administrator shall establish advisory 
committees for purposes required by this Act and otherwise as the 
Administrator determines appropriate.
    (b) Composition.--
            (1) In general.--An advisory committee established under 
        this Act shall be composed of 11 members, of whom--
                    (A) 3 members shall be officers or employees of the 
                Federal Government, or a State or local government;
                    (B) 3 members shall be representatives of the 
                interests of scientific and health professionals;
                    (C) 2 members shall be representatives of the 
                interests of the general public; and
                    (D) 3 members shall be representatives of the 
                tobacco products manufacturing industry, of which, 1 
                such member shall be a representative of small 
                businesses.
            (2) Administrative provisions.--The Administrator shall 
        designate the chairperson of each advisory committee under this 
        Act from among its members, shall furnish any such advisory 
        committee with clerical and other assistance, and shall 
        establish for all members (other than those who are employees 
        of the Federal Government), appropriate compensation and travel 
        expenses, as authorized by section 7503 of title 5, United 
        States Code.

SEC. 106. ILLICIT TRADE.

    (a) No Action To Increase Illicit Trade.--The Administrator shall 
not promulgate any regulation or take any other action under this Act 
that has the effect of--
            (1) increasing illicit trade involving tobacco or any 
        tobacco product; or
            (2) making affected tobacco products unacceptable to a 
        substantial number of the current users of such products, 
        thereby creating a substantial risk that such users will resort 
        to illicit tobacco products, or tobacco products that are 
        otherwise noncompliant or unlawful.
    (b) Study and Report.--
            (1) Study.--The Administration shall, after consultation 
        with other relevant agencies, conduct a study of trade in 
        tobacco products that involves the passage of such products 
        either from or to any foreign country across any border of the 
        United States, to--
                    (A) collect data on such trade in tobacco products, 
                including illicit trade involving tobacco products, and 
                make recommendations on the monitoring of such trade;
                    (B) collect data on any advertising intended to be 
                broadcast, transmitted, or distributed from the United 
                States to another country and make recommendations on 
                how to prevent or eliminate, and what technologies 
                could help facilitate the elimination of, such 
                advertising; and
                    (C) collect data on such trade in tobacco products 
                by a person that is not--
                            (i) a participating manufacturer (as that 
                        term is defined in section II(jj) of the Master 
                        Settlement Agreement of November 23, 1998, 
                        between certain of the States and certain 
                        tobacco product manufacturers); or
                            (ii) an affiliate or subsidiary of a 
                        participating manufacturer.
            (2) Report.--Not later than 18 months after the effective 
        date of this Act, the Administrator shall submit to the 
        Secretary, and the appropriate committees of Congress, a report 
        concerning the study conducted under paragraph (1).

SEC. 107. ADULTERATED TOBACCO PRODUCTS.

    A tobacco product shall be deemed to be adulterated--
            (1) if such product bears or contains any poisonous or 
        deleterious substance other than--
                    (A) tobacco;
                    (B) a substance naturally present in tobacco;
                    (C) a pesticide or fungicide chemical residue in or 
                on tobacco if such pesticide or fungicide chemical is 
                registered by the Environmental Protection Agency for 
                use on tobacco in the United States; or
                    (D) in the case of imported tobacco, a residue of a 
                pesticide or fungicide chemical that--
                            (i) is approved for use in the country of 
                        origin of the tobacco; or
                            (ii) has not been banned, and the 
                        registration of which has not been canceled, by 
                        the Environmental Protection Agency for use on 
                        tobacco in the United States that may render it 
                        injurious to health, but in the event that the 
                        substance is not an added substance, such 
                        tobacco product shall not be considered 
                        adulterated under this subsection if the 
                        quantity of such substance in such tobacco 
                        product does not ordinarily render it injurious 
                        to health;
            (2) if there is significant scientific agreement that, as a 
        result of the tobacco that such product contains, such product 
        presents a risk to human health that is materially higher than 
        the risk presented by--
                    (A) such product on the effective date of this Act; 
                or
                    (B) if such product was not distributed 
                commercially domestically on that date, by comparable 
                tobacco products of the same style and within the same 
                category that were commercially distributed 
                domestically on that date;
            (3) if such product has been prepared, packed, or held 
        under unsanitary conditions whereby it may have become 
        contaminated with filth;
            (4) if the package of such product is composed, in whole or 
        in part, of any poisonous or deleterious substance that may 
        render the contents injurious to health;
            (5) if the tar yield of such product is in violation of 
        section 502; or
            (6) if such product is not in compliance with the standard 
        prescribed by section 803.

SEC. 108. MISBRANDED TOBACCO PRODUCTS.

    A tobacco product shall be deemed to be misbranded--
            (1) if the labeling of such product is false or misleading 
        in any particular;
            (2) if such product is in package form unless the product 
        bears a label containing--
                    (A) an identification of the type of product, by 
                the common or usual name of such type of product;
                    (B) an accurate statement of the quantity of the 
                contents in the package in terms of weight, measure, or 
                numerical count, except that reasonable variations 
                shall be permitted, and exemptions as to small packages 
                shall be established by regulations promulgated by the 
                Administrator;
                    (C) the name and place of business of the tobacco 
                product manufacturer, packer, or distributor; and
                    (D) the information required by section 601(c) and 
                (e) or section 602(c) and (e), as applicable;
            (3) if any word, statement, or other information required 
        by or under authority of this Act to appear on the label, 
        labeling, or advertising of such product is not prominently 
        placed thereon with such conspicuousness (as compared with 
        other words, statements, or designs on the label, labeling, or 
        advertising, as applicable) and in such terms as to render it 
        reasonably likely to be read and understood by the ordinary 
        individual under customary conditions of purchase and use;
            (4) if any word, statement, or other information is 
        required by this Act to appear on the label of such product, 
        unless such word, statement, or other information also appears 
        on the outside container or wrapper, if any, of the retail 
        package of such tobacco product, or is easily legible through 
        the outside container or wrapper;
            (5) if such product was manufactured, prepared, or 
        processed in an establishment not duly registered under section 
        109, if such product was not included in a list required by 
        section 109, or if a notice or other information with respect 
        to such product was not provided as required by section 109;
            (6) if the packaging, labeling, or advertising of such 
        product is in violation of this Act or of an applicable 
        regulation promulgated in accordance with this Act;
            (7) if such product contains tobacco or another ingredient 
        as to which a required disclosure under this Act was not made;
            (8) if such product is labeled or advertised, or the 
        tobacco contained in such product is advertised, as--
                    (A) containing ``no additives'' or any 
                substantially similar term, unless the labeling or 
                advertising, as applicable, also contains, clearly and 
                prominently, the following disclosure: ``No additives 
                in our tobacco does NOT mean safer''; or
                    (B) being ``natural'', or any substantially similar 
                term, unless the labeling or advertising, as 
                applicable, also contains, clearly and prominently, the 
                following disclosure: ``Natural does NOT mean safer'';
            (9) if in the labeling or advertising of such product a 
        term descriptive of the tobacco in the tobacco product is used 
        otherwise than in accordance with a sanction or approval 
        granted by a Federal agency;
            (10) if with respect to such product a disclosure required 
        by section 603 was not made;
            (11) if with respect to such product a certification 
        required by section 803 was not submitted or is materially 
        false or misleading; or
            (12) if the manufacturer or distributor of such product 
        made with respect to the product a claim prohibited by section 
        301.

SEC. 109. REGISTRATION AND LISTING.

    (a) Definitions.--In this section:
            (1) Manufacture, preparation, or procession.--The term 
        ``manufacture, preparation, or processing'' includes 
        repackaging or otherwise changing the container, wrapper, or 
        label of any tobacco product package other than the carton in 
        furtherance of the distribution of the tobacco product from the 
        original place of manufacture to the person that makes final 
        delivery or sale to the ultimate consumer or user. Such term 
        shall not include the addition of a tax marking or other 
        marking required by law to an already packaged tobacco product.
            (2) Name.--The term ``name'' includes, in the case of a 
        partnership, the name of the general partner and, in the case 
        of a privately held corporation, the name of the chief 
        executive officer of the corporation and the State of 
        incorporation.
    (b) Annual Registration.--Not later than December 31, 2010, and 
December 31 of each year thereafter, a person that owns or operates any 
establishment in any State engaged in the manufacture, preparation, or 
processing of a tobacco product or products for commercial distribution 
domestically shall register with the Administrator its name, places of 
business, and all such establishments.
    (c) New Producers.--A person, upon first engaging, for commercial 
distribution domestically, in the manufacture, preparation, or 
processing of a tobacco product or products in any establishment that 
it owns or operates in any State, shall immediately register with the 
Administrator its name, places of business, and such establishment.
    (d) Registration of Foreign Establishments.--
            (1) In general.--Not later than December 31, 2010, and 
        December 31 of each year thereafter, a person that, within any 
        foreign country, owns or operates any establishment engaged in 
        the manufacture, preparation, or processing of a tobacco 
        product that is imported or offered for import into the United 
        States shall, through electronic means or otherwise as 
        permitted by the Administrator, register with the Administrator 
        the name and place of business of each such establishment, the 
        name of the United States agent for the establishment, and the 
        name of each importer of such tobacco product in the United 
        States that is known to such person.
            (2) Other information.--A person described in paragraph (1) 
        shall, in addition to the information required under paragraph 
        (1), provide the information required by subsection (j), 
        including sales made by mail or through the Internet, or other 
        electronic means.
            (3) Cooperative agreements.--The Administrator may enter 
        into cooperative arrangements with officials of foreign 
        countries to ensure that adequate and effective means are 
        available for purposes of determining, from time to time, 
        whether tobacco products manufactured, prepared, or processed 
        by an establishment described in paragraph (1), if imported or 
        offered for import into the United States, shall be refused 
        admission on any of the grounds set forth in section 708.
    (e) Additional Establishments.--A person duly registered in 
accordance with the preceding subsections of this section shall 
immediately register with the Administrator any additional 
establishment that it owns or operates and in which it begins the 
manufacture, preparation, or processing of a tobacco product or 
products for commercial distribution domestically or for import into 
the United States.
    (f) Exclusions From Application of This Section.--The preceding 
subsections of this section shall not apply to--
            (1) persons that manufacture, prepare, or process tobacco 
        products solely for use in research, teaching, chemical or 
        biological analysis, or export; or
            (2) such other classes of persons as the Administrator may 
        by regulation exempt from the application of this section upon 
        a finding that registration by such classes of persons in 
        accordance with this section is not necessary for the 
        protection of the public health.
    (g) Inspection of Premises.--An establishment registered with the 
Administrator pursuant to this section shall be subject to inspection 
pursuant to section 706. An established described in the preceding 
sentence that is engaged in the manufacture, preparation, or processing 
of a tobacco product or products shall be inspected under section 706 
by 1 or more officers or employees duly designated by the Administrator 
at least once in the 2-year period beginning with the date of 
registration of such establishment pursuant to this section and at 
least once in every successive 2-year period thereafter, except that 
the inspection of establishments outside the United States may be 
conducted by other personnel pursuant to a cooperative arrangement 
under subsection (d)(3).
    (h) Filing of Lists of Tobacco Products Manufactured, Prepared, or 
Processed by Registrants; Statements; Accompanying Disclosures.--
            (1) Filing of lists.--A person that registers with the 
        Administrator under subsection (b), (c), (d), or (e) shall, at 
        the time of such registration, file with the Administrator a 
        list of all brand styles (with each brand style in each list 
        listed by the common or usual name of the tobacco product 
        category to which it belongs and by any proprietary name) that 
        are being manufactured, prepared, or processed by such person 
        for commercial distribution domestically or for import into the 
        United States, and that such person has not included in any 
        list of tobacco products filed by such person with the 
        Administrator under this paragraph or paragraph (2) prior to 
        such time of registration. Such list shall be prepared in such 
        form and manner as the Administrator may prescribe, and shall 
        be accompanied by the label for each such brand style and a 
        representative sampling of any other labeling and advertising 
        for each such brand style.
            (2) Reports of information.--A person that registers with 
        the Administrator under this section (referred in this 
        paragraph as the ``registrant'') shall report to the 
        Administrator, not later than August 30 the preceding 6-month 
        period from January through June, and not later than February 
        28 (or 29 as applicable) for the preceding 6-month period from 
        July through December, each year the following information:
                    (A) A list of each brand style introduced by the 
                registrant for commercial distribution domestically or 
                for import into the United States that has not been 
                included in any list previously filed by such 
                registrant with the Administrator under this 
                subparagraph or paragraph (1). A list under this 
                subparagraph shall list a brand style by the common or 
                usual name of the tobacco product category to which it 
                belongs and by any proprietary name, and shall be 
                accompanied by the other information required by 
                paragraph (1).
                    (B) If, subsequent to the date on which the 
                registrant last made a report under this paragraph (or 
                if such registrant has not previously made a report 
                under this paragraph, after the effective date of this 
                Act), such registrant has discontinued the manufacture, 
                preparation, or processing for commercial distribution 
                domestically or for import into the United States of a 
                brand style included in a list filed by such registrant 
                under subparagraph (A) or paragraph (1), notice of such 
                discontinuance, the date of such discontinuance, and 
                the identity (by the common or usual name of the 
                tobacco product category to which it belongs and by any 
                proprietary name) of such tobacco product.
                    (C) If, subsequent to the date on which the 
                registrant reported pursuant to subparagraph (B) a 
                notice of discontinuance of a tobacco product, the 
                registrant has resumed the manufacture, preparation, or 
                processing for commercial distribution domestically or 
                for import into the United States of that brand style, 
                notice of such resumption, the date of such resumption, 
                the identity of such brand style (by the common or 
                usual name of the tobacco product category to which it 
                belongs and by any proprietary name), and the other 
                information required by paragraph (1), unless the 
                registrant has previously reported such resumption to 
                the Administrator pursuant to this subparagraph.
                    (D) Any material change in any information 
                previously submitted pursuant to this paragraph or 
                paragraph (1).
    (i) Electronic Registration.--A registration under subsection (b), 
(c), (d), or (e) (including the submission of updated information) 
shall be submitted to the Administrator by electronic means, unless the 
Administrator grants a request for a waiver of such requirement because 
the use of electronic means is not reasonable for the person requesting 
such waiver.

SEC. 110. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act shall be 
effective on the date of enactment of this Act.

TITLE II--RESTRICTIONS ON YOUTH ACCESS TO TOBACCO PRODUCTS AND EXPOSURE 
         OF YOUTH TO TOBACCO PRODUCT MARKETING AND ADVERTISING

SEC. 201. PROHIBITIONS ON YOUTH TARGETING.

    Effective 18 months after the date of enactment of this Act, no 
person shall engage in any of the following activities or practices in 
the advertising, promotion, or marketing of any tobacco product:
            (1) The use, or causing the use, of any cartoon in the 
        advertising, promoting, packaging, or labeling of any tobacco 
        product.
            (2) The use, or causing the use, of any human image in the 
        advertising, promoting, packaging, or labeling of any tobacco 
        product, except for the following:
                    (A) The use, or continued use, in advertising, 
                promoting, marketing, packaging, or labeling of any 
                human image appearing on a tobacco product package 
                before December 31, 2009.
                    (B) The use, or continued use, of a human image in 
                the advertising, promoting, or marketing of a tobacco 
                product, if conducted solely in an adult-only facility 
                or facilities.
                    (C) The use, or continued use, of a human image in 
                a tobacco product communication means directed solely 
                to persons that the tobacco product manufacturer has a 
                good-faith belief are age-verified adults.
            (3) The advertising of tobacco products in any magazine or 
        newspaper intended for distribution to the general public.
            (4) The engaging in any brand name sponsorship in the 
        United States, other than a brand name sponsorship occurring 
        solely in an adult-only facility or facilities.
            (5) The engaging in any brand name sponsorship of any event 
        in the United States in which any paid participants or 
        contestants are youth.
            (6) The sponsoring of any athletic event between opposing 
        teams in any football, basketball, baseball, soccer, or hockey 
        league.
            (7)(A) The securing of a right, by agreement, to name any 
        stadium or arena located within the United States with a brand 
        name; or
            (B) otherwise causing a stadium or arena located within the 
        United States to be named with a brand name.
            (8) The securing of a right by agreement pursuant to which 
        payment is made or other consideration is provided to use a 
        brand name in association with any football, basketball, 
        baseball, soccer, or hockey league, or any team involved in any 
        such league.
            (9) The use of, or causing the use of, by agreement 
        requiring the payment of money or other consideration, a brand 
        name with any nationally recognized or nationally established 
        trade name or brand designation of any non-tobacco item or 
        service, or any nationally recognized or nationally established 
        sports team, entertainment group or individual celebrity for 
        purposes of advertising, except for an agreement between or 
        among persons that enter into such agreement for the sole 
        purpose of avoiding infringement claims.
            (10) The license, express authorization, or otherwise 
        causing of any person to use or advertise within the United 
        States any brand name in a manner that--
                    (A) does not pertain to a tobacco product; or
                    (B) causes that person to use the brand name to 
                advertise, promote, package or label, distribute, or 
                sell any product or service that is not a tobacco 
                product.
            (11) The marketing, distribution, offering, selling, 
        licensing, or authorizing of, or the causing to be marketed, 
        distributed, offered, sold, licensed, or authorized, any 
        apparel or other merchandise bearing a brand name, except--
                    (A) apparel or other merchandise that is used by 
                individuals representing a tobacco product manufacturer 
                within an adult-only facility and that is not 
                distributed, by sale or otherwise, to any member of the 
                general public;
                    (B) apparel or merchandise provided to an adult 
                employee of a tobacco product manufacturer for use by 
                such employee;
                    (C) items or materials used to hold or display 
                tobacco products at retail;
                    (D) items or materials the sole function of which 
                is to advertise tobacco products;
                    (E) written or electronic publications;
                    (F) coupons or other items used by adults solely in 
                connection with the purchase of tobacco products;
                    (G) that the composition, structure, form, or 
                appearance of any tobacco product, package, label, or 
                labeling shall not be affected by the prohibitions of 
                this paragraph; and
                    (H) that no person shall be required to retrieve, 
                collect, or otherwise recover any item or material that 
                was marketed, distributed, offered, sold, licensed, or 
                caused to be marketed, distributed, offered, sold, or 
                licensed by such person;
            (12) The distribution, or causing the distribution, of any 
        free sample domestically, except in an adult-only facility or 
        facilities to individuals who are age-verified adults.
            (13) The making of, or causing to be made, any payment or 
        the payment of, or causing to be paid, any other consideration 
        to any other person to use, display, make reference to, or use 
        as a prop in any performance medium any tobacco product, 
        tobacco product package, advertisement for a tobacco product, 
        or any other item bearing a brand name. For the purposes of 
        this paragraph, the terms ``performance medium'' and 
        ``performance media'' mean any motion picture, television show, 
        theatrical production or other live performance, live or 
        recorded performance of music, commercial film or video, or 
        video game. This paragraph shall not apply to the following:
                    (A) Performance media for which the audience or 
                viewers are within 1 or more adult-only facilities, if 
                such performance media are not audible or visible to 
                persons outside such adult-only facility or facilities.
                    (B) Performance media not intended to be heard or 
                viewed by the general public.
                    (C) Instructional performance media that concern 
                tobacco products and their use, and that are intended 
                to be heard or viewed only by, or provided only to, 
                age-verified adults.
                    (D) Performance media used in tobacco product 
                communications to age-verified adults.
            (14) Engaging in outdoor advertising or transit 
        advertisements of tobacco products within the United States, 
        except for the following:
                    (A) Advertising that is within an adult-only 
                facility.
                    (B) The use of outdoor advertising for purposes of 
                identification of an adult-only facility, to the extent 
                that such outdoor advertising is placed at the site, 
                premises, or location of the adult-only facility.
                    (C) The use of outdoor advertising in identifying a 
                brand name sponsorship at an adult-only facility, if 
                such outdoor advertising--
                            (i) is placed at the site, premises, or 
                        location of the adult-only facility where such 
                        brand name sponsorship will occur no more than 
                        30 days before the start of the initial 
                        sponsored event; and
                            (ii) is removed within 10 days after the 
                        end of the last sponsored event.
            (15) The distribution or sale domestically of any package 
        or other container of cigarettes containing fewer than 20 
        cigarettes.
            (16) The advertising of tobacco products on any broadcast, 
        cable, or satellite transmission to a television or radio 
        receiver, or other medium of electronic communication subject 
        to the jurisdiction of the Federal Communications Commission, 
        except electronic communications--
                    (A) contained on log-in or home pages containing no 
                tobacco product advertising other than brand name 
                identification;
                    (B) in an adult-only facility or facilities;
                    (C) through the Internet or other individual user-
                accessible electronic communication means, including 
                websites accessible using the Internet, if the 
                advertiser takes reasonable action to restrict access 
                to individuals who are adults by--
                            (i) requiring individuals accessing such 
                        electronic communications to be age-verified 
                        adults; and
                            (ii) making good-faith efforts to verify 
                        that such individuals are adults.
            (17) The distribution or sale of tobacco products directly 
        to consumers by mail or courier, unless the person receiving 
        purchase requests for tobacco products takes reasonable action 
        to prevent delivery to individuals who are not adults by--
                    (A) requiring that the addressees of the tobacco 
                products be age-verified adults;
                    (B) making good faith efforts to verify that such 
                addressees are adults; and
                    (C) addressing the tobacco products delivered by 
                mail, courier or common carrier to a physical address 
                and not a post office box.
            (18) The providing of any gift of a non-tobacco product, 
        except matches, in connection with the purchase of a tobacco 
        product.
            (19) The engaging in the sponsorship or promotion, or 
        causing the sponsorship or promotion, of any consumer 
        sweepstakes, contest, drawing, or similar activity resulting in 
        the award of a prize in connection with advertising.
            (20) The offering, promoting, conducting, or authorizing, 
        or causing to be offered, promoted, conducted, or authorized, 
        any consumer sweepstakes, drawing, contest, or other activity 
        resulting in the awarding of a prize, based on redemption of a 
        proof-of-purchase, coupon, or other item awarded as a result of 
        the purchase or use of a tobacco product.
            (21) The making of, or causing to be made, any payment or 
        the payment of, or causing to be paid, any other consideration, 
        to any other person with regard to the display or placement of 
        any cigarettes, or any advertising for cigarettes, in any 
        retail establishment that is not an adult-only facility.

SEC. 202. STATE LAW REGARDING SALE OF TOBACCO PRODUCTS TO INDIVIDUALS 
              UNDER AGE OF 18.

    Section 1926 of the Public Health Service Act (42 U.S.C. 300x-26) 
is amended by adding at the end the following:
    ``(e) Elements of State Distribution Law.--
            ``(1) In general.--Subject to paragraphs (2) and (3), for 
        fiscal year 2010 and each subsequent fiscal year, the Secretary 
        shall reduce, as provided for in subsection (h), the amount of 
        any grant under section 1921 for any State that does not have 
        in effect a law with substantially the following provisions:

```SECTION 1. DISTRIBUTION TO MINORS.

    ```(a) No person shall distribute a tobacco product to an 
individual under 18 years of age or a different minimum age established 
under State law. A person who violates this subsection shall be liable 
for a civil money penalty of not less than $25 nor more than $125 for 
each violation of this subsection.
    ```(b) The employer of an employee who has violated subsection (a) 
twice while in the employ of such employer shall be liable for a civil 
money penalty of $125 for each subsequent violation by such employee.
    ```(c) It shall be a defense to a charge brought under subsection 
(a) that--
            ```(1) the defendant--
                    ```(A) relied upon proof of age that appeared on 
                its face to be valid in accordance with the Federal 
                Tobacco Act of 2009;
                    ```(B) had complied with the requirements of 
                section 5 and, if applicable, section 7; or
                    ```(C) relied upon a commercially available 
                electronic age verification service to confirm that the 
                person was an age-verified adult; or
            ```(2) the individual to whom the tobacco product was 
        distributed was at the time of the distribution used in 
        violation of subsection 8(b).

```SEC. 2. PURCHASE, RECEIPT, OR POSSESSION BY MINORS PROHIBITED.

    ```(a) An individual under 18 years of age or a different minimum 
age established under State law shall not purchase or attempt to 
purchase, receive or attempt to receive, possess or attempt to possess, 
a tobacco product. An individual who violates this subsection shall be 
liable for a civil money penalty of not less than $25 nor more than 
$125 for each such violation, and shall be required to perform not less 
than 4 hours nor more than 10 hours of community service. Upon the 
second or each subsequent violation of this subsection, such individual 
shall be required to perform not less than 8 hours nor more than 20 
hours of community service.
    ```(b) A law enforcement agency, upon determining that an 
individual under 18 years of age or a different minimum age established 
under State law allegedly purchased, received, possessed, or attempted 
to purchase, receive, or possess, a tobacco product in violation of 
subsection (a) shall notify the individual's parent or parents, 
custodian, or guardian as to the nature of the alleged violation if the 
name and address of a parent or parents, guardian, or custodian is 
reasonably ascertainable by the law enforcement agency. The notice 
required by this subsection shall be made not later than 48 hours after 
the individual who allegedly violated subsection (a) is cited by such 
agency for the violation. The notice may be made by any means 
reasonably calculated to give prompt actual notice, including notice in 
person, by telephone, or by first-class mail.
    ```(c) Subsection (a) shall not be construed to prohibit an 
individual under 18 years of age or a different minimum age established 
under State law from possessing a tobacco product during regular 
working hours and in the course of such individual's employment if the 
tobacco product is not possessed for such individual's consumption.

```SEC. 3. OUT-OF-PACKAGE DISTRIBUTION.

    ```It shall be unlawful for any person to distribute cigarettes or 
a smokeless tobacco product other than in an unopened package that 
complies in full with section 108 of the Federal Tobacco Act of 2009. A 
person who distributes a cigarette or a smokeless tobacco product in 
violation of this section shall be liable for a civil money penalty of 
not less than $25 nor more than $125 for each such violation.

```SEC. 4. SIGNAGE.

    ```It shall be unlawful for any person who sells tobacco products 
over-the-counter to fail to post conspicuously on the premises where 
such person sells tobacco products over-the-counter a sign 
communicating that--
            ```(1) the sale of tobacco products to individuals under 18 
        years of age or a different minimum age established under State 
        law is prohibited by law;
            ```(2) the purchase of tobacco products by individuals 
        under 18 years of age or a different minimum age established 
        under State law is prohibited by law; and
            ```(3) proof of age may be demanded before tobacco products 
        are sold.
A person who fails to post a sign that complies fully with this section 
shall be liable for a civil money penalty of not less than $25 nor more 
than $125.

```SEC. 5. NOTIFICATION OF EMPLOYEES.

    ```(a) Not later than 180 days of the effective date of this Act, a 
person engaged in the business of selling tobacco products at retail 
shall implement a program to notify each employee employed by that 
person who sells tobacco products at retail that--
            ```(1) the sale or other distribution of tobacco products 
        to any individual under 18 years of age or a different minimum 
        age established under State law, and the purchase, receipt, or 
        possession of tobacco products in a place open to the public by 
        any individual under 18 years of age or a different minimum age 
        established under State law, is prohibited; and
            ```(2) out-of-package distribution of cigarettes and 
        smokeless tobacco products is prohibited.
Any employer failing to provide the required notice to any employee 
shall be liable for a civil money penalty of not less than $25 nor more 
than $125 for each such violation.
    ```(b) It shall be a defense to a charge that an employer violated 
subsection (a) that the employee acknowledged receipt, either in 
writing or by electronic means, prior to the alleged violation, of a 
statement in substantially the following form: ``I understand that 
State law prohibits the distribution of tobacco products to individuals 
under 18 years of age or a different minimum age established under 
State law and out-of-package distribution of cigarettes and smokeless 
tobacco products, and permits a defense based on evidence that a 
prospective purchaser's proof of age was reasonably relied upon and 
appeared on its face to be valid. I understand that if I sell, give, or 
voluntarily provide a tobacco product to an individual under 18 years 
of age or a different minimum age established under State law, I may be 
found responsible for a civil money penalty of not less than $25 nor 
more than $125 for each violation. I promise to comply with this law''.
    ```(c) If an employer is charged with a violation of subsection (a) 
and the employer uses as a defense to such charge the defense provided 
by subsection (b), the employer shall be deemed to be liable for such 
violation if such employer pays the penalty imposed on the employee 
involved in such violation or in any way reimburses the employee for 
such penalty.

```SEC. 6. SELF-SERVICE DISPLAYS.

    ```(a) It shall be unlawful for any person who sells tobacco 
products over-the-counter at retail to maintain packages of such 
products in any location accessible to customers that is not under the 
control of a cashier or other employee during regular business hours. 
This subsection shall not apply to any adult-only facility.
    ```(b) Any person who violates subsection (a) shall be liable for a 
civil money penalty of not less than $25 nor more than $125 for each 
such violation, except that no person shall be responsible for more 
than one violation per day at any one retail store.

```SEC. 7. DISTRIBUTION BY MAIL OR COURIER.

    ```(a) It shall be unlawful to distribute or sell tobacco products 
directly to consumers by mail or courier, unless the person receiving 
such purchase requests for tobacco products takes reasonable action to 
prevent delivery to individuals who are not adults by--
            ```(1) requiring that addressees of the tobacco products be 
        age-verified adults;
            ```(2) making good faith efforts to verify that such 
        addressees have attained the minimum age for purchase of 
        tobacco products established by the respective States wherein 
        the addresses of the addressees are located; and
            ```(3) addressing the tobacco products delivered by mail or 
        courier to a physical addresses and not to post office boxes.
    ```(b) Any person who violates subsection (a) shall be liable for a 
civil money penalty of not less than $25 nor more than $125 for each 
such violation.

```SEC. 8. RANDOM UNANNOUNCED INSPECTIONS; REPORTING; AND COMPLIANCE.

    ```(a) The State Police, or a local law enforcement authority duly 
designated by the State Police, shall enforce this Act in a manner that 
can reasonably be expected to reduce the extent to which tobacco 
products are distributed to individuals under 18 years of age or a 
different minimum age established under State law and shall conduct 
random, unannounced inspections in accordance with the procedures set 
forth in this Act and in regulations issued under section 1926 of the 
Public Health Service Act (42 U.S.C. 300x-26).
    ```(b) The State may engage an individual under 18 years of age or 
a different minimum age established under State law to test compliance 
with this Act, except that such an individual may be used to test 
compliance with this Act only if the testing is conducted under the 
following conditions:
            ```(1) Prior to the use of any individual under 18 years of 
        age or a different minimum age established under State law in a 
        random, unannounced inspection, written consent shall be 
        obtained from a parent, custodian, or guardian of such 
        individual.
            ```(2) An individual under 18 years of age or a different 
        minimum age established under State law shall act solely under 
        the supervision and direction of the State Police or a local 
        law enforcement authority duly designated by the State Police 
        during a random, unannounced inspection.
            ```(3) An individual under 18 years of age or a different 
        minimum age established under State law used in random, 
        unannounced inspections shall not be used in any such 
        inspection at a store in which such individual is a regular 
        customer.
            ```(4) If an individual under 18 years of age or a 
        different minimum age established under State law participating 
        in random, unannounced inspections is questioned during such an 
        inspection about such individual's age, such individual shall 
        state his or her actual age and shall present a true and 
        correct proof of age if requested at any time during the 
        inspection to present it.
    ```(c) Any person who uses any individual under 18 years of age or 
a different minimum age established under State law, other than as 
permitted by subsection (b), to test compliance with this Act, shall be 
liable for a civil money penalty of not less than $25 nor more than 
$125 for each such violation.
    ```(d) Civil money penalties collected for violations of this Act 
and fees collected under section 9 shall be used only to defray the 
costs of administration and enforcement of this Act.

```SEC. 9. LICENSURE.

    ```(a) Each person engaged in the over-the-counter distribution at 
retail of tobacco products shall hold a license issued under this 
section. A separate license shall be required for each place of 
business where tobacco products are distributed at retail. A license 
issued under this section is not assignable and is valid only for the 
person in whose name it is issued and for the place of business 
designated in the license.
    ```(b) The annual license fee is $25 for each place of business 
where tobacco products are distributed at retail.
    ```(c) Every application for a license, including renewal of a 
license, under this section shall be made upon a form provided by the 
Tobacco Regulatory Agency, and shall set forth the name under which the 
applicant transacts or intends to transact business, the location of 
the place of business for which the license is to be issued, the street 
address to which all notices relevant to the license are to be sent (in 
this Act referred to as ``notice address''), and any other identifying 
information that the Tobacco Regulatory Agency may require.
    ```(d) The Tobacco Regulatory Agency shall issue or renew a license 
or deny an application for a license or the renewal of a license within 
30 days of receiving a properly completed application and the license 
fee. The Tobacco Regulatory Agency shall provide notice to an applicant 
of action on an application denying the issuance of a license or 
refusing to renew a license.
    ```(e) Every license issued by the Tobacco Regulatory Agency 
pursuant to this section shall be valid for 1 year from the date of 
issuance and shall be renewed upon application except as otherwise 
provided in this Act.
    ```(f) Upon notification of a change of address for a place of 
business for which a license has been issued, a license shall be 
reissued for the new address without the filing of a new application.
    ```(g) The Tobacco Regulatory Agency shall notify every person in 
the State who is engaged in the distribution at retail of tobacco 
products of the license requirements of this section and of the date by 
which such person should have obtained a license.
    ```(h)(1) Except as provided in paragraph (2), any person who 
engages in the distribution at retail of tobacco products without a 
license required by this section shall be liable for a civil money 
penalty in an amount equal to--
            ```(A) 2 times the applicable license fee; and
            ```(B) $50 for each day that such distribution continues 
        without a license.
    ```(2) Any person who engages in the distribution at retail of 
tobacco products after a license issued under this section has been 
suspended or revoked is liable for a civil money penalty of $100 per 
day for each day on which such distribution continues after the date 
such person received notice of such suspension or revocation.
    ```(i) No person shall engage in the distribution at retail of 
tobacco products on or after 180 days after the date of enactment this 
Act unless such person is authorized to do so by a license issued 
pursuant to this section or is an employee or agent of a person that 
has been issued such a license.

```SEC. 10. SUSPENSION, REVOCATION, DENIAL, AND NONRENEWAL OF LICENSES.

    ```(a) Upon a finding that a licensee has been determined by a 
court of competent jurisdiction to have violated this Act during the 
license term, the State shall notify the licensee in writing, served 
personally or by registered mail at the notice address, that any 
subsequent violation of this Act at the same place of business may 
result in an administrative action to suspend the license for a period 
determined by the Tobacco Regulatory Agency.
    ```(b) Upon finding that a further violation by this Act has 
occurred involving the same place of business for which the license was 
issued and the licensee has been served notice once under subsection 
(a), the Tobacco Regulatory Agency may initiate an administrative 
action to suspend the license for a period to be determined by the 
Tobacco Regulatory Agency but not to exceed 6 months. If an 
administrative action to suspend a license is initiated, the Tobacco 
Regulatory Agency shall immediately notify the licensee in writing at 
the notice address of the initiation of the action and the reasons 
therefor and permit the licensee an opportunity, at least 30 days after 
written notice is served personally or by registered mail upon the 
licensee, to show why suspension of the license would be unwarranted or 
unjust.
    ```(c) The Tobacco Regulatory Agency may initiate an administrative 
action to revoke a license that previously has been suspended under 
subsection (b) if, after the suspension and during the 1-year period 
for which the license was issued, the licensee committed a further 
violation of this Act, at the same place of business for which the 
license was issued. If an administrative action to revoke a license is 
initiated, the Tobacco Regulatory Agency shall immediately notify the 
licensee in writing at the notice address of the initiation of the 
action and the reasons therefore and permit the licensee an 
opportunity, at least 30 days after written notice is served personally 
or by registered mail upon the licensee, to show why revocation of the 
license would be unwarranted or unjust.
    ```(d) A person whose license has been suspended or revoked with 
respect to a place of business pursuant to this section shall pay a fee 
of $50 for the renewal or reissuance of the license at that same place 
of business, in addition to any applicable annual license fees.
    ```(e) Revocation of a license under subsection (c) with respect to 
a place of business shall not be grounds to deny an application by any 
person for a new license with respect to such place of business for 
more than 12 months subsequent to the date of such revocation. 
Revocation or suspension of a license with respect to a particular 
place of business shall not be grounds to deny an application for a new 
license, to refuse to renew a license, or to revoke or suspend an 
existing license at any other place of business.
    ```(f) A licensee may seek judicial review of an action of the 
Tobacco Regulatory Agency suspending, revoking, denying, or refusing to 
renew a license under this section by filing a complaint in a court of 
competent jurisdiction. Any such complaint shall be filed within 30 
days after the date on which notice of the action is received by the 
licensee. The court shall review the evidence de novo.
    ```(g) The State shall not report any action suspending, revoking, 
denying, or refusing to renew a license under this section to the 
Secretary of Health and Human Services, unless the opportunity for 
judicial review of the action pursuant to subsection (f), if any, has 
been exhausted or the time for seeking such judicial review has 
expired.

```SEC. 11. NO PRIVATE RIGHT OF ACTION.

    ```Nothing in this Act shall be construed to create a right of 
action by any private person for any violation of any provision of this 
Act.

```SEC. 12. JURISDICTION AND VENUE.

    ```Any action alleging a violation of this Act may be brought only 
in a court of general jurisdiction in the city or county where the 
violation is alleged to have occurred.

```SEC. 13. REPORT.

    ```The Tobacco Regulatory Agency shall prepare for submission 
annually to the Secretary of Health and Human Services the report 
required by section 1926 of the Public Health Service Act (42 U.S.C. 
300x-26).

```SEC. 14. DEFINITIONS.

    ```For purposes of this Act:
            ```(1) The term ``adult-only facility'' shall have the 
        meaning given such term in section 3 of the Federal Tobacco Act 
        of 2009.
            ```(2) The term ``age-verified adult'' shall have the 
        meaning given such term in section 3 of the Federal Tobacco Act 
        of 2009.
            ```(3) The term ``package'' means a pack, box, or container 
        of any kind or, if not a container, any wrapping (including 
        cellophane), in which a tobacco product or products are offered 
        for sale, sold, or otherwise distributed to consumers, and 
        includes cartons in which packages of tobacco products are 
        contained for sale, offer for sale, or otherwise distributed to 
        consumers.
            ```(4) The term ``proof of age'' shall have the meaning 
        given such term in section 3 of the Federal Tobacco Act of 
        2009.
            ```(5) The term ``sample'' shall have the meaning given 
        such term in section 3 of the Federal Tobacco Act of 2009.
            ```(6) The term ``tobacco product'' shall have the meaning 
        given such term in section 3 of the Federal Tobacco Act of 
        2009.
            ```(7) The term ``under the control'' means within the 
        reach of the cashier or other employee, or otherwise protected 
        by security, surveillance, or detection methods, including 
        electronic scanners, such that the tobacco product cannot be 
        purchased except in a face-to-face transaction.'.
            ``(2) Application to certain states.--In the case of a 
        State whose legislature does not convene a regular session in 
        fiscal year 2009, and in the case of a State whose legislature 
        does not convene a regular session in fiscal year 2010, the 
        requirement described in paragraph (1) as a condition of a 
        receipt of a grant under section 1921 shall apply only for 
        fiscal year 2011 and subsequent fiscal years.
            ``(3) Limitation.--Paragraph (1) shall not affect any State 
        or local law that--
                    ``(A) was in effect on the date of enactment of the 
                Federal Tobacco Act of 2009; and
                    ``(B) covers the same subject matter as the law 
                described in paragraph (1).
        Any State law that meets the conditions of this paragraph shall 
        also be deemed to meet the requirement described in paragraph 
        (1) as a condition of a receipt of a grant under section 1921, 
        if such State law is at least as stringent as the law described 
        in paragraph (1).
    ``(f) Enforcing of State Law.--
            ``(1) In general.--For the first applicable fiscal year and 
        for each subsequent fiscal year, a funding agreement for a 
        grant under section 1921 is a funding agreement under which the 
        State involved will enforce the law described in subsection 
        (e)(1) in a manner that can reasonably be expected to reduce 

        the extent to which tobacco products are available to 
        individuals under the age of 18 or a different minimum age 
        established under State law for the purchase of tobacco 
        products.
            ``(2) Requirements.--For the first applicable fiscal year 
        and for each subsequent fiscal year, a funding agreement for a 
        grant under 1921 is a funding agreement under which the State 
        involved will--
                    ``(A) conduct random, unannounced inspections to 
                ensure compliance with the law described in subsection 
                (e)(1); and
                    ``(B) annually submit to the Secretary a report 
                describing--
                            ``(i) the activities carried out by the 
                        State to enforce such law during the fiscal 
                        year preceding the fiscal year for which the 
                        State is seeking the grant;
                            ``(ii) the extent of success the State has 
                        achieved in reducing the availability of 
                        tobacco products to individuals under 18 years 
                        of age or a different minimum age established 
                        under State law, including the results of the 
                        inspections conducted under subparagraph (A); 
                        and
                            ``(iii) the strategies to be utilized by 
                        the State for enforcing such law during the 
                        fiscal year for which the grant is sought.
    ``(g) Funding Sources.--The law specified in subsection (e)(1) may 
be administered and enforced by a State using--
            ``(1) any amounts made available to the State through a 
        grant under section 1921;
            ``(2) any amounts made available to the State under section 
        1901;
            ``(3) any fees collected for licenses issued pursuant to 
        the law described in subsection (e)(1);
            ``(4) any fines or penalties assessed for violations of the 
        law specified in subsection (e)(1); or
            ``(5) any other funding source that the legislature of the 
        State may prescribe by law.
    ``(h) Compliance Determinations.--Prior to making a grant under 
section 1921 to a State for the first applicable fiscal year or any 
subsequent fiscal year, the Secretary shall make a determination of 
whether the State has maintained compliance with subsections (e) and 
(f). If, after notice to the State and an opportunity for a hearing, 
the Secretary determines that the State is not in compliance with such 
subsections, the Secretary shall reduce the amount of the allotment 
under section 1921 for the State for the fiscal year involved by an 
amount equal to--
            ``(1) in the case of the first applicable fiscal year, 10 
        percent of the amount determined under section 1933 for the 
        State for the fiscal year;
            ``(2) in the case of the first fiscal year following such 
        applicable fiscal year, 20 percent of the amount determined 
        under section 1933 for the State for the fiscal year;
            ``(3) in the case of the second such fiscal year, 30 
        percent of the amount determined under section 1933 for the 
        State for the fiscal year; and
            ``(4) in the case of the third such fiscal year or any 
        subsequent fiscal year, 40 percent of the amount determined 
        under section 1933 for the State for the fiscal year.
The Secretary may not grant to any State a waiver of the terms and 
requirements of this subsection or subsection (e) or (f).
    ``(i) Definition.--For the purposes of subsections (e) through (h), 
the term `first applicable fiscal year' means--
            ``(1) fiscal year 2010, in the case of any State described 
        in subsection (e)(2); and
            ``(2) fiscal year 2009, in the case of any other State.
    ``(j) References.--For purposes of subsections (e) through (h), 
references to section 1921 shall include any successor grant programs 
to the programs established under section 1921.
    ``(k) Indians.--
            ``(1) In general.--As required by paragraph (2), and 
        subject to paragraph (5), an Indian tribe shall satisfy the 
        requirements of subsection (e)(1) by enacting a law or 
        ordinance with substantially the same provisions as the law 
        described in subsection (e)(1).
            ``(2) Compliance.--An Indian tribe shall comply with 
        subsection (e)(1) within 180 days after the Administrator 
        finds, in accordance with this paragraph, that--
                    ``(A) the Indian tribe has a governing body 
                carrying out substantial governmental powers and 
                duties;
                    ``(B) the functions to be exercised by the Indian 
                tribe under this subsection pertain to activities on 
                trust land within the jurisdiction of the tribe; and
                    ``(C) the Indian tribe is reasonably expected to be 
                capable of carrying out the functions required under 
                this section.
        Not later than 2 years of the date of enactment of the Federal 
        Tobacco Act of 2009, with respect to each Indian tribe in the 
        United States, the Administrator shall make the findings 
        contemplated by this paragraph or determine that such findings 
        cannot be made, in accordance with the procedures specified in 
        paragraph (5).
            ``(3) Regulations.--With respect to an Indian tribe that is 
        subject to subsection (e)(1), the Administrator shall 
        promulgate regulations that--
                    ``(A) provide whether and to what extent if any, 
                the law described in subsection (e)(1) may be modified 
                as adopted by Indian tribes; and
                    ``(B) ensure, to the extent possible, that each 
                Indian tribe's retailer licensing program under 
                subsection (e)(1) is no less stringent than the program 
                of the State or States in which the Indian tribe is 
                located.
            ``(4) Noncompliance.--If with respect to any Indian tribe 
        the Administrator determines that compliance with the 
        requirements of subsection (e)(1) is inappropriate or 
        administratively infeasible, the Administrator shall specify 
        other means for the Indian tribe to achieve the purposes of the 
        law described in subsection (e)(1) with respect to persons who 
        engage in the distribution at retail of tobacco products on 
        tribal lands.
            ``(5) Procedures.--The findings and regulations promulgated 
        under paragraphs (2) and (3) shall be promulgated in 
        conformance with section 553 of title 5, United States Code, 
        and shall comply with the following provisions:
                    ``(A) In making findings as provided in paragraph 
                (2), and in drafting and promulgating regulations as 
                provided in paragraph (3) (including drafting and 
                promulgating any revised regulations), the 
                Administrator shall confer with, and allow for active 
                participation by, representatives and members of Indian 
                tribes, and tribal organizations.
                    ``(B) In carrying out rulemaking processes under 
                this subsection, the Administrator shall follow the 
                guidance of subchapter III of chapter 5 of title 5, 
                United States Code, commonly known as the Negotiated 
                Rulemaking Act of 1990.
                    ``(C) The tribal participants in the negotiation 
                process referred to in subparagraph (B) shall be 
                nominated by and shall represent the groups described 
                in this subsection and shall include tribal 
                representatives from all geographic regions.
                    ``(D) The negotiations conducted under this 
                paragraph shall be conducted in a timely manner.
                    ``(E) If the Administrator determines that an 
                extension of the deadlines under subsection (k)(1) is 
                appropriate, the Secretary may submit proposed 
                legislation to Congress for the extension of such 
                deadlines.
            ``(6) Limitation.--This subsection shall not affect any law 
        or ordinance that--
                    ``(A) was in effect on tribal lands on Federal 
                Tobacco Act of 2009; and
                    ``(B) covers the same subject matter as the law 
                described in subsection (e)(1).
        Any law or ordinance that meets the conditions of this 
        paragraph shall also be deemed to meet the requirement 
        described in subsection (k)(1), if such law or ordinance is at 
        least as stringent as the law described in subsection (e)(1).
            ``(7) Definitions.--In this subsection:
                    ``(A) Administrator.--The term `Administrator' 
                means the Administrator of the Tobacco Regulatory 
                Agency.
                    ``(B) Indian tribe.--The term `Indian tribe' has 
                the meaning given such term in section 4(e) of the 
                Indian Self Determination and Education Assistance Act 
                (25 U.S.C. 450b(e)).
                    ``(C) Tribal lands.--The term `tribal lands' means 
                all lands within the exterior boundaries of any Indian 
                reservation, all lands the title to which is held by 
                the United States in trust for an Indian tribe, or 
                lands the title to which is held by an Indian tribe 
                subject to a restriction by the United States against 
                alienation, and all dependent Indian communities.
                    ``(D) Tribal organization.--The term `tribal 
                organization' has the same meaning given such term in 
                section 4(l) of the Indian Self Determination and 
                Education Assistance Act (25 U.S.C. 450b(l)).''.

SEC. 203. RESTRICTIONS ON DESCRIPTORS USED IN MARKETING OF CIGARETTES.

    (a) In General.--Except as provided in subsection (b), no person 
shall use, with respect to any cigarette brand style commercially 
distributed domestically, on the portion of the package of such 
cigarette brand style that customarily is visible to consumers before 
purchase, or in advertising of such cigarette brand style that is not 
located in an adult-only facility or is not addressed solely to age-
verified adults any of the following as a descriptor of any cigarette 
brand style:
            (1) The name of any candy or fruit.
            (2) The word ``candy'', ``citrus'', ``cream'', ``fruit'', 
        ``sugar'', ``sweet'', ``tangy'', or ``tart''.
            (3) Any extension or variation of any of the words 
        ``candy'', ``citrus'', ``cream'', ``fruit'', ``sugar'', 
        ``sweet'', ``tangy'', or ``tart'', including ``creamy'', or 
        ``fruity.''
    (b) Limitation.--Subsection (a) shall not apply to the use of the 
following words or to any extension or variation of any such words: 
``clove'' and ``menthol''.
    (c) Scented Materials.--No person shall use, in the advertising or 
labeling of any cigarette commercially distributed domestically, any 
scented materials, except in an adult-only facility.
    (d) Definitions.--In this section:
            (1) Candy.--The term ``candy'' means a confection made from 
        sugar or sugar substitute, including any confection identified 
        generically or by brand, and shall include the words ``cacao'', 
        ``chocolate'', ``cinnamon'', ``cocoa'', ``honey'', 
        ``licorice'', ``maple'', ``mocha'', and ``vanilla''.
            (2) Fruit.--The term ``fruit'' means any fruit identified 
        by generic name, type, or variety, including ``apple'', 
        ``banana'', ``cherry'', and ``orange''. Such term does not 
        include words that identify seeds, nuts or peppers, or types or 
        varieties thereof or words that are extensions or variations of 
        such words.

    TITLE III--REDUCED-EXPOSURE AND REDUCED-RISK CLAIMS FOR TOBACCO 
          PRODUCTS, AND RANKING OF TOBACCO PRODUCT CATEGORIES

SEC. 301. PROHIBITION OF UNAPPROVED REDUCED-EXPOSURE AND REDUCED-RISK 
              CLAIMS.

    (a) Prohibition of Unapproved Reduced-Exposure and Reduced-Risk 
Claims.--No person shall make, or cause to be made, in any tobacco 
product labeling or advertising, a statement or other representation 
regarding a tobacco product that is likely to be received and 
understood by a significant number of objective, reasonable consumers 
as making either a reduced-exposure claim or a reduced-risk claim, 
unless an application regarding such claim with respect to such tobacco 
product has been approved in accordance with this title and has not 
been withdrawn in accordance with this title. Nothing in this Act shall 
be construed to restrict--
            (1) the full exchange of scientific information concerning 
        a tobacco product, including the dissemination of scientific 
        findings in scientific and lay media;
            (2) communications with employees, contractors, or 
        suppliers;
            (3) communications to a governmental entity, body, 
        official, or employee;
            (4) communications in, or in connection with, litigation or 
        arbitration; or
            (5) communications to securities holders.
No liability under State law shall be imposed on the basis, wholly or 
in part, of any statement or representation making a reduced-exposure 
claim or a reduced-risk claim in a scientific or lay medium of 
communication (other than advertising in such medium) or otherwise 
within the scope of paragraphs (1) through (5).
    (b) Tobacco Products With No Reduced-Exposure or Reduced-Risk Claim 
Unaffected.--Nothing in this section shall be construed to prevent any 
person from introducing into interstate commerce any tobacco product 
the labeling and advertising of which do not make any statement or 
other representation prohibited by subsection (a).
    (c) Nicotine-Replacement Therapies.--A product that is intended to 
be used as part of a nicotine replacement therapy in the treatment of 
tobacco dependence, or as part of a tobacco product cessation program, 
shall not be considered to be either--
            (1) a tobacco product for which a reduced-exposure claim 
        might be made; or
            (2) a tobacco product for which a reduced-risk claim might 
        be made.

SEC. 302. APPLICATIONS FOR APPROVAL OF REDUCED-EXPOSURE AND REDUCED-
              RISK CLAIMS.

    A person may submit to the Administrator an application for 
approval of a reduced-exposure claim or a reduced-risk claim for a 
tobacco product as compared to 1 or more other reference products 
either within the tobacco product category that includes the subject 
tobacco product or in a tobacco product category that does not include 
the subject tobacco product. Such an application shall contain the 
following:
            (1) A complete description, including the formulation, 
        construction, and a full list of the components, of the tobacco 
        product for which the proposed reduced-exposure claim or 
        reduced-risk claim might be made.
            (2) The proposed reduced-exposure or reduced-risk claim or 
        claims for that tobacco product.
            (3) Full reports of investigations of the subject tobacco 
        product, as compared to 1 or more other tobacco products, with 
        respect to--
                    (A) the chemical compositions of the tobacco 
                products (or of the smoke of the tobacco product if the 
                subject tobacco product is intended for smoking);
                    (B) the toxicological and any other biological 
                effects of the tobacco products (or of the smoke of the 
                tobacco product if the subject tobacco product is 
                intended for smoking) in laboratory test systems, 
                animals, and humans; and
                    (C) human behavior in the use of the tobacco 
                products; and
            (4) Such samples of the tobacco product as the 
        Administrator may request.

SEC. 303. STANDARDS FOR APPROVAL OF APPLICATIONS FOR REDUCED-EXPOSURE 
              OR REDUCED-RISK CLAIMS.

    (a) Standards for Approval of Reduced-Exposure Claims.--The 
Administrator shall approve an application submitted under section 302 
for a reduced-exposure claim, as originally submitted or as modified, 
if the Administrator finds each of the following:
            (1) That the subject tobacco product (or the smoke from the 
        subject tobacco product, if the subject tobacco product is 
        intended for smoking, when evaluated under not more than 2 
        machine-smoking regimens), yields a reduced amount of 1 or more 
        toxicants when compared to an appropriate reference tobacco 
        product or products.
            (2) That the subject tobacco product, when evaluated under 
        conditions of actual use by tobacco-product users, presents a 
        reduced exposure to 1 or more toxicants when compared to an 
        appropriate reference tobacco product or products, as 
        demonstrated by--
                    (A) data on smoking behavior or other behavior in 
                the use of the tobacco product, as applicable, by users 
                of the tobacco product;
                    (B) data showing a statistically significant 
                reduction of at least 1 toxicant biomarker, or other 
                scientifically validated indicator of toxicant 
                exposure; and
                    (C) data showing either--
                            (i) no statistically significant increase 
                        in exposure to any toxicant or in any biomarker 
                        of toxicant exposure; or
                            (ii) that any statistically significant 
                        increase in exposure to any toxicant or in any 
                        toxicant biomarker of exposure does not pose a 
                        significant risk of increasing morbidity or 
                        mortality of users of the tobacco product.
            (3) That there is a sufficiently persuasive scientific 
        rationale to justify a reasonable expectation, among qualified 
        experts, that the reduction in exposure to 1 or more toxicants 
        would result in a meaningful reduction of morbidity or 
        mortality, as supported by--
                    (A) biologically meaningful quantitative risk 
                assessment data;
                    (B) biologically meaningful pre-clinical toxicology 
                data; or
                    (C) biologically meaningful data from short-term 
                studies in users of tobacco products.
            (4) That there is a sufficiently persuasive scientific 
        rationale to justify a reasonable expectation, among qualified 
        experts, that use of the subject tobacco product by tobacco-
        product users would not result in a statistically significant 
        increase in biological activity when compared to an appropriate 
        reference tobacco product or products, as supported by--
                    (A) biologically meaningful quantitative risk 
                assessment data;
                    (B) biologically meaningful pre-clinical toxicology 
                data; or
                    (C) biologically meaningful data from short-term 
                studies in users of tobacco products.
    (b) Standards for Approval of Reduced-Risk Claims.--The 
Administrator shall approve an application submitted under section 302 
for a reduced-risk claim, as originally submitted or as modified, if 
the Administrator makes each of the findings required by paragraphs (1) 
through (4) of subsection (a) and finds that an epidemiologic study or 
other human studies lead to significant scientific agreement that--
            (1)(A) the totality of available scientific evidence 
        warrants the conclusion that the subject tobacco product, when 
        compared to an appropriate reference tobacco product or 
        products, provides a meaningful reduction of 1 or more chronic 
        diseases or serious adverse health conditions associated with 
        tobacco use; or
            (B) the totality of the available scientific evidence 
        shows--
                    (i) that actual use of the subject tobacco product 
                by users of tobacco products, as compared to actual use 
                of an appropriate reference tobacco product or products 
                by users of tobacco products, results in an altered 
                intake of an appropriately identified and measured 
                substance; and
                    (ii) that the change in intake from the use of the 
                subject tobacco product results in a meaningful 
                reduction in a valid measure of chronic disease or 
                serious adverse health condition associated with 
                tobacco use; and
            (2) the validity of the anticipated reduction in 1 or more 
        tobacco-related diseases or adverse health conditions is not 
        likely to be reversed by new and evolving science.

SEC. 304. GENERAL PROVISIONS.

    (a) Confidentiality of Applications.--The Administrator shall treat 
the content of all applications submitted under section 302 as 
confidential.
    (b) Referral to Advisory Committee.--The Administrator may refer an 
application submitted under section 302 to an Advisory Committee having 
expertise in 1 or more of the fields of biological science, medicine, 
statistics, or other discipline relevant to the review of the 
application.
    (c) Action on an Application.--
            (1) In general.--Not later than 180 days after the receipt 
        of an application under section 302, or such additional period 
        as may be agreed upon by the Administrator and the applicant, 
        after consultation with appropriate technical experts of the 
        Food and Drug Administration, the Federal Trade Commission, and 
        the Centers for Disease Control and Prevention, the 
        Administrator shall--
                    (A) approve the application as initially submitted 
                or as modified; or
                    (B) refuse to approve the application as initially 
                submitted or as modified, provide a detailed written 
                statement of the reasons for such refusal, and give the 
                applicant notice of an opportunity for a hearing on the 
                record before the Administrator on the question whether 
                such application is approvable.
            (2) Hearing on disapproval.--If an applicant accepts the 
        opportunity for a hearing under paragraph (1)(B) by written 
        request submitted not later than 30 days after notice of such 
        opportunity is received by the applicant, such hearing shall 
        commence not later than 90 days after the expiration of such 
        30-day period unless the Administrator and the applicant 
        otherwise agree. Any such hearing shall thereafter be conducted 
        on an expedited basis, and the Administrator's order thereon 
        shall be issued not later than 90 days after the date fixed by 
        the Administrator for the filing of final briefs or for the 
        final hearing.
    (d) Post-Market Surveillance and Studies.--The Administrator shall 
require that an applicant under this title whose application has been 
approved conduct post-market surveillance and studies of the tobacco 
product that is the subject of the approved application, unless the 
Administrator finds that the information likely to result from such 
surveillance or studies is not likely to be useful for the protection 
of the public health.
    (e) Withdrawal of Approval.--The Administrator, after due notice 
and an opportunity for a hearing on the record before the 
Administrator, shall withdraw the approval of an application under this 
title if the Administrator determines that--
            (1) new evidence not contained in such application or not 
        available to the Administrator until after such application was 
        approved, or evidence from tests by new methods, or tests by 
        methods not deemed reasonably applicable when such application 
        was approved, evaluated together with the evidence available to 
        the Administrator when the application was approved, 
        demonstrates that there is a lack of adequate support for the 
        findings necessary for the approval of the application;
            (2) the applicant knowingly or recklessly failed to include 
        material information in the application, or the application 
        included any untrue statement of material fact by the 
        applicant; or
            (3) the applicant failed to conduct, or to submit reports 
        on, post-market surveillance or studies as required under this 
        section.
    (f) Judicial Review.--
            (1) In general.--An applicant may appeal an order of the 
        Administrator refusing or withdrawing approval of an 
        application under this title in accordance with this 
        subsection.
            (2) Filing.--An appeal under this subsection shall be make 
        by filing in the United States court of appeals for the circuit 
        wherein the applicant resides or wherein the principal place of 
        business of such applicant is located, or in the United States 
        Court of Appeals for the District of Columbia Circuit, not 
        later than 60 days after the date on which such order was 
        entered, a written petition seeking that the order of the 
        Administrator be set aside. A copy of such petition shall be 
        transmitted forthwith by the clerk of the court to the 
        Administrator, or any officer designated by the Administrator 
        for that purpose, and thereupon the Administrator shall certify 
        and file in the court the record upon which the order 
        complained of was entered, as provided in section 2112 of title 
        28, United States Code.
            (3) Jurisdiction.--Upon the filing of a petition under 
        paragraph (2), the court involved shall have exclusive 
        jurisdiction to affirm or set aside the order that is the 
        subject of the petition, except that until the filing of the 
        record the Administrator may modify or set aside the order that 
        is being appealed.
            (4) Administrative provisions.--No objection to the order 
        of the Administrator shall be considered by the court under 
        this subsection unless such objection shall have been urged 
        before the Administrator or unless there were reasonable 
        grounds for failure so to do. The findings of the Administrator 
        as to the facts, if supported by substantial evidence, shall be 
        conclusive. If any person shall apply to the court for leave to 
        adduce additional evidence, and shall show to the satisfaction 
        of the court that such additional evidence is material and that 
        there were reasonable grounds for failure to adduce such 
        evidence in the proceeding before the Administrator, the court 
        may order such additional evidence to be taken before the 
        Administrator and to be adduced upon the hearing in such manner 
        and upon such terms and conditions as to the court may seem 
        proper. The Administrator may modify his or her findings as to 
        the facts by reason of the additional evidence so taken, and 
        the Administrator shall file with the court such modified 
        findings which, if supported by substantial evidence, shall be 
        conclusive, and the Administrator's recommendation, if any, for 
        the setting aside of the original order.
            (5) Judgment.--The judgment of the court affirming or 
        setting aside any order of the Administrator under this 
        subsection shall be final, subject to review by the Supreme 
        Court of the United States upon certiorari or certification as 
        provided for in section 1254 of title 28, United States Code.
            (6) Limitation.--The commencement of proceedings under this 
        subsection shall not, unless specifically ordered by the court 
        to the contrary, operate as a stay of the Administrator's 
        order.
    (g) Regulations.--Not later than 24 months after the effective date 
of this Act, the Administrator shall promulgate regulations governing, 
among other things--
            (1) the content of an application under section 302;
            (2) the procedures for amending or supplementing such an 
        application;
            (3) the procedures for the Administrator to approve, 
        approve with modifications, or refuse to approve applications 
        submitted under section 302;
            (4) the design of, conduct of, recordkeeping on, and 
        reporting on post-market surveillance and studies under this 
        section; and
            (5) post-approval reporting by holders of approved 
        applications.
    (h) Limitation.--Nothing in this Act shall be construed to require 
a tobacco product manufacturer to investigate, evaluate, develop, or 
pursue the marketing of any tobacco product for which a reduced-
exposure claim or a reduced-risk claim might be made. Except as 
otherwise provided in this section, nothing in this Act shall be 
construed to require a tobacco product manufacturer to supply any 
information, data, or technology to the Administrator regarding the 
development or properties of any tobacco product for which a reduced-
exposure claim or reduced-risk claim might be made.

SEC. 305. ESTABLISHMENT OF RANKINGS.

    (a) Standards and Procedures for Rankings.--Not later than 24 
months after the effective date of this Act, the Administrator shall, 
by regulation and after consultation with an Advisory Committee 
established for such purpose, establish the standards and procedures 
for promulgating rankings, comprehensible to consumers of tobacco 
products, of the following categories of tobacco products and nicotine-
containing products on the basis of the relative risks of serious or 
chronic tobacco-related diseases and adverse health conditions those 
categories of tobacco products and nicotine-containing products 
respectively present:
            (1) Cigarettes.
            (2) Loose tobacco for roll-your-own tobacco products.
            (3) Little cigars.
            (4) Cigars.
            (5) Pipe tobacco.
            (6) Moist snuff.
            (7) Dry snuff.
            (8) Chewing tobacco.
            (9) Other forms of tobacco products, including pelletized 
        tobacco and compressed tobacco, treated collectively as a 
        single category.
            (10) Other nicotine-containing products, treated 
        collectively as a single category.
The Administrator shall not have authority or discretion to establish a 
relative-risk ranking of any category or subcategory of tobacco 
products or any category or subcategory of nicotine-containing products 
other than the categories specified in paragraphs (1) through (10).
    (b) Considerations in Promulgating Regulations.--In promulgating 
regulations under this section, the Administrator--
            (1) shall take into account relevant epidemiologic studies 
        and other relevant competent and reliable scientific evidence; 
        and
            (2) shall, in assessing the risks of serious or chronic 
        tobacco-related diseases and adverse health conditions 
        presented by a particular category, consider the range of 
        tobacco products or nicotine-containing products within the 
        category, and give appropriate weight to the market shares of 
        the respective products in the category.
    (c) Promulgation of Rankings of Categories.--Once the initial 
regulations required by subsection (a) are in effect, the Administrator 
shall promptly, by order, after notice and an opportunity for comment, 
promulgate to the general public rankings of the categories of tobacco 
products and nicotine-containing products in accordance with such 
regulations. The Administrator shall promulgate the initial rankings of 
those categories of tobacco products and nicotine-containing products 
to the general public not later than January 1, 2011. Thereafter, on an 
annual basis, the Administrator shall, by order, promulgate to the 
general public updated rankings that--
            (1) are in accordance with such regulations; and
            (2) reflect the scientific evidence available at the time 
        of promulgation.
The Administrator shall open and maintain an ongoing public docket for 
receipt of data and other information submitted by any person with 
respect to such annual promulgation of rankings.

SEC. 306. COMPULSORY LICENSING.

    (a) Grant of License.--A person that owns intellectual property 
rights to any technology that is the basis for the approval of a 
reduced-risk claim for a brand style of cigarettes under section 304(c) 
shall, to the fullest extent of such rights, license to any licensee 
any and all such rights to the technology that are needed to make, use, 
and sell in the United States cigarettes incorporating such technology, 
if the licensee--
            (1) is incorporated within the United States;
            (2) requests such a license; and
            (3) agrees to commercially reasonable terms, including 
        payment of a commercially reasonable fee, which fee shall take 
        into account the costs of development and testing, as well as 
        the value, of any associated intellectual property rights or 
        protection.
    (b) Binding Arbitration.--The parties shall submit to binding 
arbitration any dispute regarding the terms of a license provided under 
subsection (a).
    (c) Limitation on License.--This section shall not apply to any 
technology that is not, in whole or in part, necessary to the approval 
of a reduced-risk claim for a brand style of cigarettes under section 
304(c).

SEC. 307. MOIST SNUFF WARNINGS.

    Not later than 24 months after the effective date of this Act, the 
Administrator, after consultation with an Advisory Committee, shall 
review the warning labels required to appear on packages of moist snuff 
products under section 3 of the Comprehensive Smokeless Tobacco Health 
Education Act of 1986 (15 U.S.C. 4402) in light of current population-
based science, and shall make a recommendation to the Secretary and 
Congress as to whether the contents of the warning labels are accurate 
and are supported by current scientific data and whether the labels 
convey to users of tobacco products information that is truthful and 
not misleading, and that assists users of tobacco products in comparing 
the health risks presented by moist snuff products with the health 
risks presented by cigarettes and other types of tobacco products.

     TITLE IV--DISCLOSURES TO THE AGENCY REGARDING TOBACCO PRODUCTS

SEC. 401. CONFIDENTIAL DISCLOSURES TO THE AGENCY.

    (a) Annual Reports by Manufacturers.--Not later than September 1, 
2009, and each September 1 thereafter, each tobacco product 
manufacturer shall submit to the Administrator, as to each brand style 
it manufactures for commercial distribution domestically, a list of the 
ingredients added to tobacco in the manufacture of that brand style, 
without regard to the quantity used, and including, separately, each 
spice, each natural or artificial flavoring, and each preservative used 
in the brand style. In each such list, each ingredient shall be listed 
by its chemical name and chemical abstract service registry number, if 
available, or, if not available, by its common or usual name. The 
ingredients shall be listed in descending order of predominance by 
weight, measure, or numerical count.
    (b) Evaluation by the Administrator.--
            (1) In general.--At such times as the Administrator 
        considers appropriate, the Administrator shall request that 
        technical experts of the Food and Drug Administration and the 
        Centers for Disease Control and Prevention review and comment 
        on the information provided under subsection (a), with respect 
        to--
                    (A) a summary of--
                            (i) current scientific data pertaining to 
                        the health effects of the ingredients added to 
                        tobacco in the manufacture of tobacco products; 
                        and
                            (ii) any proposed additional research 
                        activities on such health effects; and
                    (B) information pertaining to any such ingredient 
                that in the judgment of technical experts of the Food 
                and Drug Administration or the Centers for Disease 
                Control and Prevention meaningfully increases the 
                health risk or risks presented to users of tobacco 
                products containing such ingredient.
            (2) Confidential information.--Except for information 
        required to be disclosed in accordance with any of sections 601 
        through 603, all information submitted under subsection (a) and 
        provided to technical experts of the Food and Drug 
        Administration or to the Centers for Disease Control and 
        Prevention shall be treated as trade secret or confidential 
        commercial information subject to section 552 (b)(4) of title 
        5, United States Code, and section 1905 of title 18, United 
        States Code, and shall not be revealed, to any person other 
        than those authorized by the Administrator in carrying out 
        their official duties under this section.
    (c) Reports by the Administrator.--
            (1) In general.--At such times as the Administrator 
        considers appropriate, the Administrator shall transmit to the 
        Congress a report, based on the information provided under 
        subsection (a), containing--
                    (A) a summary of research activities and proposed 
                research activities on the health effects of 
                ingredients added to tobacco in the manufacture of 
                tobacco products and the findings of such research;
                    (B) information pertaining to any such ingredient 
                that in the judgment of the Administrator meaningfully 
                increases the health risk or risks presented to users 
                of tobacco products containing such ingredient, and
                    (C) any other information, other than trade secrets 
                and confidential commercial information, the inclusion 
                of which the Administrator determines to be in the 
                public interest.
            (2) Confidential information.--
                    (A) In general.--Except for information required to 
                be disclosed in accordance with sections 601 through 
                603, all information provided to the Administrator 
                under paragraph (1) shall be treated as trade secret or 
                confidential commercial information subject to section 
                552 (b)(4) of title 5, United States Code, and section 
                1905 of title 18, United States Code, and shall not be 
                revealed, to any person other than those authorized by 
                the Administrator in carrying out their official duties 
                under this section.
                    (B) Limitation.--Subparagraph (A) shall not be 
                construed to authorize the withholding of a list 
                provided under subsection (a) from any duly authorized 
                subcommittee or committee of the Congress. If a 
                subcommittee or committee of the Congress requests the 
                Administrator to provide it such a list, the 
                Administrator shall make the list available to the 
                subcommittee or committee and shall, at the same time, 
                notify in writing the tobacco product manufacturer that 
                provided the list of such request.
                    (C) Procedures.--The Administrator shall establish 
                written procedures to assure the confidentiality of 
                information provided under paragraph (1). Such 
                procedures shall include the designation of a duly 
                authorized agent to serve as custodian of such 
                information. The agent shall--
                            (i) take physical possession of the 
                        information and, when such information is not 
                        in use by a person authorized to have access to 
                        it, shall store such information in a locked 
                        cabinet or file; and
                            (ii) maintain a complete record of all 
                        persons that inspect or use the information.
                Such procedures shall require that any person permitted 
                access to the information shall be instructed in 
                writing not to disclose the information to anyone who 
                is not entitled to have access to the information.
    (d) Inclusion of Nicotine Yield Ratings of Cigarettes.--Not later 
than September 1, 2009, and each September 1 thereafter, each tobacco 
product manufacturer of cigarettes shall include in its annual report 
submitted in accordance with subsection (a), for each brand style of 
cigarettes it manufactures for commercial distribution domestically, 
nicotine yield ratings determined in accordance with the standards 
established under section 402.
    (e) Inclusion of Nicotine Information Relating to Smokeless Tobacco 
Products.--Not later than September 1, 2009, and each September 1 
thereafter, each tobacco product manufacturer of a smokeless tobacco 
product shall include in its annual report submitted in accordance with 
subsection (a), for each brand style of smokeless tobacco product it 
manufactures for commercial distribution domestically, nicotine 
information determined in accordance with the standards established 
under section 403.

SEC. 402. NICOTINE REPORTING REQUIREMENTS FOR CIGARETTES.

    (a) In General.--The testing of cigarettes for purposes of this 
title shall comply with this section.
    (b) Selection of Cigarettes for Testing.--Cigarettes of each brand 
style tested shall be randomly selected from cigarette packages 
obtained from the manufacturing facility of the tobacco product 
manufacturer.
    (c) Brand Styles Identical in Composition.--For purposes of this 
section, if a brand style of cigarettes is identical to 1 or more other 
brand styles of cigarettes, except for brand name designation and other 
aspects not affecting the physical or chemical composition or 
performance of the cigarettes, then, for purposes of this section, 
those brand styles shall be treated as if they were a single brand 
style, and the cigarette manufacturer shall be required to test only 1 
of those brand styles in lieu of testing all such brand styles. The 
cigarette manufacturer shall specify in its annual report to the 
Administrator under section 401(c) the brand styles covered by the 
results with respect to the brand style tested.
    (d) Machine-Smoking Regimens.--
            (1) Regulations.--Not later than December 31, 2010, the 
        Administrator shall, by regulation, establish not more than 2 
        machine-smoking regimens for determining the yield of nicotine 
        from each brand style of cigarettes manufactured for commercial 
        distribution domestically.
            (2) Conditioning.--Cigarettes to be tested under this 
        subsection shall be conditioned in accordance with ISO 
        3402:1999, entitled ``Tobacco and tobacco products--Atmosphere 
        for conditioning and testing.''
            (3) Testing trials.--In establishing either 1 or 2 smoking 
        regimens, the Administrator shall mandate and coordinate 
        interlaboratory, collaborative testing trials to verify the 
        suitability and ruggedness of the smoking regimen or regimens.
            (4) Meaningful change in nicotine yield.--On the basis of 
        the interlaboratory testing trials, the Administrator shall 
        determine, as to each regimen, the magnitude of change in a 
        measured value that constitutes a meaningful change in the 
        nicotine yield of a cigarette.
            (5) Nicotine yield values.--The regulations promulgated 
        under this subsection shall require that cigarette 
        manufacturers report all nicotine yield values to a number of 
        decimal places consistent with the established value for a 
        meaningful change in the nicotine yield of a cigarette and in 
        light of any limitations associated with the smoking regimen.
            (6) Requirement of regimen.--One of the 2 smoking regimens 
        for establishing the yield of nicotine from each brand style of 
        cigarettes shall be the ISO smoking regimen. When testing a 
        brand style with the ISO smoking regimen, 20 channels of 5 
        cigarettes per channel shall be smoked using a linear smoking 
        machine.
            (7) Alternative regimen.--The other regimen, if established 
        by the Administrator, shall be the ISO testing regimen modified 
        as follows:
                    (A) Puff volume shall be adjusted to 45 
                milliliters.
                    (B) Puff interval shall be adjusted to 30 seconds.
                    (C) Puff duration shall remain 2 seconds.
                    (D) 50 percent of the ventilation holes shall be 
                blocked by the design of the cigarette holding device, 
                placement of adhesive tape over 50 percent of the 
                circumference of the cigarette filter to block 
                ventilation holes present, or by another method 
                approved by the Administrator.
                    (E) 20 channels of 3 cigarettes per channel shall 
                be smoked using a linear smoking machine.
    (e) Aspects of Cigarettes To Be Determined.--For each brand style 
of cigarettes that is tested under this section, nicotine content and 
other aspects shall be determined as follows:
            (1) Total nicotine content of the cigarette, reported in 
        milligrams of nicotine, shall be determined using the protocol 
        for measuring nicotine content in tobacco as described in--
                    (A) the rules published on May 2, 1997, at pages 
                24115 and 24116 of volume 62 of the Federal Register 
                (Protocol for Analysis of Nicotine, Total Moisture, and 
                pH in Smokeless Tobacco Products); or
                    (B) the colorimetric technique identified as 
                CORESTA Recommended Method No. 35 (Determination of 
                total alkaloids (as nicotine) in tobacco by continuous 
                flow analysis).
        In measuring nicotine content, the cigarette manufacturer shall 
        use the following sampling method: Two cigarettes shall be 
        randomly selected from each pack and conditioned, the tobacco 
        rod split open, and the cigarette tobacco mixed thoroughly 
        before weighing. The minimum sample size shall be 100 grams of 
        tobacco. If the weight of the tobacco is less than 100 grams, 
        sufficient additional cigarettes shall be randomly selected 
        from each pack to achieve the minimum sample size.
            (2) Percent filter tip ventilation, defined as the amount 
        of air dilution in the whole smoke provided by the perforations 
        in the cigarette filter, described in percent, shall be 
        determined in accordance with the current version of ISO 
        6565:2002, entitled ``Tobacco and tobacco products--Draw 
        resistance of cigarettes and pressure drop of filter rods--
        Standard conditions and measurement''. Two cigarettes shall be 
        randomly selected from each sampled pack, conditioned, and 
        tested for percent filter ventilation. The average percent 
        filter ventilation shall be computed for a sample of 60 
        cigarettes obtained in the manner described in subsection (b).
            (3) For 3 brand styles of cigarettes selected by the 
        Administrator from each brand family that has a national market 
        share of 3.0 percent or greater, as reported in the most recent 
        (published not later than December 31 of the year preceding the 
        reporting deadline) Maxwell Report, ``Cigarette Brand Sales and 
        Market Share'' published by Davenport and Company, Richmond, 
        Virginia, or a comparable report designated by the 
        Administrator, pH of cigarette smoke shall be determined on a 
        puff-by-puff basis, in accordance with the method described in 
        Harris, J.L., and Hayes, L.E., ``A method for measuring the pH 
        of whole smoke'', Tobacco Science, 1977: 60: 81-83, or the 
        method described in Sensabaugh, A.J., Jr., and Cundiff, R.H., 
        ``A New Technique for Determining the pH of Whole Tobacco 
        Smoke'', Tobacco Science, 1967: 11:25-30, and Brunnemann, K.D. 
        and Hoffmann, D., ``The pH of Tobacco Smoke'', Food, Cosmet. 
        Toxical., 1974:112:115.
    (f) Classification of Nicotine Yield Ratings.--Nicotine yield 
ratings reported in the annual report in accordance with section 401(a) 
shall be classified by the cigarette manufacturer on the basis of the 
larger of the 2 nicotine yield testing results produced under 
subsection (d) and in accordance with the following standards:
            (1) ``High Nicotine'': cigarettes yielding more than 1.2 
        milligrams per cigarette.
            (2) ``Moderate Nicotine'': cigarettes yielding more than 
        0.2 and less than or equal to 1.2 milligrams per cigarette.
            (3) ``Low Nicotine'': cigarettes yielding more than or 
        equal to 0.01 and less than or equal to 0.2 milligrams per 
        cigarette.
            (4) ``Nicotine Free'': cigarettes yielding less than 0.01 
        milligrams per cigarette.
    (g) Accredited Laboratory.--Each test conducted in accordance with 
this section shall be performed in a laboratory that has been 
accredited according to the ISO 17025 standard, entitled ``General 
Requirements for the Competence of Calibration and Testing 
Laboratories''.
    (h) Manner of Reporting.--The Administrator shall, by regulation, 
specify the manner in which the results of tests conducted under this 
section shall be reported to the Administrator.

SEC. 403. NICOTINE REPORTING REQUIREMENTS FOR SMOKELESS TOBACCO 
              PRODUCTS.

    (a) Testing of Smokeless Tobacco Products.--Unless the 
Administrator approves equivalent or superior testing standards, 
information developed under this section and to be included in the 
annual report by a manufacturer of smokeless tobacco products under 
section 401(d) shall conform to testing standards published on March 
23, 1999, at pages 14085 through 14096 of volume 64 of the Federal 
Register (Annual Submission of the Quantity of Nicotine Contained in 
Smokeless Tobacco Products Manufactured, Imported, or Packaged in the 
United States), and, as to each brand style, except as provided in 
subsection (b), shall include the following:
            (1) The pH of the tobacco.
            (2) The moisture content as a percentage of the dry weight 
        of the tobacco.
            (3) The nicotine in milligrams per gram of tobacco.
            (4) The nicotine as a percentage of the dry weight of the 
        tobacco.
            (5) The percentage of un-ionized (free) nicotine.
            (6) The total un-ionized (free) nicotine in milligrams per 
        gram of tobacco.
            (7) A classification of each brand style of smokeless 
        tobacco products for nicotine delivery, in accordance with the 
        following standards:
                    (A) ``High Nicotine'': smokeless tobacco product 
                yielding more than 2.0 milligrams of total free 
                nicotine per gram.
                    (B) ``Moderate Nicotine'': smokeless tobacco 
                product yielding more than 0.5 and less than or equal 
                to 2.0 milligrams of total free nicotine per gram.
                    (C) ``Low Nicotine'': smokeless tobacco product 
                yielding more than or equal to .01 and less than or 
                equal to 0.5 milligrams of total free nicotine per 
                gram.
                    (D) ``Nicotine Free'': smokeless tobacco product 
                yielding less than 0.01 milligrams of total free 
                nicotine per gram.
    (b) Brand Styles Identical in Composition.--For purposes of this 
section, if a brand style of smokeless tobacco is identical to 1 or 
more other brand styles of smokeless tobacco, except for brand name 
designation and other aspects not affecting the physical or chemical 
composition or performance of the smokeless tobacco, then, for purposes 
of this section, those brand styles shall be treated as if they were a 
single brand style, and the smokeless tobacco product manufacturer 
shall be required to test only 1 of those brand styles in lieu of 
testing all of those brand styles. The smokeless tobacco product 
manufacturer shall specify in its annual report to the Administrator 
under section 401(d) the brand styles covered by the results with 
respect to the brand style tested.
    (c) Accredited Laboratory.--Each test conducted in accordance with 
this section shall be performed in a laboratory that has been 
accredited according to the ISO 17025 standard, entitled ``General 
Requirements for the Competence of Calibration and Testing 
Laboratories''.

                    TITLE V--TAR AND NICOTINE YIELDS

SEC. 501. DETERMINATION OF TAR AND NICOTINE YIELDS OF CIGARETTES.

    (a) Machine-Smoking Regimen.--The testing regimen or regimens and 
the reporting method established by the Administrator under section 
402(c) with respect to the determination and reporting of nicotine 
yields shall also be used for the determination and disclosure of tar 
yields under section 504.
    (b) Continued Supervision by Federal Trade Commission.--Prior to 
the expiration of a reasonable period determined by the Administrator 
for conducting testing pursuant to the regulations promulgated by the 
Administrator under section 402(c), but in no event later than December 
31, 2009, manufacturers of cigarettes shall continue to disclose the 
tar and nicotine yields of their cigarettes under the supervision of 
the Federal Trade Commission.
    (c) End of Federal Trade Commission Authority.--After the period 
specified under subsection (b), the Federal Trade Commission shall have 
no authority over the testing or reporting of the tar and nicotine 
yields of cigarettes.
    (d) Accredited Laboratory.--Each test conducted in accordance with 
this section shall be performed in a laboratory that has been 
accredited according to the ISO 17025 standard, entitled ``General 
Requirements for the Competence of Calibration and Testing 
Laboratories''.

SEC. 502. CIGARETTE TAR LIMITS.

    (a) No Increase in Tar Yields.--No tobacco product manufacturer 
shall distribute for sale domestically a brand style of cigarettes that 
generates a tar yield greater than the tar yield of that brand style of 
cigarettes on Federal Tobacco Act of 2009, as determined by the ISO 
smoking regimen and its associated tolerances. The tar tolerances for 
cigarettes with ISO tar yields in the range of 1 to 20 milligrams per 
cigarette, based on variations arising from sampling procedure, test 
method, and sampled product, itself, are the greater of plus or minus--
            (1) 15 percent; or
            (2) 1 milligram per cigarette.
    (b) Limit on New Cigarettes.--Beginning on the effective date of 
this Act, no tobacco product manufacturer shall manufacture for 
commercial distribution domestically a brand style of cigarettes that--
            (1) was not in commercial distribution domestically on the 
        effective date of this Act; and
            (2) generates a tar yield of greater than 20 milligrams per 
        cigarette as determined by the ISO smoking regimen and its 
        associated tolerances.
    (c) Limit on All Cigarettes.--Beginning on January 1, 2010, no 
tobacco product manufacturer shall manufacture for commercial 
distribution domestically a brand style of cigarettes that generates a 
tar yield greater than 20 milligrams per cigarette as determined by the 
ISO smoking regimen and its associated tolerances.
    (d) Review by Administrator.--Beginning on the effective date of 
this Act, the Administrator shall evaluate the available scientific 
evidence addressing the potential relationship between historical tar 
yield values and the risk of harm to smokers. If upon a review of such 
evidence, and after consultation with technical experts of the Food and 
Drug Administration and the Centers for Disease Control and Prevention 
and notice and an opportunity for public comment, the Administrator 
determines that a reduction in tar yield may reasonably be expected to 
provide a meaningful reduction of the risk or risks of harm to smokers, 
the Administrator shall issue an order that--
            (1) provides that no cigarette manufacturer shall 
        manufacture for commercial distribution domestically a 
        cigarette that generates a tar yield that exceeds 14 milligrams 
        as determined by the ISO smoking regimen and its associated 
        tolerances; and
            (2) provides a reasonable time for manufacturers to come 
        into compliance with such prohibition.

SEC. 503. PROHIBITION OF SMOKING ARTICLE YIELD TERMS.

    Beginning 24 months after the effective date of this Act, no 
tobacco product manufacturer shall use in packaging, labeling, or 
advertising of cigarettes any of the following terms: ``low tar'', 
``medium'', ``light'', ``mild'', ``ultra light,'' and ``ultra low 
tar''.

SEC. 504. DISCLOSURE OF TAR AND NICOTINE YIELDS OF CIGARETTES.

    A tobacco product manufacturer shall include prominently in all 
advertising for each brand style of cigarettes it manufactures for 
commercial distribution domestically the ISO tar and nicotine yields 
for that brand style, and shall post on an Internet-accessible website, 
or other location electronically accessible to the public, the ISO tar 
and nicotine yields for every brand style of cigarettes it manufactures 
for commercial distribution domestically.

SEC. 505. EVALUATION OF TOBACCO SMOKE TOXICANTS.

    Not later than 24 months after the effective date of this Act, the 
Administrator shall, after consultation with the Centers for Disease 
Control and Prevention and the Food and Drug Administration, publish a 
plan to identify and review constituents known to comprise tobacco 
smoke with regard to the toxicant potential of each such constituent. 
Such plan shall consider and prioritize the relative risk of serious or 
chronic tobacco-related diseases and adverse health conditions that the 
various smoke constituents might present, taking into account--
            (1) all relevant chemical, toxicological, human exposure 
        and epidemiologic studies, and other relevant competent and 
        reliable scientific evidence;
            (2) the likelihood that the magnitude of a specific 
        reduction in a smoke constituent may reasonably be expected to 
        reduce the risk of harm to users of the tobacco product;
            (3) verification that the magnitude of the specific 
        reduction in a smoke constituent can be achieved by existing 
        agronomic practices, product technology, or manufacturing 
        capability; and
            (4) that the magnitude of the specific reduction in a smoke 
        constituent does not significantly reduce consumer acceptance 
        of the tobacco product.

      TITLE VI--PUBIC DISCLOSURES BY TOBACCO PRODUCT MANUFACTURERS

SEC. 601. DISCLOSURES ON PACKAGES OF SMOKING ARTICLES.

    (a) Back Face for Required Disclosures.--For purposes of this 
section--
            (1) the principal face of a package of a smoking article is 
        the face that has the largest surface area or, for faces with 
        identical surface areas, any of the faces that have the largest 
        surface area, except that a package shall not be characterized 
        as having more than 2 principal faces;
            (2) the front face of the package shall be the principal 
        face of the package;
            (3) if the front and back faces of the package are of 
        different sizes in terms of area, then the larger face shall be 
        the front face;
            (4) the back face of the package shall be the principal 
        face of a package that is opposite the front face of the 
        package;
            (5) the entire back face of the package shall be allocated 
        for required package disclosures in accordance with this 
        section; and
            (6) if the package is cylindrical, a contiguous area 
        constituting 30 percent of the total surface area of the 
        cylinder shall be deemed the back face.
    (b) Front Face and Panels Available to Manufacturer.--The front 
face and the side, top, and bottom panels of a package of a smoking 
article shall be available solely to a manufacturer (including a 
repackager) for identification of a tobacco product, in accordance with 
this Act, and for other matter as determined by the manufacturer, and 
shall not be available for any disclosure that the Administrator 
requires a manufacturer to make.
    (c) Required Information on Back Face.--Not later than 24 months 
after the effective date of this Act, the back face of a package of a 
smoking article shall be available solely for disclosures required by 
or under this Act, the Federal Cigarette Labeling and Advertising Act 
(15 U.S.C. 1331 et seq.), and any other Federal law. Such disclosures 
shall include--
            (1) the printed name and address of the manufacturer, 
        packer, or distributor, and any other identification associated 
        with the manufacturer, packer, or distributor or with the 
        tobacco product that the Administrator may require;
            (2) 1 statutorily mandated warning label as required by 
        section 4 of the Federal Cigarette Labeling and Advertising Act 
        (15 U.S.C. 1333);
            (3) a list of ingredients as required by subsection (e); 
        and
            (4) the appropriate tax registration number.
    (d) Amendment of Federal Cigarette Labeling and Advertising Act.--
Section 4(b)(1) of the Federal Cigarette Labeling and Advertising Act 
(15 U.S.C. 1333(b)(1)) is amended to read as follows:
    ``(b)(1) Each label statement required under paragraph (1) of 
subsection (a) shall be located on the back face of a package of 
cigarettes in accordance with section 601 of the Federal Tobacco Act of 
2009. The phrase `Surgeon General's Warning' shall appear in capital 
letters, and the size of all other letters in the label shall be the 
same size as the size of such letters on the date of introduction of 
the Federal Tobacco Act of 2009. All letters in the label shall appear 
in conspicuous and legible type in contrast by typography, layout, or 
color with all other printed matter on the package.''.
    (e) Package Disclosure of Ingredients.--Not later than 24 months 
after the effective date of this Act, the package of a smoking article 
shall bear a list of the common or usual names of the ingredients 
present in the smoking article in an amount greater than 0.1 percent of 
the total dry weight of the tobacco product (including all 
ingredients), that shall comply with the following:
            (1) Such listing of ingredients shall appear under, or be 
        conspicuously accompanied by, the heading ``Tobacco and 
        principal tobacco ingredients''.
            (2) Tobacco may be listed as ``tobacco,'' and shall be the 
        first listed ingredient.
            (3) After tobacco, the ingredients shall be listed in 
        descending order of predominance, by weight.
            (4) Spices and natural and artificial flavors may be 
        listed, respectively, as ``spices'' and ``natural and 
        artificial flavors'' without naming each.
            (5) Preservatives may be listed as ``preservatives'' 
        without naming each.
            (6) The disclosure of any ingredient in accordance with 
        this section may, at the option of the tobacco product 
        manufacturer, designate the functionality or purpose of that 
        ingredient.

SEC. 602. DISCLOSURES ON PACKAGES OF CHEWING TOBACCO AND DRY SNUFF.

    (a) Back Face for Required Disclosures.--For purposes of this 
section--
            (1) the principal face of a package of chewing tobacco or 
        dry snuff is the face that has the largest surface area or, for 
        faces with identical surface areas, any of the faces that have 
        the largest surface area, except that a package shall not be 
        characterized as having more than 2 principal faces;
            (2) the front or top face shall be the principal face of 
        the package;
            (3) if the front or top and back or bottom faces are of 
        different sizes in terms of area, then the larger face shall be 
        the front or top face;
            (4) the back or bottom face of the package shall be the 
        principal face of a package that is opposite the front or top 
        face of the package;
            (5) beginning 24 months after the effective date of this 
        Act, the entire back or bottom face of the package shall be 
        allocated for required package disclosures in accordance with 
        this section; and
            (6) if the package is cylindrical, a contiguous area 
        constituting 30 percent of the total surface area of the 
        cylinder shall be deemed the back face.
    (b) Front or Top Face and Panels Available to Manufacturer.--The 
front or top face and the side, top, and bottom panels of a package of 
chewing tobacco or dry snuff shall be available solely to a 
manufacturer (including a repackager) for identification of a tobacco 
product, in accordance with this Act, and for other matter as 
determined by the manufacturer, and shall not be available for any 
disclosure that the Administrator requires a manufacturer to make.
    (c) Required Information on Back or Bottom Face.--The back or 
bottom face of a package of chewing tobacco or dry snuff shall be 
available solely for disclosures required by or under this Act, the 
Comprehensive Smokeless Tobacco Health Education Act of 1986 (15 U.S.C. 
4401 et seq.), and any other Federal law. Such disclosures shall 
include--
            (1) the printed name and address of the manufacturer, 
        packer, or distributor, and any other identification associated 
        with the manufacturer, packer, or distributor or with the 
        tobacco product that the Administrator may require;
            (2) 1 warning label, as required by section 3 of the 
        Comprehensive Smokeless Tobacco Health Education Act of 1986 
        (15 U.S.C. 4402);
            (3) a list of ingredients as required by subsection (e); 
        and
            (4) the appropriate tax registration number.
    (d) Amendment of Comprehensive Smokeless Tobacco Health Education 
Act of 1986.--Section 3(b)(1) of the Comprehensive Smokeless Tobacco 
Health Education Act of 1986 (15 U.S.C. 4402(b)(1)) is amended to read 
as follows:
            ``(1) in the case of the smokeless tobacco product 
        package--
                    ``(A) in a conspicuous and prominent place on the 
                back face or bottom of the package; and
                    ``(B) in a conspicuous format and in conspicuous 
                and legible type in contrast with all other printed 
                material on the package; and''.
    (e) Package Disclosure of Ingredients.--Beginning 24 months after 
the effective date of this Act, a package of chewing tobacco or dry 
snuff shall bear a list of the common or usual names of the ingredients 
present in the chewing tobacco or dry snuff in an amount greater than 
0.1 percent of the total dry weight of the tobacco (including all 
ingredients) that shall comply with the following:
            (1) Such listing of ingredients shall appears under, or be 
        conspicuously accompanied by, the heading ``Tobacco and 
        principal tobacco ingredients''.
            (2) Tobacco may be listed as ``tobacco,'' and shall be the 
        first listed ingredient.
            (3) After tobacco, the ingredients shall be listed in 
        descending order of predominance, by weight.
            (4) Spices and natural and artificial flavors may be 
        listed, respectively, as ``spices'' and ``natural and 
        artificial flavors'' without naming each.
            (5) Preservatives may be listed as ``preservatives'' 
        without naming each.
            (6) The disclosure of any ingredient in accordance with 
        this section may, at the option of the tobacco product 
        manufacturer, designate the functionality or purpose of that 
        ingredient.

SEC. 603. PUBLIC DISCLOSURE OF INGREDIENTS.

    (a) Regulations.--Not later than 24 months after the effective date 
of this Act, the Administrator shall, by regulation, establish 
standards under which each tobacco product manufacturer shall disclose 
publicly, and update at least annually--
            (1) a list of the ingredients it uses in each brand style 
        it manufactures for commercial distribution domestically, as 
        provided for in subsection (b); and
            (2) a composite list of all the ingredients it uses in any 
        of the brand styles it manufactures for commercial distribution 
        domestically, as provided for in subsection (c).
    (b) Ingredients To Be Disclosed as to Each Brand Style.--
            (1) In general.--With respect to the public disclosure 
        required by subsection (a)(1), as to each brand style, the 
        tobacco product manufacture shall disclose the common or usual 
        name of each ingredient present in the brand style in an amount 
        greater than 0.1 percent of the total dry weight of the tobacco 
        (including all ingredients).
            (2) Requirements.--Disclosure under paragraph (1) shall 
        comply with the following:
                    (A) Tobacco may be listed as ``tobacco,'' and shall 
                be the first listed ingredient.
                    (B) After tobacco, the ingredients shall be listed 
                in descending order of predominance, by weight.
                    (C) Spices and natural and artificial flavors may 
                be listed, respectively, as ``spices'' and ``natural 
                and artificial flavors'' without naming each.
                    (D) Preservatives may be listed as 
                ``preservatives'' without naming each.
                    (E) The disclosure of any ingredient in accordance 
                with this section may, at the option of the tobacco 
                product manufacturer, designate the functionality or 
                purpose of that ingredient.
    (c) Aggregate Disclosure of Ingredients.--
            (1) In general.--The public disclosure required of a 
        tobacco product manufacturer under subsection (a)(2) shall 
        consist of a single list of all ingredients used in any brand 
        style that a tobacco product manufacturer manufactures for 
        commercial distribution domestically, without regard to the 
        quantity used, and including, separately, each spice, each 
        natural or artificial flavoring, and each preservative.
            (2) Listing.--The ingredients shall be listed by their 
        respective common or usual names in descending order of 
        predominance by the total weight used annually by the tobacco 
        product manufacturer in manufacturing tobacco products for 
        commercial distribution domestically.
    (d) No Required Disclosure of Quantities.--The Administrator shall 
not require any public disclosure of quantitative information about any 
ingredient in a tobacco product.
    (e) Disclosure on Website.--The public disclosures required by 
subsection (a) may be made by posting on an Internet-accessible 
website, or other location electronically accessible to the public, 
which is identified on all packages of a tobacco product manufacturer's 
tobacco products.
    (f) Timing of Initial Required Disclosures.--No disclosure pursuant 
to this section shall be required to commence until the regulations 
under subsection (a) have been in effect for not less than 1 year.

SEC. 604. CIGARETTE LABEL AND ADVERTISING WARNINGS.

    Section 4(a)(1) of the Federal Cigarette Labeling and Advertising 
Act (15 U.S.C. 1333(a)(1)) is amended to read as follows:
    ``(1) Beginning 18 months after the date of enactment of the 
Federal Tobacco Act of 2009, it shall be unlawful for any person to 
manufacture, package, sell, offer to sell, distribute, or import for 
sale or distribution within the United States any cigarettes the 
package of which fails to bear, in accordance with the requirements of 
this section, 1 of the following labels:
            ```SURGEON GENERAL'S WARNING: Cigarettes are addictive'.
            ```SURGEON GENERAL'S WARNING: Tobacco smoke can harm your 
        children'.
            ```SURGEON GENERAL'S WARNING: Cigarettes cause fatal lung 
        disease'.
            ```SURGEON GENERAL'S WARNING: Cigarettes cause cancer'.
            ```SURGEON GENERAL'S WARNING: Cigarettes cause strokes and 
        heart disease'.
            ```SURGEON GENERAL'S WARNING: Smoking during pregnancy can 
        harm your baby'.
            ```SURGEON GENERAL'S WARNING: Smoking can kill you'.
            ```SURGEON GENERAL'S WARNING: Tobacco smoke causes fatal 
        lung disease in non-smokers'.
            ```SURGEON GENERAL'S WARNING: Quitting smoking now greatly 
        reduces serious risks to your health'.''.

                   TITLE VII--ENFORCEMENT PROVISIONS

SEC. 701. PROHIBITED ACTS.

    The following acts and the causing thereof are hereby prohibited:
            (1) The introduction or delivery for introduction into 
        interstate commerce of any tobacco product that is adulterated 
        or misbranded.
            (2) The adulteration or misbranding of any tobacco product 
        in interstate commerce.
            (3) The receipt in interstate commerce of any tobacco 
        product that is known to be adulterated or misbranded, and the 
        delivery or proffered delivery thereof for pay or otherwise.
            (4) The failure to establish or maintain any record, or 
        make any report or other submission, or to provide any notice 
        required by or under this Act, or the refusal to permit access 
        to, verification of, or copying of any record as required by 
        this Act.
            (5) The refusal to permit entry or inspection as authorized 
        by this Act.
            (6) The making to the Administrator of a statement, report, 
        certification, or other submission required by this Act, with 
        knowledge that such statement, report, certification, or other 
        submission is false in a material aspect.
            (7) The manufacturing, shipping, receiving, storing, 
        selling, distributing, possession, or use of any tobacco 
        product with knowledge that it is an illicit tobacco product.
            (8) The forging, simulating without proper permission, 
        falsely representing, or without proper authority using any 
        brand name.
            (9) The using by any person to his or her own advantage, or 
        revealing, other than to the Administrator or officers or 
        employees of the Agency, or to the courts when relevant in any 
        judicial proceeding under this Act, any information acquired 
        under authority of this Act concerning any item which as a 
        trade secret is entitled to protection, except that this 
        paragraph shall not authorize the withholding of information 
        from the House of Representatives or the Senate or from, to the 
        extent of matter within its jurisdiction, any committee or 
        subcommittee of such committee or any joint committee of 
        Congress or any subcommittee of such joint committee.
            (10) The alteration, mutilation, destruction, obliteration, 
        or removal of the whole or any part of the labeling of, or the 
        doing of any other act with respect to, a tobacco product, if 
        such act is done while such tobacco product is held for sale 
        (whether or not the first sale) after shipment in interstate 
        commerce, and results in such tobacco product being adulterated 
        or misbranded.
            (11) The importation of any tobacco product that is 
        adulterated, misbranded, or otherwise not in compliance with 
        this Act.
            (12) The commission of any act prohibited by section 201.

SEC. 702. INJUNCTION PROCEEDINGS.

    (a) Jurisdiction.--The district courts of the United States shall 
have jurisdiction, for cause shown, to restrain violations of this Act, 
except for violations of section 701(11).
    (b) Type of Trial.--In case of an alleged violation of an 
injunction or restraining order issued under this section, which also 
constitutes a violation of this Act, trial shall be by the court, or 
upon demand of the defendant, by a jury.

SEC. 703. PENALTIES.

    (a) Violations of Section 701.--Any person who willfully violates a 
provision of section 701 shall be imprisoned for not more than 1 year, 
or fined not more than $25,000, or both.
    (b) Civil Penalties for Violation of Section 803.--
            (1) In general.--Any person who knowingly distributes or 
        sells, other than through retail sale or retail offer for sale, 
        any cigarette brand style in violation of section 803(a)--
                    (A) for a first offense shall be liable for a civil 
                penalty not to exceed $10,000 for each distribution or 
                sale; or
                    (B) for a second offense shall be liable for a 
                civil penalty not to exceed $25,000 for each 
                distribution or sale;
        except that the penalty imposed under this paragraph against 
        any person with respect to violations during any 30-day period 
        shall not exceed $100,000.
            (2) Retailers.--Any retailer who knowingly distributes, 
        sells, or offers for sale any cigarette brand style in 
        violation of section 803(a) shall--
                    (A) for a first offense for each sale or offer for 
                sale of cigarettes, if the total number of packages of 
                cigarettes sold or offered for sale--
                            (i) does not exceed 50 packages of 
                        cigarettes, be liable for a civil penalty not 
                        to exceed $500 for each sale or offer for sale; 
                        and
                            (ii) exceeds 50 packages of cigarettes, be 
                        liable for a civil penalty not to exceed $1,000 
                        for each sale or offer for sale;
                    (B) for each subsequent offense for each sale or 
                offer for sale of cigarettes, if the total number of 
                cigarettes sold or offered for sale--
                            (i) does not exceed 50 packages of 
                        cigarettes, be liable for a civil penalty not 
                        to exceed $2,000 for each sale or offer for 
                        sale; and
                            (ii) exceeds 50 packages of cigarettes, be 
                        liable for a civil penalty not to exceed $5,000 
                        for each sale or offer for sale;
                except that the penalty imposed under this paragraph 
                against any person during any 30-day period shall not 
                exceed $25,000.

SEC. 704. SEIZURE.

    (a) Articles Subject to Seizure.--
            (1) In general.--Any tobacco product that is adulterated or 
        misbranded when introduced into or while in interstate commerce 
        or while held for sale (whether or not the first sale) after 
        shipment in interstate commerce, or which may not, under the 
        provisions of this Act, be introduced into interstate commerce, 
        shall be liable to be proceeded against while in interstate 
        commerce, or at any time thereafter, on libel of information 
        and condemned in any district court of the United States within 
        the jurisdiction of which the tobacco product is found.
            (2) Limitation.--No libel for condemnation shall be 
        instituted under this Act for any alleged misbranding if there 
        is pending in any court a libel for condemnation proceeding 
        under this Act based upon the same alleged misbranding, and not 
        more than 1 such proceeding shall be instituted if no such 
        proceeding is so pending, except that such limitations shall 
        not apply--
                    (A) when such misbranding has been the basis of a 
                prior judgment in favor of the United States, in a 
                criminal, injunction, or libel for condemnation 
                proceeding under this Act; or
                    (B) when the Administrator has probable cause to 
                believe from facts found, without hearing, by the 
                Administrator or any officer or employee of the Agency 
                that the misbranded tobacco product is dangerous to 
                health beyond the inherent danger to health posed by 
                tobacco, or that the labeling of the misbranded tobacco 
                product is fraudulent, or would be in a material 
                respect misleading to the injury or damage of the 
                purchaser or consumer.
        In any case in which the number of libel for condemnation 
        proceedings is limited as provided for in this paragraph, the 
        proceeding pending or instituted shall, on application of the 
        claimant, seasonably made, be removed for trial to any district 
        agreed upon by stipulation between the parties, or, in case of 
        failure to so stipulate within a reasonable time, the claimant 
        may apply to the court of the district in which the seizure has 
        been made, and such court (after giving the United States 
        attorney for such district reasonable notice and opportunity to 
        be heard) shall by order, unless good cause to the contrary is 
        shown, specify a district of reasonable proximity to the 
        claimant's principal place of business, to which the case shall 
        be removed for trial.
            (3) List.--The following shall be liable to be proceeded 
        against at any time on libel of information and condemned in 
        any district court of the United States within the jurisdiction 
        of which they are found:
                    (A) Any tobacco product that is an illicit tobacco 
                product.
                    (B) Any container of an illicit tobacco product.
                    (C) Any equipment or thing used in making an 
                illicit tobacco product.
                    (D) Any adulterated or misbranded tobacco product.
            (4) Limitation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no libel for condemnation may be instituted under 
                this subsection against any tobacco product that--
                            (i) is misbranded under this Act because of 
                        its advertising; and
                            (ii) is being held for sale to the ultimate 
                        consumer in an establishment other than an 
                        establishment owned or operated by a 
                        manufacturer, packer, or distributor of the 
                        tobacco product.
                    (B) Exception.--A libel for condemnation may be 
                instituted under this subsection against a tobacco 
                product described in subparagraph (A) if the tobacco 
                product's advertising which resulted in the tobacco 
                product being misbranded was disseminated in the 
                establishment in which the tobacco product is being 
                held for sale to the ultimate consumer--
                            (i) such advertising was disseminated by, 
                        or under the direction of, the owner or 
                        operator of such establishment; or
                            (ii) all or part of the cost of such 
                        advertising was paid by such owner or operator.
    (b) Procedures.--
            (1) In general.--The tobacco product, equipment, or other 
        thing proceeded against under this section shall be liable to 
        seizure by process pursuant to the libel, and the procedure in 
        cases under this section shall conform, to the maximum extent 
        practicable, to the procedure in admiralty, except that on 
        demand of either party any issue of fact joined in any such 
        case shall be tried by jury.
            (2) Consolidation.--
                    (A) In general.--When libel for condemnation 
                proceedings under this section, involving the same 
                claimant and the same issues of adulteration or 
                misbranding, are pending in 2 or more jurisdictions, 
                such pending proceedings, upon application of the 
                claimant seasonably made to the court of one such 
                jurisdiction, shall be consolidated for trial by order 
                of such court, and tried in--
                            (i) any district selected by the claimant 
                        where one of such proceedings is pending; or
                            (ii) a district agreed upon by stipulation 
                        between the parties.
                    (B) Application for consolidation.--If no order for 
                consolidation is made under subparagraph (A) within a 
                reasonable time, the claimant may apply to the court of 
                one such jurisdiction and such court (after giving the 
                United States attorney for such district reasonable 
                notice and opportunity to be heard) shall by order, 
                unless good cause to the contrary is shown, specify a 
                district of reasonable proximity to the claimant's 
                principal place of business, in which all such pending 
                proceedings shall be consolidated for trial and tried. 
                Such order of consolidation shall not apply so as to 
                require the removal of any case the date for trial of 
                which has been fixed. The court granting such order 
                shall give prompt notification thereof to the other 
                courts having jurisdiction of the cases covered 
                thereby.
    (c) Samples and Analyses.--The court at any time after seizure 
under this section up to a reasonable time before trial shall by order 
allow any party to a condemnation proceeding, or the party's attorney 
or agent, to obtain a representative sample of the article seized and a 
true copy of the analysis, if any, on which the proceeding is based and 
the identifying marks or numbers, if any, of the packages from which 
the samples analyzed were obtained.
    (d) Disposition of Condemned Tobacco Products.--
            (1) Destruction or sale.--
                    (A) In general.--Any tobacco product condemned 
                under this section shall, after entry of the decree, be 
                disposed of by destruction or sale as the court may, in 
                accordance with the provisions of this section, direct, 
                and the proceeds thereof, if sold (less the legal costs 
                and charges), shall be paid into the Treasury of the 
                United States. Such tobacco product shall not be sold 
                under such decree contrary to the provisions of this 
                Act or the laws of the jurisdiction in which sold.
                    (B) Supervision.--After entry of the decree under 
                subparagraph (A) and upon the payment of the costs of 
                the proceedings and the execution of a good and 
                sufficient bond conditioned on such article not being 
                sold or disposed of contrary to the provisions of this 
                Act or the laws of any State in which sold, the court 
                may by order direct that such tobacco product be 
                delivered to the owner thereof to be destroyed or 
                brought into compliance with the provisions of this 
                Act, under the supervision of an officer or employee 
                duly designated by the Administrator. The expenses of 
                such supervision shall be paid by the person obtaining 
                release of the tobacco product under bond.
                    (C) Imported products.--If the tobacco product 
                involved in a condemnation under this paragraph was 
                imported into the United States and the person seeking 
                its release establishes--
                            (i) that the adulteration, misbranding, or 
                        violation did not occur after the tobacco 
                        product was imported; and
                            (ii) that the person seeking the release of 
                        the tobacco product had no cause for believing 
                        that it was adulterated, misbranded, or in 
                        violation before it was released from customs 
                        custody;
                the court may permit the tobacco product to be 
                delivered to the owner for exportation under section 
                709 in lieu of destruction upon a showing by the owner 
                that there is a reasonable certainty that the tobacco 
                product will not be reimported into the United States.
            (2) Application to equipment.--The provisions of paragraph 
        (1) shall, to the extent deemed appropriate by the court, apply 
        to any equipment or other thing that is not otherwise within 
        the scope of such paragraph and which is referred to in 
        paragraph (3) of subsection (a).
            (3) Remission or mitigation.--Whenever in any proceeding 
        under this section, involving paragraph (3) of subsection (a), 
        the condemnation of any equipment or thing (other than a 
        tobacco product) is decreed, the court shall allow the claim of 
        any claimant, to the extent of such claimant's interest, for 
        remission or mitigation of such forfeiture if such claimant 
        proves to the satisfaction of the court--
                    (A) that such claimant has not caused the equipment 
                or thing to be within 1 of the categories referred to 
                in such paragraph (3) and has no interest in any 
                tobacco product referred to in such paragraph;
                    (B) that such claimant has an interest in such 
                equipment or other thing as owner or lienor or 
                otherwise, acquired by such claimant in good faith; and
                    (C) that such claimant at no time had any knowledge 
                or reason to believe that such equipment or other thing 
                was being or would be used in, or to facilitate, the 
                violation of laws of the United States relating to any 
                illicit tobacco product.
    (e) Costs and Fees.--When a decree of condemnation is entered 
against the tobacco product or other article under this section, court 
costs and fees, and storage and other proper expenses shall be awarded 
against the person, if any, intervening as claimant of the tobacco 
product or other article.
    (f) Removal for Trial.--In the case of removal for trial of any 
case as provided for by subsection (a) or (b)--
            (1) the clerk of the court from which removal is made shall 
        promptly transmit to the court in which the case is to be tried 
        all records in the case necessary in order that such court may 
        exercise jurisdiction; and
            (2) the court to which such case was removed shall have the 
        powers and be subject to the duties, for purposes of such case, 
        which the court from which removal was made would have had, or 
        to which such court would have been subject, if such case had 
        not been removed.
    (g) Administrative Detention of Tobacco Products.--
            (1) Detention authority.--
                    (A) In general.--An officer or qualified employee 
                of the Agency may order the detention, in accordance 
                with this subsection, of any tobacco product that is 
                found during an inspection, examination, or 
                investigation under this Act conducted by such officer 
                or qualified employee, if the officer or qualified 
                employee has credible evidence or information 
                indicating that such article presents a threat of 
                serious adverse health consequences beyond those 
                normally inherent in the use of tobacco products.
                    (B) Administrator's approval.--A tobacco product or 
                component thereof may be ordered detained under 
                subparagraph (A) only if the Administrator or an 
                official designated by the Administrator approves the 
                order. An official may not be so designated unless the 
                official is an officer with supervisory responsibility 
                for the inspection, examination, or investigation that 
                led to the order.
            (2) Period of detention.--A tobacco product may be detained 
        under paragraph (1) for a reasonable period, not to exceed 20 
        days, unless a greater period, not to exceed 30 days, is 
        necessary, to institute an action under subsection (a) or 
        section 702.
            (3) Security of detained tobacco product.--An order under 
        paragraph (1) may require that the tobacco product to be 
        detained be labeled or marked as detained, and shall require 
        that the tobacco product be maintained in or removed to a 
        secure facility, as appropriate. A tobacco product subject to 
        such an order shall not be transferred by any person from the 
        place at which the tobacco product is ordered detained, or from 
        the place to which the tobacco product is so removed, as the 
        case may be, until released by the Administrator or until the 
        expiration of the detention period applicable under such order, 
        whichever occurs first. This paragraph shall not be construed 
        as authorizing the delivery of the tobacco product pursuant to 
        the execution of a bond while the tobacco product is subject to 
        the order, and section 709 shall not be construed to authorize 
        the delivery of the tobacco product pursuant to the execution 
        of a bond while the article is subject to the order.
            (4) Appeal of detention order.--
                    (A) In general.--With respect to a tobacco product 
                ordered detained under paragraph (1), any person that 
                would be entitled to be a claimant of such tobacco 
                product if the tobacco product were seized under 
                subsection (a) may appeal the detention order to the 
                Administrator. Within 5 days after such an appeal is 
                filed, the Administrator, after providing opportunity 
                for an informal hearing, shall confirm or terminate the 
                order involved, and such confirmation by the 
                Administrator shall be considered a final agency action 
                for purposes of section 702 of title 5, United States 
                Code. If during such 5-day period the Administrator 
                fails to provide such an opportunity, or to confirm or 
                terminate such order, the order is deemed to be 
                terminated.
                    (B) Effect of instituting court action.--The 
                process under subparagraph (A) for the appeal of an 
                order under paragraph (1) shall terminate if the 
                Administrator institutes an action under subsection (a) 
                or section 702 regarding the tobacco product involved.

SEC. 705. REPORT OF MINOR VIOLATIONS.

    Nothing in this Act shall be construed as requiring the 
Administrator to report for prosecution, or for the institution of 
libel or injunction proceedings, minor violations of this Act whenever 
the Administrator believes that the public interest will be adequately 
served by a suitable written notice or warning.

SEC. 706. INSPECTION.

    (a) Authority To Inspect.--
            (1) In general.--The Administrator shall have the power to 
        inspect the premises of a tobacco product manufacturer for 
        purposes of determining compliance with this Act, or the 
        regulations promulgated under this Act.
            (2) Entry of premises.--Officers of the Agency designated 
        by the Administrator, upon presenting appropriate credentials 
        and a written notice to the person in charge of the premises 
        involved, are authorized to enter, at reasonable times, without 
        a search warrant, any factory, warehouse, or other 
        establishment in which tobacco products are manufactured, 
        processed, packaged, or held for domestic distribution.
            (3) Reasonable limits and manner.--An inspection under this 
        subsection shall be conducted within reasonable limits and in a 
        reasonable manner, and shall be limited to examining only those 
        things, including records, relevant to determining whether 
        violations of this Act, or regulations under this Act, have 
        occurred.
            (4) Limitation.--No inspection under this section shall 
        extend to financial data, sales data other than shipment data, 
        pricing data, personnel data (other than data as to 
        qualifications of technical and professional personnel 
        performing functions subject to this Act), or research data. A 
        separate notice shall be given for each such inspection, but a 
        notice shall not be required for each entry made during the 
        period covered by the inspection. Each such inspection shall be 
        commenced and completed with reasonable promptness.
    (b) Report of Observations.--Prior to leaving the premises, the 
officer of the Agency who has supervised or conducted the inspection 
shall give to the person in charge of the premises a report in writing 
setting forth any conditions or practices that appear to manifest a 
violation of this Act, or the regulations under this Act.
    (c) Samples.--If an officer has obtained any sample in the course 
of an inspection under this section, prior to leaving the premises such 
officer shall give to the person in charge of the premises a receipt 
describing the samples obtained. As to each such sample obtained, the 
officer shall furnish promptly to the person in charge of the premises 
a copy of the sample and of any analysis made upon the sample.

SEC. 707. EFFECT OF COMPLIANCE.

    Compliance with the provisions of this Act, and the regulations 
promulgated under this Act, shall constitute a complete defense to any 
civil action, including relating to any product liability action, that 
seeks to recover damages, whether compensatory or punitive, based upon 
an alleged defect in the labeling or advertising of any tobacco product 
distributed for sale domestically.

SEC. 708. IMPORTS.

    (a) Imports; List of Registered Foreign Establishments; Samples 
From Unregistered Foreign Establishments; Examination and Refusal of 
Admission.--
            (1) In general.--The Secretary of Homeland Security shall 
        deliver to the Administrator, upon request by the 
        Administrator, samples of tobacco products that are being 
        imported or offered for import into the United States, giving 
        notice thereof to the owner or consignee, who may appear before 
        the Administrator and have the right to introduce testimony.
            (2) List of establishments and samples.--The Administrator 
        shall furnish to the Secretary of Homeland Security a list of 
        establishments registered pursuant to subsection (d) of section 
        109, and shall request that, if any tobacco products 
        manufactured, prepared, or processed in an establishment not so 
        registered are imported or offered for import into the United 
        States, samples of such tobacco products be delivered to the 
        Administrator, with notice of such delivery to the owner or 
        consignee, who may appear before the Administrator and have the 
        right to introduce testimony.
            (3) Examinations and refusal.--If it appears from the 
        examination of samples delivered under this subsection or 
        otherwise that--
                    (A) such tobacco product is forbidden or restricted 
                in sale in the country in which it was produced or from 
                which it was exported; or
                    (B) such tobacco product is adulterated, 
                misbranded, or otherwise in violation of this Act;
        then such tobacco product shall be refused admission, except as 
        provided in subsection (b).
            (4) Destruction.--The Secretary of Homeland Security shall 
        cause the destruction of any such tobacco product refused 
        admission under this subsection unless such tobacco product is 
        exported, under regulations prescribed by the Secretary of 
        Homeland Security, within 90 days of the date of notice of such 
        refusal or within such additional time as may be permitted 
        pursuant to such regulations.
    (b) Disposition of Refused Tobacco Products.--
            (1) In general.--Pending a decision as to the admission of 
        a tobacco product being imported or offered for import, the 
        Secretary of Homeland Security may authorize the delivery of 
        such tobacco product to the owner or consignee upon the 
        execution by such owner or consignee of a good and sufficient 
        bond providing for the payment of such liquidated damages in 
        the event of default as may be required pursuant to regulations 
        of the Secretary of Homeland Security.
            (2) Actions for compliance.--If it appears to the 
        Administrator that a tobacco product that is refused admission 
        under subsection (a)(3) may, by relabeling or other action, be 
        brought into compliance with this Act or rendered other than a 
        tobacco product, a final determination as to admission of such 
        tobacco product may be deferred and, upon filing of timely 
        written application by the owner or consignee and the execution 
        by such owner or consignee of a bond as provided in paragraph 
        (1), the Administrator may, in accordance with regulations, 
        authorize the applicant to perform such relabeling or other 
        action specified in such authorization (including destruction 
        or export of rejected tobacco products or portions thereof, as 
        may be specified in the Administrator's authorization). All 
        such relabeling or other action pursuant to such authorization 
        shall in accordance with regulations be under the supervision 
        of an officer or employee of the Agency designated by the 
        Administrator, or an officer or employee of the Department of 
        Homeland Security designated by the Secretary of Homeland 
        Security.
    (c) Charges Concerning Refused Tobacco Products.--All expenses 
(including travel, per diem or subsistence, and salaries of officers or 
employees of the United States) in connection with the destruction 
provided for in subsection (a) and the supervision of the relabeling or 
other action authorized under the provisions of subsection (b), the 
amount of such expenses to be determined in accordance with 
regulations, and all expenses in connection with the storage, cartage, 
or labor with respect to any tobacco product refused admission under 
subsection (a), shall be paid by the owner or consignee and, in default 
of such payment, shall constitute a lien against any future 
importations made by such owner or consignee.

SEC. 709. TOBACCO PRODUCTS FOR EXPORT.

    (a) Exemption for Tobacco Products Exported.--Except as provided in 
subsection (b), a tobacco product intended for export shall be exempt 
from this Act if--
            (1) it is not in conflict with the laws of the country to 
        which it is intended for export, as demonstrated by--
                    (A) a document issued by the government of that 
                country; or
                    (B) a document provided by a person knowledgeable 
                with respect to the relevant laws of that country and 
                qualified by training and experience to make 
                determinations as to whether the tobacco product is or 
                is not in conflict with such laws;
            (2) it is labeled on the outside of the shipping package 
        that it is intended for export; and
            (3) the particular units of tobacco product intended for 
        export have not been sold or offered for sale in domestic 
        commerce.
    (b) Products for United States Armed Forces Overseas.--A tobacco 
product intended for export shall not be exempt from this Act if it is 
intended for sale or distribution to members or units of the Armed 
Forces of the United States located outside of the United States.
    (c) Limitation.--This Act shall not apply to a person that 
manufactures or distributes tobacco products solely for export under 
subsection (a), except to the extent such tobacco products are subject 
to subsection (b).

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. USE OF PAYMENTS UNDER THE MASTER SETTLEMENT AGREEMENT AND 
              INDIVIDUAL STATE SETTLEMENT AGREEMENTS.

    (a) Reduction of Grant Amounts.--
            (1) In general.--For fiscal year 2010 and each subsequent 
        fiscal year, the Secretary shall reduce, as provided for in 
        subsection (b), the amount of any grant to a State under 
        section 1921 of the Public Health Service Act (42 U.S.C. 300x-
        21) if the Secretary determines that the State is expending 
        funds received by such State pursuant to the Master Settlement 
        Agreement, the Florida Settlement Agreement, the Minnesota 
        Settlement Agreement, the Mississippi Memorandum of 
        Understanding, or the Texas Settlement Agreement, as 
        applicable, on tobacco control programs in amounts that are 
        less than the amounts recommended for that State by the Centers 
        for Disease Control and Prevention.
            (2) Certain states.--In the case of a State whose 
        legislature does not convene a regular session in fiscal year 
        2009, the requirement described in paragraph (1) shall apply 
        only for fiscal year 2010 and subsequent fiscal years.
    (b) Determination of State Spending.--
            (1) In general.--Prior to making a grant to a State under 
        section 1921 of the Public Health Service Act (42 U.S.C. 300x-
        21) for the first applicable fiscal year or any subsequent 
        fiscal year, the Secretary shall make a determination of 
        whether, during the immediately preceding fiscal year, the 
        State has expended on tobacco control programs, from the funds 
        received by such State pursuant to the Master Settlement 
        Agreement, the Florida Settlement Agreement, the Minnesota 
        Settlement Agreement, the Mississippi Memorandum of 
        Understanding, or the Texas Settlement Agreement, as 
        applicable, at least the amount recommended for that State by 
        the Centers for Disease Control and Prevention.
            (2) Reduction in allotment.--If, after notice to the State 
        and an opportunity for a hearing, the Secretary determines 
        under paragraph (1) that the State has expended less than the 
        recommended amount, the Secretary shall reduce the amount of 
        the allotment to the State under section 1921 of the Public 
        Health Service Act (42 U.S.C. 300x-21) for the fiscal year 
        involved by an amount equal to--
                    (A) in the case of the first applicable fiscal 
                year, 10 percent of the amount determined under section 
                1933 of such Act (42 U.S.C. 300x-33) for the State for 
                the fiscal year;
                    (B) in the case of the first fiscal year following 
                such applicable fiscal year, 20 percent of the amount 
                determined under such section 1933, for the State for 
                the fiscal year;
                    (C) in the case of the second such fiscal year, 30 
                percent of the amount determined under such section 
                1933, for the State for the fiscal year; and
                    (D) in the case of the third such fiscal year or 
                any subsequent fiscal year, 40 percent of the amount 
                determined under such section 1933, for the State for 
                the fiscal year.
The Secretary shall not grant to any State a waiver of the terms and 
requirements of this subsection or subsection (a).
    (c) Definitions.--For the purposes of this section:
            (1) First applicable fiscal year.--The term ``first 
        applicable fiscal year'' means--
                    (A) fiscal year 2011, in the case of any State 
                described in subsection (a)(2); and
                    (B) fiscal year 2010, in the case of any other 
                State.
            (2) Florida settlement agreement.--The term ``Florida 
        Settlement Agreement'' means the Settlement Agreement, together 
        with the exhibits thereto, entered into on August 25, 1997, 
        between the State of Florida and signatory tobacco product 
        manufacturers, as specified therein.
            (3) Master settlement agreement.--The term ``Master 
        Settlement Agreement'' means the Master Settlement Agreement, 
        together with the exhibits thereto, entered into on November 
        23, 1998, between the signatory States and signatory tobacco 
        product manufacturers, as specified therein.
            (4) Minnesota settlement agreement.--The term ``Minnesota 
        Settlement Agreement'' means the Settlement Agreement, together 
        with the exhibits thereto, entered into on May 8, 1998, between 
        the State of Minnesota and signatory tobacco product 
        manufacturers, as specified therein.
            (5) Mississippi memorandum of understanding.--The term 
        ``Mississippi Memorandum of Understanding'' means the 
        Memorandum of Understanding, together with the exhibits thereto 
        and Settlement Agreement contemplated therein, entered into on 
        July 2, 1997, between the State of Mississippi and signatory 
        tobacco product manufacturers, as specified therein.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (7) Texas settlement agreement.--The term ``Texas 
        Settlement Agreement'' means the Settlement Agreement, together 
        with the exhibits thereto, entered into on January 16, 1998, 
        between the State of Texas and signatory tobacco product 
        manufacturers, as specified therein.

SEC. 802. USER FEES.

    (a) Assessment of User Fees.--The Administrator shall assess an 
annual user fee for each fiscal year, beginning with fiscal year 2010, 
determined in accordance with this section, upon each tobacco product 
manufacturer (including each importer) that is subject to this Act.
    (b) Use of User Fees.--The Administrator shall make user fees 
collected pursuant to this section available to pay, in each fiscal 
year, for the costs of the activities of the Agency related to the 
regulation of tobacco products under this Act.
    (c) Amounts of User Fees.--
            (1) Limitation.--Except as provided in paragraph (2), the 
        total amount of the user fees assessed for each fiscal year 
        pursuant to this section shall be sufficient, and shall not 
        exceed the amount necessary, to pay for the costs of the 
        activities described in subsection (b) for the fiscal year 
        involved.
            (2) Amounts.--The total amount of the assessments under 
        this section--
                    (A) for fiscal year 2010 shall not exceed 
                $100,000,000; and
                    (B) for each subsequent fiscal year, shall not 
                exceed the limitation on the assessment imposed during 
                the preceding fiscal year, as adjusted by the 
                Administrator (after notice, published in the Federal 
                Register) to reflect the greater of--
                            (i) the total percentage change that 
                        occurred in the Consumer Price Index for all 
                        urban consumers (all items; United States city 
                        average) for the 12-month period ending on June 
                        30 preceding the fiscal year for which the fee 
                        amounts are being established; or
                            (ii) the total percentage change for the 
                        previous fiscal year in basic pay under the 
                        General Schedule in accordance with section 
                        5332 of title 5, United States Code, as 
                        adjusted by any locality-based comparability 
                        payment pursuant to section 5304 of such title 
                        for Federal employees stationed in the District 
                        of Columbia.
            (3) Notification.--The Administrator shall notify each 
        tobacco product manufacturer subject to this section of the 
        amount of the annual assessment imposed on such tobacco product 
        manufacturer under subsection (d). Such notifications shall 
        occur not later than the July 31 prior to the beginning of the 
        fiscal year for which such assessment is being made, and 
        payments of all assessments shall be made not later than 60 
        days after the date of each such notification. Such 
        notification shall contain a complete list of the assessments 
        imposed on tobacco product manufacturers for that fiscal year.
    (d) Liability of Tobacco Product Manufacturers for User Fees.--
            (1) Determination.--The user fee to be paid by each tobacco 
        product manufacturer for a fiscal year shall be determined by 
        multiplying--
                    (A) such tobacco product manufacturer's market 
                share of tobacco products, as determined under 
                regulations issued pursuant to subsection (e); by
                    (B) the total user fee assessment for such fiscal 
                year, as determined under subsection (c).
            (2) Limitation.--Except as provided in paragraph (3), no 
        tobacco product manufacturer shall be required to pay a 
        percentage of a total annual user fee for all tobacco product 
        manufacturers that exceeds the market share of such 
        manufacturer.
            (3) Failure to pay.--If--
                    (A) a tobacco product manufacturer fails to pay the 
                user fee in full by the due date;
                    (B) the Administrator, after diligent inquiry, 
                concludes that such manufacturer is unlikely to make 
                such payment in full by the time such payment will be 
                needed by the Administrator; and
                    (C) the Administrator and the Department of Justice 
                make diligent efforts to obtain payment in full from 
                such tobacco product manufacturer;
        the Administrator may re-allocate the unpaid amount owed by 
        that tobacco product manufacturer to the other tobacco product 
        manufacturers on the basis of their respective market shares. 
        If the Administrator makes such re-allocation, the 
        Administrator shall set a reasonable time, not less than 60 
        days from the date of notice of the amount due, for payment of 
        that amount by such manufacturers. If and to the extent that 
        the Administrator ultimately receives from that tobacco product 
        manufacturer or any successor to such tobacco product 
        manufacturer any payment of the previously unpaid user fee 
        amount, the Administrator shall credit such payment to the 
        tobacco product manufacturers that made payments of any such 
        re-allocated amount, in proportion to their respective payments 
        of such amount.
    (e) Regulations.--Not later than 12 months after the date of 
enactment of this Act, the Administrator shall, by regulation, 
establish a system for determining the market shares of tobacco 
products for each tobacco product manufacturer subject to this section. 
In promulgating regulations under this subsection, the Administrator 
shall--
            (1) take into account the differences between categories 
        and subcategories of tobacco products in terms of sales, manner 
        of unit packaging, and any other factors relevant to the 
        calculation of market share for a tobacco product manufacturer;
            (2) take into account that different tobacco product 
        manufacturers rely to varying degrees on the sales of different 
        categories and subcategories of tobacco products; and
            (3) provide that the market share of tobacco products for 
        each tobacco product manufacturer shall be recalculated on an 
        annual basis.

SEC. 803. FIRE SAFETY STANDARDS FOR CIGARETTES.

    (a) Prohibition.--Beginning on January 1, 2012, no person shall 
distribute, sell, or offer for sale domestically any brand style of 
cigarettes unless--
            (1) cigarettes of that brand style randomly sampled from a 
        manufacturing facility of the tobacco product manufacturer have 
        been tested in accordance with subsection (b);
            (2) not more than 25 percent of the cigarettes of that 
        brand style tested in a complete test in accordance with 
        subsection (b) exhibit full-length burns; and
            (3) a written certification has been filed by the tobacco 
        product manufacturer with the Administrator in accordance with 
        subsection (c), and that written certification is current in 
        accordance with subsection (d), except that--
                    (A) nothing in this section shall be construed to 
                prohibit a distributor or retailer that is in 
                possession of any cigarette brand style inventory prior 
                to January 1, 2012, from distributing or selling the 
                cigarettes of that inventory after January 1, 2012, but 
                prior to July 1, 2012; and
                    (B) nothing in this section shall be construed to 
                prohibit any person from distributing or selling, or 
                offering to distribute or sell, cigarettes of a brand 
                style that has not been tested and certified as meeting 
                the performance standard set forth in paragraph (2) if 
                the cigarettes are manufactured and packaged for 
                distribution or sale outside the United States and are 
                not intended for sale or distribution to members or 
                units of the Armed Forces of the United States located 
                outside of the United States; and
            (4) the cigarette packages, cartons, and cases containing 
        that brand style are marked--
                    (A) to indicate that cigarettes of that brand style 
                have been certified in accordance with this section; 
                and
                    (B) in a manner designated by order by the 
                Administrator.
    (b) Testing of Cigarettes.--Testing of each brand style of 
cigarettes shall be conducted--
            (1) in accordance with the American Society of Testing and 
        Materials standard E2187-4, entitled ``Standard Test Method for 
        Measuring the Ignition Strength of Cigarettes'';
            (2) for each cigarette on 10 layers of filter paper;
            (3) so that a replicate test of 40 cigarettes for each 
        brand style of cigarettes comprises a complete test trial for 
        that brand style; and
            (4) in a laboratory that has been accredited in accordance 
        with ISO/IEC 17205 of the International Organization for 
        Standardization and that has an implemented quality control and 
        quality assurance program that includes a procedure capable of 
        determining the repeatability of the testing results to a 
        repeatability value that is not greater than 0.19.
    (c) Certifications by Manufacturers.--Each tobacco product 
manufacturer shall submit, with respect to each brand style of 
cigarettes that such manufacturer manufactures for commercial 
distribution domestically, a written certification--
            (1) that contains--
                    (A) the brand name and brand style name;
                    (B) the cigarette length in millimeters;
                    (C) the cigarette circumference in millimeters;
                    (D) the classification of the cigarette as menthol 
                or non-menthol;
                    (E) the classification of the cigarette as filter 
                or non-filter;
                    (F) a description of the type of package used for 
                the brand style;
                    (G) the name, address, and telephone number of the 
                laboratory that conducted the testing, if different 
                from those of the tobacco product manufacturer; and
                    (H) the date that the testing occurred;
            (2) attesting that the brand style listed in the 
        certification has been tested in accordance with all 
        requirements of subsection (b); and
            (3) attesting that the brand style meets the performance 
        standard set forth in subsection (a)(2).
    (d) Duration of Effectiveness of Certification.--A certification 
for each brand style of cigarettes under subsection (c) shall be deemed 
current for the 3-year period beginning on the date of on which the 
certification is received by the Administrator. Such date shall be 
stated in a written acknowledgment of receipt sent by the Administrator 
to the submitter. Cigarettes of each brand style shall be tested in 
accordance with subsection (a)(1), and a new certification shall be 
submitted in accordance with subsection (c), prior to the end of each 
such 3-year certification period.
    (e) Changes in Cigarettes.--If a tobacco product manufacturer makes 
a change to the cigarettes of a brand style that is likely to alter the 
ability of the cigarettes of that brand style to meet the performance 
standard set forth in subsection (a)(2), the tobacco product 
manufacturer shall conduct subsequent tests with respect to that brand 
style in accordance with the requirements of subsection (b) and submit 
to the Administrator a new certification in accordance with subsection 
(c) prior to introducing or delivering for introduction, or causing the 
introduction or delivery for introduction, into interstate commerce of 
any cigarettes of such changed brand style for commercial distribution 
domestically or to members or units of the armed forces of the United 
States located outside of the United States. If a tobacco product 
manufacturer makes a change to the cigarettes of a brand style that is 
not likely to alter the ability of the cigarettes of that brand style 
to meet the performance standard set forth in subsection (a)(2), such 
re-testing shall not be required.
    (f) Records.--Each tobacco product manufacturer shall keep a record 
of all testing conducted in support of a certification under this 
section for a period of not less than 3-years from the date on which 
the certification is received by the Administrator, and shall send to 
the Administrator, upon request by the Administrator during that 
period, any and all records of such testing and the results obtained.
    (g) Preemption.--With respect to fire safety or ignition-
propensity, the Administrator and any State or political subdivision 
thereof shall not--
            (1) require testing of cigarettes that would be in addition 
        to, or different from, the testing prescribed in subsections 
        (a)(1) and (b);
            (2) require a performance standard that is in addition to, 
        or different from, the performance standard set forth in 
        subsection (a)(2); or
            (3) require any other or additional package marking.
No requirement or prohibition based on fire safety or ignition 
propensity shall be imposed under State or local law with respect to 
any cigarette.

SEC. 804. INSPECTION BY THE ALCOHOL AND TOBACCO TAX TRADE BUREAU OF 
              RECORDS OF CERTAIN CIGARETTE AND SMOKELESS TOBACCO 
              SELLERS.

    (a) In General.--Any officer of the Alcohol and Tobacco Tax Trade 
Bureau may, during normal business hours, enter the premises of any 
person described in subsection (b) for the purposes of inspecting--
            (1) any records or information required to be maintained by 
        such person under the provisions of law referred to in 
        subsection (d); or
            (2) any cigarettes or smokeless tobacco kept or stored by 
        such person at such premises.
    (b) Covered Persons.--Subsection (a) shall apply to any person who 
engages in a delivery sale, and who ships, sells, distributes, or 
receives any quantity in excess of 10,000 cigarettes, or any quantity 
in excess of 500 single-unit consumer-sized cans or packages of 
smokeless tobacco, within a single month.
    (c) Relief.--
            (1) In general.--The district courts of the United States 
        shall have the authority in a civil action under this 
        subsection to compel inspections authorized by subsection (a).
            (2) Violations.--Whoever violates subsection (a) or an 
        order issued pursuant to paragraph (1) shall be subject to a 
        civil penalty in an amount that shall not exceed $10,000 for 
        each such violation.
    (d) Covered Provisions of Law.--The provisions of law referred to 
in this subsection are--
            (1) the Act of October 19, 1949 (15 U.S.C. 375; commonly 
        referred to as the ``Jenkins Act'');
            (2) chapter 114 of title 18, United States Code; and
            (3) this title.
    (e) Delivery Sale Defined.--In this section, the term ``delivery 
sale'' has the meaning given that term in 2343(e) of title 18, United 
States Code.

SEC. 805. TOBACCO GROWER PROTECTION.

    No provision of this Act shall be construed to permit the Secretary 
of Health and Human Services, or any other Federal official, to require 
changes to traditional farming practices, including standard 
cultivation practices, curing processes, seed composition, tobacco 
type, fertilization, soil, record keeping, or any other requirement 
affecting farming practices.

SEC. 806. SEVERABILITY.

    If any provision of this Act, the amendments made by this Act, or 
the application of any provision of this Act or amendments to any 
person or circumstance is held to be invalid, the remainder of this 
Act, the amendments made by this Act, and the application of the 
provisions of this Act or amendments to any other person or 
circumstance shall not be affected, and shall continue to be enforced 
to the fullest extent possible.
                                 <all>