[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4425 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4425

  To increase the taxes on certain tobacco products, to prohibit the 
     flavoring of certain tobacco products, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 2019

Mr. Suozzi (for himself, Mr. King of New York, Mr. Cohen, Mr. Panetta, 
 Mr. Krishnamoorthi, and Mr. Cicilline) introduced the following bill; 
  which was referred to the Committee on Energy and Commerce, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
  To increase the taxes on certain tobacco products, to prohibit the 
     flavoring of certain tobacco products, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Quell Underage Inhaling of Toxic 
Substances Act of 2019'' or as the ``QUITS Act of 2019''.

SEC. 2. INCREASE IN TAX ON CERTAIN TOBACCO PRODUCTS.

    (a) Increasing Tax on Cigarettes.--
            (1) Small cigarettes.--Section 5701(b)(1) of the Internal 
        Revenue Code of 1986 is amended by striking ``$50.33'' and 
        inserting ``$150''.
            (2) Large cigarettes.--Section 5701(b)(2) of such Code is 
        amended by striking ``$105.69'' and inserting ``$314.99''.
    (b) Tax Parity for Small Cigars.--Paragraph (1) of section 5701(a) 
of the Internal Revenue Code of 1986 is amended by striking ``$50.33'' 
and inserting ``$150''.
    (c) Tax Parity for Large Cigars.--
            (1) In general.--Paragraph (2) of section 5701(a) of the 
        Internal Revenue Code of 1986 is amended by striking ``52.75 
        percent'' and all that follows through the period and inserting 
        ``$73.85 per pound and a proportionate tax at the like rate on 
        all fractional parts of a pound but not less than 15 cents per 
        cigar.''.
            (2) Guidance.--The Secretary of the Treasury, or the 
        Secretary's delegate, may issue guidance regarding the 
        appropriate method for determining the weight of large cigars 
        for purposes of calculating the applicable tax under section 
        5701(a)(2) of the Internal Revenue Code of 1986.
    (d) Tax Parity for Smokeless Tobacco.--
            (1) Section 5701(e) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in paragraph (1), by striking ``$1.51'' and 
                inserting ``$40'',
                    (B) in paragraph (2), by striking ``50.33 cents'' 
                and inserting ``$16'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3)  Smokeless tobacco sold in discrete single-use 
        units.--On discrete single-use units, $150 per thousand.''.
            (2) Section 5702(m) of such Code is amended--
                    (A) in paragraph (1), by striking ``or chewing 
                tobacco'' and inserting ``, chewing tobacco, or 
                discrete single-use unit'',
                    (B) in paragraphs (2) and (3), by inserting ``that 
                is not a discrete single-use unit'' before the period 
                at the end of each such paragraph, and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) Discrete single-use unit.--The term `discrete single-
        use unit' means any product containing tobacco that--
                    ``(A) is not intended to be smoked, and
                    ``(B) is in the form of a lozenge, tablet, pill, 
                pouch, dissolvable strip, or other discrete single-use 
                or single-dose unit.''.
    (e) Tax Parity for Pipe Tobacco.--Section 5701(f) of the Internal 
Revenue Code of 1986 is amended by striking ``$2.8311 cents'' and 
inserting ``$73.85''.
    (f) Tax Parity for Roll-Your-Own Tobacco.--Section 5701(g) of the 
Internal Revenue Code of 1986 is amended by striking ``$24.78'' and 
inserting ``$73.85''.
    (g) Tax Parity for Roll-Your-Own Tobacco and Certain Processed 
Tobacco.--Subsection (o) of section 5702 of the Internal Revenue Code 
of 1986 is amended by inserting ``, and includes processed tobacco that 
is removed for delivery or delivered to a person other than a person 
with a permit provided under section 5713, but does not include 
removals of processed tobacco for exportation'' after ``wrappers 
thereof''.
    (h) Clarifying Tax Rate for Other Tobacco Products.--
            (1) In general.--Section 5701 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(i) Other Tobacco Products.--Any product not otherwise described 
under this section that has been determined to be a tobacco product by 
the Food and Drug Administration through its authorities under the 
Family Smoking Prevention and Tobacco Control Act shall be taxed at a 
level of tax equivalent to the tax rate for cigarettes on an estimated 
per use basis as determined by the Secretary.''.
            (2) Establishing per use basis.--For purposes of section 
        5701(i) of the Internal Revenue Code of 1986, not later than 12 
        months after the later of the date of the enactment of this Act 
        or the date that a product has been determined to be a tobacco 
        product by the Food and Drug Administration, the Secretary of 
        the Treasury (or the Secretary of the Treasury's delegate) 
        shall issue final regulations establishing the level of tax for 
        such product that is equivalent to the tax rate for cigarettes 
        on an estimated per use basis.
    (i) Clarifying Definition of Tobacco Products.--
            (1) In general.--Subsection (c) of section 5702 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(c) Tobacco Products.--The term `tobacco products' means--
            ``(1) cigars, cigarettes, smokeless tobacco, pipe tobacco, 
        and roll-your-own tobacco, and
            ``(2) any other product subject to tax pursuant to section 
        5701(i).''.
            (2) Conforming amendments.--Subsection (d) of section 5702 
        of such Code is amended by striking ``cigars, cigarettes, 
        smokeless tobacco, pipe tobacco, or roll-your-own tobacco'' 
        each place it appears and inserting ``tobacco products''.
    (j) Tax Rates Adjusted for Inflation.--Section 5701 of such Code, 
as amended by subsection (g), is amended by adding at the end the 
following new subsection:
    ``(j) Inflation Adjustment.--
            ``(1) In general.--In the case of any calendar year 
        beginning after 2019, each dollar amount contained in this 
        section shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year, determined 
                by substituting `calendar year 2018' for `calendar year 
                2016' in subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $0.01, such amount shall be rounded to 
        the next highest multiple of $0.01''.
    (k) Floor Stocks Taxes.--
            (1) Imposition of tax.--On tobacco products manufactured in 
        or imported into the United States which are removed before the 
        tax increase date and held on such date for sale by any person, 
        there is hereby imposed a tax in an amount equal to the excess 
        of--
                    (A) the tax which would be imposed under section 
                5701 of the Internal Revenue Code of 1986 on the 
                article if the article had been removed on such date, 
                over
                    (B) the prior tax (if any) imposed under section 
                5701 of such Code on such article.
            (2) Tax increase date.--For purposes of this subsection, 
        the term ``tax increase date'' means the day after the date of 
        the enactment of this Act.
    (l) Effective Date.--The amendments made by this section shall 
apply to articles removed after the date of the enactment of this Act.

SEC. 3. PROHIBITING FLAVORING OF TOBACCO PRODUCTS.

    (a) Prohibition.--Subparagraph (A) of section 907(a)(1) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 387g(a)(1)) is amended 
to read as follows:
                    ``(A) Special rule.--Beginning on the date that is 
                1 year after the date of enactment of the Quell 
                Underage Inhaling of Toxic Substances Act of 2019, 
                except as provided in subparagraph (C), a tobacco 
                product or any of its component parts or accessories 
                (including the tobacco, filter, or paper) shall not 
                contain, as a constituent (including a smoke 
                constituent) or additive, an artificial or natural 
                flavor (other than tobacco) that is a characterizing 
                flavor of the tobacco product or tobacco smoke or an 
                herb or spice, including menthol, mint, strawberry, 
                grape, orange, clove, cinnamon, pineapple, vanilla, 
                coconut, licorice, cocoa, chocolate, cherry, or coffee. 
                Nothing in this subparagraph shall be construed to 
                limit the Secretary's authority to take action under 
                this section or other sections of this Act applicable 
                to any artificial or natural flavor, herb, or spice.''.
    (b) Exception.--Paragraph (1) of section 907(a) of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 387g(a)) is amended by adding 
at the end the following new subparagraph:
                    ``(C) Exception for characterizing flavors to 
                decrease smoking.--Notwithstanding subparagraph (A), an 
                electronic nicotine delivery system product or any 
                component or part of such a product may contain, as a 
                constituent (including a smoke constituent) or 
                additive, an artificial or natural flavor or an herb or 
                spice, that is a characterizing flavor of the tobacco 
                product or tobacco smoke so long as the Secretary, in 
                coordination with the Commissioner of Food and Drugs, 
                determines that such characterizing flavor will be 
                appropriate for the protection of public health because 
                it--
                            ``(i) will significantly increase the 
                        likelihood of smoking cessation among current 
                        users of tobacco products;
                            ``(ii) will not increase the likelihood 
                        that individuals who do not use tobacco 
                        products, including youth, will start using 
                        such products; and
                            ``(iii) will not increase the likelihood of 
                        harm to the person using the product.''.
    (c) Savings Provision.--Section 907(a)(1) of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 387g(a)(1)), as in effect on the date 
of enactment of this Act, shall remain in effect until the amendments 
made to such section 907(a)(1) by this section take effect.

SEC. 4. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR OFFICE OF 
              SMOKING AND HEALTH OF THE CENTERS FOR DISEASE CONTROL AND 
              PREVENTION.

    There is hereby authorized to be appropriated to carry out the 
programs of the Office of Smoking and Health of the Centers for Disease 
Control and Prevention $500,000,000 in each fiscal year.
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