[Congressional Record Volume 143, Number 148 (Wednesday, October 29, 1997)]
[Senate]
[Pages S11358-S11364]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG:
  S. 1343. A bill to amend the Internal Revenue Code of 1986 to 
increase the excise tax rate on tobacco products and deposit the 
resulting revenues into a Public Health and Education Resource Trust 
Fund, and for other purposes; to the Committee on Finance.


          the public health and education resource act [phaer]

  Mr. LAUTENBERG. Mr. President, last spring, various State attorneys 
general announced that they had reached a global agreement to settle 
ongoing State lawsuits against the tobacco industry in exchange for 
certain concessions by the industry aimed at reducing teen smoking. 
This truly historic agreement followed a persistent effort by President 
Clinton to empower the Food and Drug Administration to regulate 
nicotine and develop strategies to stop the addiction of our children 
to this deadly drug. President Clinton is the first President in our 
Nation's history to take on the tobacco industry on behalf of the 
American people and he deserves enormous credit for his bold and 
relentless leadership on this issue.
  Since the announcement of the global tobacco settlement, President 
Clinton, his health advisers, former FDA Commissioner David Kessler, 
former Surgeon General C. Everett Koop, our leading public health 
groups, and many of us in the Congress have reviewed the proposed 
settlement. While the attorneys general pushed the industry as hard as 
they could, they had to make significant compromises along the way to 
keep the industry at the bargaining table. An examination of their deal 
with the industry reflects the limits under which they were operating 
and shows that the settlement is flawed in many respects.
  The Congress, Mr. President, is in an entirely different position 
vis-a-vis the tobacco industry. The Congress has no need to make the 
kinds of concessions to the industry that the attorneys general did. 
The Congress does not need permission from the industry to take steps 
to reduce teen smoking and put an end to hundreds of thousands of 
preventable deaths each year. We don't have to settle. Our job is to 
develop legislation in the public interest and promote the public 
health.
  Mr. President, virtually no one in the Congress today supports the 
settlement proposed by the industry and the attorneys general. The 
settlement is dead. It is gone with Joe Camel. After extensive review, 
President Clinton recommended to the Congress that we enact 
comprehensive tobacco control legislation, and focus on the public 
health--not the tobacco industry's interests.
  Mr. President, I share President Clinton's deep reservation about the 
settlement as a framework for this legislation. Instead, I would like 
to propose an alternative framework for my colleagues and others in the 
public health community to consider. I hope it will influence our 
deliberations next year, and contribute to the enactment of effective 
and comprehensive tobacco legislation. Mr. President, this approach is 
not premised on the notion of a deal with the industry. Instead, it 
attempts to build on the extremely thoughtful and knowledgeable work of 
Drs. Kessler and Koop, and many other public health experts and 
economists, who have studied these questions for a long time. It is a 
public health measure, pure and simple.
  Mr. President, today Representative Jim Hansen and I are introducing 
the Public Health and Education Resource Act--or the PHAER Act. The 
PHAER Act is, in some ways simple and straightforward. It goes right at 
the problem. It would raise the excise tax on tobacco by $1.50, 
consistent with the President's recommendation on pricing. It 
specifically targets the revenues raised to public health, with an 
emphasis on reducing youth smoking rates. This bipartisan, bicameral 
proposal is intended to serve as the blueprint for accomplishing the 
public health goals that the President and public health leaders have 
outlined.

  Mr. President, the overarching goal of the public health community is 
to

[[Page S11359]]

decrease the rate of tobacco addiction in children. I believe the PHAER 
Act is the simplest and most direct way to accomplish that goal. Every 
health expert concludes that the single most effective way to reduce 
youth consumption of cigarettes is to increase the price. According to 
the Congressional Research Service, a $1.50 increase in the price of 
cigarettes will result in a 45-percent reduction in youth smoking 
rates. The President has made this a prerequisite to any tobacco 
legislation.
  So, Mr. President, the question before Congress is how to accomplish 
this price increase and serve our public health interests. The tobacco 
settlement would raise prices by funneling money through the tobacco 
companies to accomplish a price increase. This approach relies on the 
industry to raise the price--which is a Catch-22. If the industry does 
raise the price by a $1.50, then there is no guarantee that all of 
these revenues will go toward the public health. In fact, health 
experts and the Federal Trade Commission have concluded that under the 
proposed settlement, the companies would make a substantial profit from 
such a price increase--as less than half of the $1.50 would actually go 
toward settlement payments.
  On the other hand, the companies might not ever raise their prices to 
a point that actually makes a real dent in teen smoking. They could 
choose to simply raise it high enough to cover their settlement costs--
estimated at 62 cents per pack.
  Neither of these outcomes are positive for America's health. That is 
why the only fair way to accomplish these goals is through the PHAER 
Act I am introducing today.
  Mr. President, we know that an increase in excise taxes is the single 
most effective step we can take to reduce teen smoking, and through 
PHAER we can ensure that every penny of the price increase is targeted 
to programs that will further reduce illegal youth tobacco consumption 
and promote other critical public health priorities. This is the most 
effective and reliable mechanism to guarantee that prices go up and 
that revenues are targeted to the proper programs.
  Mr. President, this is not a partisan issue. Senators from both sides 
of the aisle have stated that the excise tax is the most efficient and 
effective way to reduce teen smoking and decrease the cost of tobacco 
illness in our country. This is one of the few taxes that people 
actually support increasing. It is one of the few taxes that can be 
directly linked to positive policy goals. Now, all we need is the will 
to act.
  Mr. President, we propose a revenue pipeline to the public health 
rather than relying on the Rubik's cube payment scheme offered by the 
industry. Under my bill, excise tax increases will turn teenagers away 
from cigarettes and the proceeds of the increase will go directly to 
benefit America's health. These funds are targeted to public health and 
educational programs to further reduce teen tobacco addiction.

  Our PHAER tobacco excise tax increase will be phased in over 3 years. 
Each year the fee will increase by 50 cents until it reaches $1.50. 
Once at $1.50, the PHAER fee will be indexed for inflation to guarantee 
that its price-deterrent effect continues to be strong enough to 
maintain the reduction in teen tobacco use.
  Mr. President, many have stated that a price increase alone will not 
sustain a long term decrease in youth tobacco addiction, and they are 
right. That is why the revenues from the PHAER fee will be targeted to 
public health programs, with an emphasis on those that will directly 
decrease the number of kids who begin to smoke every day.
  Three-quarters of PHAER funds will be disbursed at the State and 
local level for health and education programs that bring home to young 
people the deadly consequences of smoking. These funds will be 
distributed to the States with the supervision and assistance by the 
Secretary of Health and Human Services. We should set out national 
goals for reducing teen smoking, and insist on accountability, but we 
should also give States the flexibility to develop the best programs 
for their people.
  Mr. President, each State will be able to design teen smoking 
cessation programs that are most effective for its particular 
circumstance. An average of $15 billion per year will be available for 
these States programs. Eligible uses include smoking cessation programs 
and services, school and community-based tobacco education and 
prevention programs, counteradvertising campaigns, expansion of the 
children's health insurance program created in the budget act, and 
other public health purposes.
  Mr. President, it is critical that smoking cessation and addiction 
treatment programs be put into place, and the PHAER Program will do 
that. I hear a great deal of talk about adult choice. Well, most adults 
who smoke are not really choosing to smoke--they are addicted. It is 
not merely a habit--it is an addiction as powerful as the addiction to 
cocaine. And as the price of cigarettes goes up, we should put a system 
in place that will help bring addicted smokers off nicotine. Cessation 
and treatment programs should be available to all Americans, regardless 
of their income.
  Mr. President, these programs will be coordinated at the State level 
and the States will have flexibility to design their own programs. The 
States vary widely in the patterns of tobacco use. Some States have 
youth cigarette consumption rates reaching catastrophic levels; other 
States have a more pressing problem with chewing--or smokeless--
tobacco.
  Mr. President, the remaining 25 percent of PHAER funds--an average of 
$5 billion per year--will be available at the Federal level to expand 
critical research at the National Institutes of Health and the Centers 
for Disease Control. They will also be used to adequately fund tobacco 
control programs at the Food and Drug Administration and to assure that 
tobacco farmers, factory workers, and their communities will not suffer 
economic devastation as we move to reduce smoking. The PHAER Act would 
also contribute to tobacco prevention programs at the Veterans' 
Administration, the Drug Czar's office, and across the world through 
assistance to international programs. PHAER would also fund Medicare 
prevention programs and premium and cost-sharing assistance for low-
income Medicare beneficiaries.

  Mr. President, all of these goals--and many more--can be 
accomplished, and we do not need to ask the tobacco industry's 
permission to do it. We just need to raise the tobacco excise tax and 
use the revenues to promote clear public health objectives.
  Mr. President, the reason we can accomplish these goals is that the 
PHAER fund will raise $494 billion over 25 years--an average of nearly 
$20 billion per year. This estimate is based on the tobacco consumption 
curve developed by the Joint Committee on Taxation. It is a realistic 
calculation of the revenues that will flow from this excise tax boost, 
even given anticipated reductions in tobacco consumption.
  Mr. President, this revenue projection of $494 billion over 25 years 
is much more reliable than the $368.5 billion figure projected by the 
tobacco industry and State attorneys general as a result of their 
proposed settlement. Those numbers are full of holes and deceptions. 
The Federal Trade Commission recently found that the much-publicized 
$368.5 billion figure so widely associated with the proposed tobacco 
settlement failed to take into account the effect of reduced 
consumption of tobacco on the industry's payment obligations under the 
terms of the settlement. A more realistic estimate would peg the 
proceeds of the proposed tobacco settlement closer to $250 billion over 
25 years.
  Mr. President, when you look at real numbers, it is clear that the 
PHAER Act will provide States with considerably more funds than the 
proposal by the tobacco industry and the attorneys general.
  Finally, Mr. President, our bill includes a series of sense-of-the-
Senate provisions. We include them in the bill to reflect our 
recognition that comprehensive tobacco legislation should include a 
broader range of measures than the revenue proposals in PHAER. These 
provisions state that any final legislation should include: stiff 
penalties to serve as an incentive for the industry to stop targeting 
kids, full authority for the Food and Drug Administration to regulate 
tobacco, disclosure of documents, restrictions on secondhand smoke, 
ingredient and constituent disclosure and a ban on the use of Federal 
Government resources

[[Page S11360]]

to weaken nondiscriminatory public health laws abroad.
  Already this year, several key pieces of tobacco legislation have 
been introduced that should be part of congressional action next year 
on tobacco. I have introduced the Tobacco Disclosure and Warning Act, 
dealing with ingredient labeling, the Smoke-Free Environment Act, which 
would restrict secondhand smoke, and the Worldwide Tobacco Disclosure 
Act, which would set out our international trade policy on tobacco. I 
have also cosponsored Senator Durbin's legislation, the No Tobacco for 
Kids Act, which would set up real penalties to stop the industry from 
targeting kids.
  In addition, along with Minnesota State Attorney General Humphrey and 
others, I have called for a full disclosure of hidden documents from 
the industry, including those that have been fraudulently concealed 
under the cloak of the attorney-client privilege. I have asked relevant 
committee chairmen to subpoena documents being held by Minnesota courts 
because Congress must have the unfiltered truth before we legislate on 
such a critical issue.

  Hopefully, Mr. President, the State of Minnesota will do what the 
Congress of the United States has so far failed to do. Minnesota--which 
did not sign on to the supposedly ``global'' tobacco settlement--is 
expected to go to trial in January. That case should bring significant 
information to light--information on tobacco and health that will be 
critical to crafting appropriate legislation in Congress.
  Mr. President, opponents of strengthening the proposed tobacco 
settlement assert the industry will ``walk away'' if any legislation is 
too favorable to the public health. Last time I checked the 
Constitution of the United States, only duly elected U.S. Senators 
could vote in this Chamber, and only Members, staff, and former Members 
could have access to the floor. As far as I'm concerned, the tobacco 
industry can walk anywhere it wants to--but not onto this floor to cast 
votes for or lobby against this legislation.
  Mr. President, all of us were elected to serve the people of our 
individual States and the Nation as a whole. There are few things that 
I could do for the people of New Jersey--especially the young people 
and their parents--that are more critical than preventing children from 
inhaling a deadly and addicting toxin into their body.
  Mr. President, I urge my colleagues to cosponsor the PHAER 
legislation. It is not time to strike a deal with Big Tobacco, but 
rather it is time to make a healthy future real for America's kids.
  Mr. President, I ask unanimous consent that letters I have received 
from public health groups supporting the approach taken in this 
legislation be entered into the Record. This includes a letter from the 
ENACT Coalition, which is signed by the American Medical Association, 
the American Cancer Society, the American Heart Association, American 
Academy of Pediatrics, American College of Preventive Medicine, 
National Association of County and City Health Officials, Partnership 
for Prevention, and the Campaign for Tobacco-Free Kids. In addition, I 
am inserting letters from the American Lung Association and the 
National Association of Counties, which also indicated support for the 
introduction of the PHAER legislation.
  I also ask unanimous consent to insert the bill, a fact sheet, and a 
chart reflecting how many more lives would be saved under the PHAER Act 
as opposed to the tobacco industry's proposed settlement into the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1343

       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 ``Public 
     Health and Education Resource (PHAER) Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

       TITLE I--IMPOSITION OF INCREASED TAXES ON TOBACCO PRODUCTS

Sec. 101. Increase in excise tax rate on tobacco products in addition 
              to such increase contained in the Balanced Budget Act of 
              1997.
Sec. 102. Tax treatment for certain tobacco-related expenses.

                       TITLE II--PHAER TRUST FUND

Sec. 201. Public Health and Education Resource Trust Fund.

     TITLE III--FEDERAL STANDARDS WITH RESPECT TO TOBACCO PRODUCTS

Sec. 301. Federal standards with respect to tobacco products.

                     TITLE IV--SENSE OF THE SENATE

Sec. 401. Sense of the Senate regarding comprehensive tobacco 
              legislation.
       TITLE I--IMPOSITION OF INCREASED TAXES ON TOBACCO PRODUCTS

     SEC. 101. INCREASE IN EXCISE TAX RATE ON TOBACCO PRODUCTS IN 
                   ADDITION TO SUCH INCREASE CONTAINED IN THE 
                   BALANCED BUDGET ACT OF 1997.

       (a) Cigarettes.--Subsection (b) of section 5701 of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``$12 per thousand ($10 per thousand on 
     cigarettes removed during 1991 or 1992);'' in paragraph (1) 
     and inserting ``the applicable rate per thousand determined 
     in accordance with the following table:

``In the case of cigarettes removed during:     The applicable rate is:
  1998.......................................................$12.00....

  1999.......................................................$37.00....

  2000.......................................................$67.00....

  2001.......................................................$92.00....

  2002.....................................................$94.50.;....

     and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Large cigarettes.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     on cigarettes, weighing more than 3 pounds per thousand, the 
     applicable rate per thousand determined in accordance with 
     the following table:

``In the case of cigarettes removed during:     The applicable rate is:
  1998.......................................................$25.20....

  1999.......................................................$77.70....

  2000......................................................$140.70....

  2001......................................................$193.20....

  2002.....................................................$198.45.....

       ``(B) Exception.--On cigarettes more than 6\1/2\ inches in 
     length, at the rate prescribed for cigarettes weighing not 
     more than 3 pounds per thousand, counting each 2\3/4\ inches, 
     or fraction thereof, of the length of each as one 
     cigarette.''
       (b) Cigars.--Subsection (a) of section 5701 of such Code is 
     amended--
       (1) by striking ``$1.125 cents per thousand (93.75 cents 
     per thousand on cigars removed during 1991 or 1992),'' in 
     paragraph (1) and inserting ``the applicable rate per 
     thousand determined in accordance with the following table:


``In the case of cigars removed    The applicable rate is:
 during:
  1998...........................  $1.125 cents
  1999...........................  $3.4687 cents
  2000...........................  $6.2822 cents
  2001...........................  $8.6264 cents
  2002...........................  $8.8588 cents.'';
 


     and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Large cigars.--On cigars, weighing more than 3 pounds 
     per thousand, the applicable percentage of the price for 
     which sold but not more that the applicable rate per thousand 
     determined in accordance with the following table:


In the case of cigars removed     The applicable      The applicable
 during:.                          percentage is:.     rate is:
   1998.........................      12.750%.......      $30.00
   1999.........................      39.312%.......      $92.50
   2000.........................      71.189%.......     $167.50
   2001.........................      97.753%.......     $230.00
   2002.........................     100.407%.......     $236.25.''
 


       (c) Cigarette Papers.--Subsection (c) of section 5701 of 
     such Code is amended to read as follows:
       ``(c) Cigarette Papers.--
       ``(1) In general.--Except as provided in paragraph (2), on 
     each book or set of cigarette papers containing more than 25 
     papers, manufactured in or imported into the United States, 
     there shall be imposed a tax of the applicable rate for each 
     50 papers or fractional part thereof as determined in 
     accordance with the following table:


[[Page S11361]]



``In the case of cigarette papers
 removed during:                   The applicable rate is:
    1998.........................  0.75 cent
    1999.........................  2.31 cents
    2000.........................  4.18 cents
    2001.........................  5.74 cents
    2002.........................  5.91 cents.
 

       ``(2) Exception.--If cigarette papers measure more than 
     6\1/2\ inches in length, such cigarette papers shall be 
     taxable at the rate prescribed, counting each 2\3/4\ inches, 
     or fraction thereof, of the length of each as one cigarette 
     paper.''
       (d) Cigarette Tubes.--Subsection (d) of section 5701 of 
     such Code is amended to read as follows:
       ``(d) Cigarette Tubes.--
       ``(1) In general.--Except as provided in paragraph (2), on 
     cigarette tubes, manufactured in or imported into the United 
     States, there shall be imposed a tax of the applicable rate 
     for each 50 tubes or fractional part thereof as determined in 
     accordance with the following table:

``In the case of cigarette tubes   The applicable rate is:
 removed during:
    1998.........................  1.50 cents
    1999.........................  4.62 cents
    2000.........................  8.39 cents
    2001.........................  11.53 cents
    2002.........................  11.82 cents.
 

       ``(2) Exception.--If cigarette tubes measure more than 6\1/
     2\ inches in length, such cigarette tubes shall be taxable at 
     the rate prescribed, counting each 2\3/4\ inches, or fraction 
     thereof, of the length of each as one cigarette tube.''
       (e) Smokeless Tobacco.--Paragraphs (1) and (2) of 
     subsection (e) of section 5701 of such Code are is amended to 
     read as follows:
       ``(1) Snuff.--On snuff, the applicable rate per pound 
     determined in accordance with the following table (and a 
     proportionate tax at the like rate on all fractional parts of 
     a pound):

``In the case of snuff removed     The applicable rate is:
 during:
    1998.........................  36 cents
    1999.........................  $1.11
    2000.........................  $2.01
    2001.........................  $2.76
    2002.........................  $2.835 cents.
 

       ``(2) Chewing tobacco.--On chewing tobacco, the applicable 
     rate per pound determined in accordance with the following 
     table (and a proportionate tax at the like rate on all 
     fractional parts of a pound):

``In the case of chewing tobacco   The applicable rate is:
 removed during:
    1998.........................  12 cents
    1999.........................  37 cents
    2000.........................  67 cents
    2001.........................  92 cents
    2002.........................  94.5 cents.''
 

       (f) Pipe Tobacco.--Subsection (f) of section 5701 of such 
     Code is amended to read as follows:
       ``(f) Pipe Tobacco.--On pipe tobacco, manufactured in or 
     imported into the United States, there shall be imposed a tax 
     of the applicable rate per pound determined in accordance 
     with the following table (and a proportionate tax at the like 
     rate on all fractional parts of a pound):


``In the case of pipe tobacco      The applicable rate is:
 removed during:
  1998...........................  67.5 cents
  1999...........................  $2.0812 cents
  2000...........................  $3.7705 cents
  2001...........................  $5.1774 cents
  2002...........................  $5.3157 cents.''
 


       (g) Imposition of Excise Tax on Manufacture or Importation 
     of Roll-Your-Own Tobacco.--
       (1) In general.--Section 5701 of such Code (relating to 
     rate of tax) is amended by redesignating subsection (g) as 
     subsection (h) and by inserting after subsection (f) the 
     following new subsection:
       ``(g) Roll-Your-Own Tobacco.--On roll-your-own tobacco, 
     manufactured in or imported into the United States, there 
     shall be imposed a tax of the applicable rate per pound 
     determined in accordance with the following table (and a 
     proportionate tax at the like rate on all fractional parts of 
     a pound):


``In the case of roll-your-own     The applicable rate is:
 tobacco removed during:
  1998...........................  67.5 cents
  1999...........................  $2.0812 cents
  2000...........................  $3.7705 cents
  2001...........................  $5.1774 cents
  2002...........................  $5.3157 cents.''
 

       (2) Roll-your-own tobacco.--Section 5702 of such Code 
     (relating to definitions) is amended by adding at the end the 
     following new subsection:
       ``(p) Roll-Your-Own Tobacco.--The term `roll-your-own 
     tobacco' means any tobacco which, because of its appearance, 
     type, packaging, or labeling, is suitable for use and likely 
     to be offered to, or purchased by, consumers as tobacco for 
     making cigarettes.''
       (3) Technical amendments.--
       (A) Subsection (c) of section 5702 of such Code is amended 
     by striking ``and pipe tobacco'' and inserting ``pipe 
     tobacco, and roll-your-own tobacco''.
       (B) Subsection (d) of section 5702 of such Code is 
     amended--
       (i) in the material preceding paragraph (1), by striking 
     ``or pipe tobacco'' and inserting ``pipe tobacco, or roll-
     your-own tobacco'', and
       (ii) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) a person who produces cigars, cigarettes, smokeless 
     tobacco, pipe tobacco, or roll-your-own tobacco solely for 
     the person's own personal consumption or use, and''.
       (C) The chapter heading for chapter 52 of such Code is 
     amended to read as follows:

    ``CHAPTER 52--TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES''.

       (D) The table of chapters for subtitle E of such Code is 
     amended by striking the item relating to chapter 52 and 
     inserting the following new item:

``Chapter 52. Tobacco products and cigarette papers and tubes.''

       (h) Inflation Adjustment of Rates and Floor Stocks Taxes.--
     Section 5701 of such Code, as amended by subsection (g), is 
     amended by redesignating subsection (h) as subsection (j) and 
     by inserting after subsection (g) the following:
       ``(h) Inflation adjustment.--In the case of a calendar year 
     after 2002, the dollar amount contained in the table in each 
     of the preceding subsections (and the percentage contained in 
     the table contained in subsection (b)(2)) applicable to the 
     preceding calendar year (after the application of this 
     subsection) shall be increased by an amount equal to--
       ``(1) such dollar amount (or percentage), multiplied by
       ``(2) the greatest of--
       ``(A) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting `the 
     second preceding calendar year' for `calendar year 1992' in 
     subparagraph (B) thereof,
       ``(B) the medical consumer price index for such calendar 
     year determined in the same manner as the adjustment 
     described in subparagraph (A), or
       ``(C) 3 percent.
       ``(j) Floor Stocks Taxes.--
       ``(1) Imposition of tax.--On tobacco products and cigarette 
     papers and tubes manufactured in or imported into the United 
     States which are removed before any 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 any preceding 
     subsection of this section on the article if the article had 
     been removed on such date, over
       ``(B) the prior tax (if any) imposed under such subsection 
     on such article.
       ``(2) Liability for tax and method of payment.--
       ``(A) Liability for tax.--A person holding cigarettes on 
     any tax increase date, to which any tax imposed by paragraph 
     (1) applies shall be liable for such tax.
       ``(B) Method of payment.--The tax imposed by paragraph (1) 
     shall be paid in such manner as the Secretary shall prescribe 
     by regulations.
       ``(C) Time for payment.--The tax imposed by paragraph (1) 
     shall be paid on or before April 1 following any tax increase 
     date.
       ``(3) Articles in foreign trade zones.--Notwithstanding the 
     Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any 
     other provision of law, any article which is located in a 
     foreign trade zone on any tax increase date, shall be subject 
     to the tax imposed by paragraph (1) if--
       ``(A) internal revenue taxes have been determined, or 
     customs duties liquidated, with respect to such article 
     before such date pursuant to a request made under the 1st 
     proviso of section 3(a) of such Act, or
       ``(B) such article is held on such date under the 
     supervision of a customs officer pursuant to the 2d proviso 
     of such section 3(a).
       ``(4) Tax increase date.--The term ``tax increase date'' 
     means January 1.
       ``(5) Controlled groups.--Rules similar to the rules of 
     section 5061(e)(3) shall apply for purposes of this 
     subsection.
       ``(6) Other laws applicable.--All provisions of law, 
     including penalties, applicable with respect to the taxes 
     imposed by the preceding subsections of this section shall, 
     insofar as applicable and not inconsistent with the 
     provisions of this subsection, apply to the floor stocks 
     taxes imposed by paragraph (1), to the same extent as if such 
     taxes were imposed by such subsections. The Secretary may 
     treat any person who bore the ultimate burden of the tax 
     imposed by paragraph (1) as the person to whom a credit or 
     refund under such provisions may be allowed or made.''
       (i) Modifications of Certain Tobacco Tax Provisions.--

[[Page S11362]]

       (1) Exemption for exported tobacco products and cigarette 
     papers and tubes to apply only to articles marked for 
     export.--
       (A) Subsection (b) of section 5704 of such Code is amended 
     by adding at the end the following new sentence: ``Tobacco 
     products and cigarette papers and tubes may not be 
     transferred or removed under this subsection unless such 
     products or papers and tubes bear such marks, labels, or 
     notices as the Secretary shall by regulations prescribe.''
       (B) Section 5761 of such Code is amended by redesignating 
     subsections (c) and (d) as subsections (d) and (e), 
     respectively, and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Sale of Tobacco Products and Cigarette Papers and 
     Tubes for Export.--Except as provided in subsections (b) and 
     (d) of section 5704--
       ``(1) every person who sells, relands, or receives within 
     the jurisdiction of the United States any tobacco products or 
     cigarette papers or tubes which have been labeled or shipped 
     for exportation under this chapter,
       ``(2) every person who sells or receives such relanded 
     tobacco products or cigarette papers or tubes, and
       ``(3) every person who aids or abets in such selling, 
     relanding, or receiving,

     shall, in addition to the tax and any other penalty provided 
     in this title, be liable for a penalty equal to the greater 
     of $1,000 or 5 times the amount of the tax imposed by this 
     chapter. All tobacco products and cigarette papers and tubes 
     relanded within the jurisdiction of the United States, and 
     all vessels, vehicles, and aircraft used in such relanding or 
     in removing such products, papers, and tubes from the place 
     where relanded, shall be forfeited to the United States.''
       (C) Subsection (a) of section 5761 of such Code is amended 
     by striking ``subsection (b)'' and inserting ``subsection (b) 
     or (c)''.
       (D) Subsection (d) of section 5761 of such Code, as 
     redesignated by subparagraph (B), is amended by striking 
     ``The penalty imposed by subsection (b)'' and inserting ``The 
     penalties imposed by subsections (b) and (c)''.
       (E)(i) Subpart F of chapter 52 of such Code is amended by 
     adding at the end the following new section:

     ``SEC. 5754. RESTRICTION ON IMPORTATION OF PREVIOUSLY 
                   EXPORTED TOBACCO PRODUCTS.

       ``(a) In General.--Tobacco products and cigarette papers 
     and tubes previously exported from the United States may be 
     imported or brought into the United States only as provided 
     in section 5704(d). For purposes of this section, section 
     5704(d), section 5761, and such other provisions as the 
     Secretary may specify by regulations, references to 
     exportation shall be treated as including a reference to 
     shipment to the Commonwealth of Puerto Rico.
       ``(b) Cross Reference.--

  ``For penalty for the sale of tobacco products and cigarette papers 
and tubes in the United States which are labeled for export, see 
section 5761(c).''

       (ii) The table of sections for subpart F of chapter 52 of 
     such Code is amended by adding at the end the following new 
     item:

``Sec. 5754. Restriction on importation of previously exported tobacco 
              products.''

       (2) Importers required to be qualified.--
       (A) Sections 5712, 5713(a), 5721, 5722, 5762(a)(1), and 
     5763 (b) and (c) of such Code are each amended by inserting 
     ``or importer'' after ``manufacturer''.
       (B) The heading of subsection (b) of section 5763 of such 
     Code is amended by inserting ``Qualified Importers,'' after 
     ``Manufacturers,''.
       (C) The heading for subchapter B of chapter 52 of such Code 
     is amended by inserting ``and Importers'' after 
     ``Manufacturers''.
       (D) The item relating to subchapter B in the table of 
     subchapters for chapter 52 of such Code is amended by 
     inserting ``and importers'' after ``manufacturers''.
       (3) Books of 25 or fewer cigarette papers subject to tax.--
     Subsection (c) of section 5701 of such Code is amended by 
     striking ``On each book or set of cigarette papers containing 
     more than 25 papers,'' and inserting ``On cigarette 
     papers,''.
       (4) Storage of tobacco products.--Subsection (k) of section 
     5702 of such Code is amended by inserting ``under section 
     5704'' after ``internal revenue bond''.
       (5) Authority to prescribe minimum manufacturing activity 
     requirements.--Section 5712 of such Code is amended by 
     striking ``or'' at the end of paragraph (1), by redesignating 
     paragraph (2) as paragraph (3), and by inserting after 
     paragraph (1) the following new paragraph:
       ``(2) the activity proposed to be carried out at such 
     premises does not meet such minimum capacity or activity 
     requirements as the Secretary may prescribe, or''.
       (j) Repeal of Duplicative Provisions.--Section 9302 (other 
     than subsection (i)(2)) of the Balanced Budget Act of 1997 is 
     repealed.
       (k) Effective Date.--The amendments and repeal made by this 
     section shall apply to articles removed (as defined in 
     section 5702(k) of the Internal Revenue Code of 1986, as 
     amended by this section) after December 31, 1997.

     SEC. 102. TAX TREATMENT FOR CERTAIN TOBACCO-RELATED EXPENSES.

       (a) In General.--Section 275(a) of the Internal Revenue 
     Code of 1986 (relating to certain taxes) is amended by 
     inserting after paragraph (6) the following:
       ``(7) Taxes imposed by chapter 52, but only in an amount 
     determined at rates in excess of the rates of such taxes 
     effective in 1998.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.
                       TITLE II--PHAER TRUST FUND

     SEC. 201. PUBLIC HEALTH AND EDUCATION RESOURCE TRUST FUND.

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

     ``SEC. 9512. PUBLIC HEALTH AND EDUCATION RESOURCE TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Public Health and Education Resource Trust Fund' (hereafter 
     referred to in this section as the `PHAER Trust Fund'), 
     consisting of such amounts as may be appropriated or 
     transferred to the Trust Fund as provided in this section or 
     section 9602(b).
       ``(b) Transfers to Trust Fund.--There is hereby 
     appropriated to the Trust Fund an amount equivalent to the 
     net increase in revenues received in the Treasury 
     attributable to the amendments made by section 2 of the 
     Public Health and Education Resource (PHAER) Act as estimated 
     by the Secretary.
       ``(c) Obligations From Trust Fund.--
       ``(1) State programs.--
       ``(A) In general.--An applicable percentage of 75 percent 
     of the amounts available in the Trust Fund in a fiscal year 
     shall be distributed by the Secretary of Health and Human 
     Services to each State meeting the requirements of 
     subparagraphs (C) and (D) to be used by such State and by 
     local government entities within such State in such fiscal 
     year and the succeeding fiscal year in the following manner:
       ``(i) Not less than 10 nor more than 30 percent of such 
     amounts to State and local school and community-based tobacco 
     education, prevention, and treatment programs.
       ``(ii) Not less than 10 nor more than 30 percent of such 
     amounts to State and local smoking cessation programs and 
     services, including pharmacological therapies.
       ``(iii) Not less than 10 nor more than 30 percent of such 
     amounts to State and local counter advertising programs.
       ``(iv) Not less than 10 nor more than 25 percent of such 
     amounts to the State Children's Health Insurance Program 
     under title XXI of the Social Security Act (42 U.S.C. 1397aa 
     et seq.) to be in addition to the amount appropriated under 
     section 2104 of such Act.
       ``(v) Not less than 5 nor more than 10 percent of such 
     amounts to--

       ``(I) the Special Supplemental Food Program for Women, 
     Infants, and Children under section 17 of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786) to be in addition to the amount 
     appropriated under such section, or
       ``(II) the Maternal and Child Health Services Block Grant 
     program under title V of the Social Security Act (42 U.S.C. 
     701 et seq.) to be in addition to the amount appropriated 
     under such title, or
       ``(III) a combination of both programs as determined by the 
     State.

       ``(vi) Not less than 1 nor more than 3 percent of such 
     amounts to the American Stop Smoking Intervention Study for 
     Cancer Prevention (ASSIST) program for such State or other 
     State or local community-based tobacco control programs.
       ``(vii) Not more than 5 percent of such amounts to a State 
     general health care block grant program.
       ``(B) Allocation rules.--For purposes of subparagraph (A), 
     the applicable percentage for any State is determined in 
     accordance with the following table:

State                                             Applicable Percentage
    Alabama................................................1.270390....

    Alaska.................................................0.241356....

    Arizona................................................1.163883....

    Arkansas...............................................0.751011....

    California.............................................8.805641....

    Colorado...............................................1.054018....

    Connecticut............................................1.596937....

    Delaware...............................................0.227018....

    District of Columbia...................................0.534487....

    Florida................................................3.590667....

    Georgia................................................2.007112....

    Hawaii.................................................0.642527....

    Idaho..................................................0.257835....

    Illinois...............................................4.272898....

    Indiana................................................1.714594....

    Iowa...................................................0.758686....

    Kansas.................................................0.762230....

    Kentucky...............................................1.875439....

    Louisiana..............................................1.916886....

    Maine..................................................0.870740....

    Maryland...............................................2.051849....

    Massachusetts..........................................3.700447....

    Michigan...............................................4.431824....

    Minnesota..............................................2.474364....

    Mississippi............................................0.851450....

    Missouri...............................................1.659116....

    Montana................................................0.335974....

    Nebraska...............................................0.445356....

    Nevada.................................................0.307294....

    New Hampshire..........................................0.552048....

    New Jersey.............................................3.494187....

    New Mexico.............................................0.465816....

    New York...............................................4.529380....

    North Carolina.........................................2.097625....

    North Dakota...........................................0.250758....

    Ohio...................................................4.690156....

    Oklahoma...............................................0.841972....

    Oregon.................................................1.092920....

    Pennsylvania...........................................5.233270....

    Rhode Island...........................................0.821727....

    South Carolina.........................................0.883628....

    South Dakota...........................................0.234849....

    Tennessee..............................................2.479873....

[[Page S11363]]

    Texas..................................................4.451382....

    Utah...................................................0.330016....

    Vermont................................................0.370244....

    Virginia...............................................1.373860....

    Washington.............................................1.794612....

    West Virginia..........................................1.003660....

    Wisconsin..............................................2.098696....

    Wyoming................................................0.122405....

    American Samoa.........................................0.008681....

    N. Mariana Islands.....................................0.001519....

    Guam...................................................0.006506....

    U.S. Virgin Islands....................................0.004804....

    Puerto Rico............................................0.193175....

       ``(C) State plans for certain allocations.--Each State, 
     working in collaboration with local government entities, 
     shall submit a plan to the Secretary of Health and Human 
     Services for approval for an allocation under the programs 
     described in subparagraph (A), specifying the percentage 
     share for each program. Each State plan shall provide for an 
     equitable allocation of funds to local government entities, 
     specifically in relation to local government tobacco-related 
     health care needs and anti-tobacco education, prevention, and 
     control activities. If a State fails to provide any component 
     of a State plan with respect to any program allocation or if 
     the Secretary of Health and Human Services disapproves any 
     such component, the Secretary may make the allocation for 
     such program to 1 or more local government or private 
     entities located in such State pursuant to plans submitted by 
     such entities and approved by the Secretary.
       ``(D) Prohibition of supplantation of state funds.--Each 
     State shall demonstrate to the satisfaction of the Secretary 
     of Health and Human Services that an allocation to a State 
     under a program described in subparagraph (A) in any fiscal 
     year shall be used to supplement, not supplant, existing 
     funding for such program.
       ``(2) Federal programs.--
       ``(A) In general.--Twenty-five percent of the amounts 
     available in the Trust Fund in a fiscal year shall be 
     distributed in the following manner:
       ``(i) 10 percent of such amounts to the Office of the 
     Commissioner of Food and Drug Administration to be allocated 
     at the Commissioner's discretion to conduct tobacco control 
     activities.
       ``(ii) 25 percent of such amounts to the Office of the 
     Secretary of Agriculture to be allocated at the Secretary's 
     discretion to protect the financial well-being of tobacco 
     farmers, their families, and their communities.
       ``(iii) 20 percent of such amounts to be allocated at the 
     discretion of the Secretary of Health and Human Services to--

       ``(I) the Office of the Director of the National Institutes 
     of Health to be allocated at the Director's discretion to 
     conduct disease research, and
       ``(II) the Office of the Director of the Centers for 
     Disease Control and Prevention to be allocated at the 
     Director's discretion to decrease smoking.

       ``(iv) 20 percent of such amounts to the Office of the 
     Secretary of Health and Human Services to be allocated at the 
     Secretary's discretion--

       ``(I) to conduct prevention programs resulting from the 
     study under section 4108 of the Balanced Budget Act of 1997, 
     and
       ``(II) to increase the Federal payment for the coverage of 
     qualified medicare beneficiaries under section 
     1902(a)(10)(E)(i) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(E)(i)) and specified low-income medicare 
     beneficiaries under section 1902(a)(10)(E)(iii) of such Act 
     (42 U.S.C. 1396a(a)(10)(E)(iii)).

       ``(v) 20 percent of such amounts to fund a national counter 
     advertising program.
       ``(vi) 2 percent of such amounts to the Office of the 
     Administrator of the Agency for International Development to 
     be allocated at the Administrator's discretion to strengthen 
     international efforts to control tobacco.
       ``(vii) 2 percent of such amounts to the Office of the 
     Director of the Office of National Drug Control Policy to be 
     allocated at the Director's discretion to conduct tobacco 
     education and prevention programs.
       ``(viii) 1 percent of such amounts to the Office of the 
     Secretary of Veterans Affairs to be allocated at the 
     Secretary's discretion to conduct tobacco education, 
     intervention, and outreach programs.
       ``(B) Grants and contracts fully funded in first year.--
     With respect to any grant or contract funded by amounts 
     distributed under paragraph (1), the full amount of the total 
     obligation of such grant or contract shall be funded in the 
     first year of such grant or contract, and shall remain 
     available until expended.''
       (b) Conforming Amendment.--The table of sections for such 
     subchapter A is amended by adding at the end the following 
     new item:

``Sec. 9512. Public Health and Education Resource Trust Fund.''
     TITLE III--FEDERAL STANDARDS WITH RESPECT TO TOBACCO PRODUCTS

     SEC. 301. FEDERAL STANDARDS WITH RESPECT TO TOBACCO PRODUCTS.

       (a) Cigarettes.--Subsection (b) of section 5 of the Federal 
     Cigarette Labeling And Advertising Act (15 U.S.C. 1334(b)) is 
     repealed.
       (b) Smokeless Tobacco.--Subsection (b) of section 7 of the 
     Comprehensive Smokeless Tobacco Health Education Act of 1986 
     (15 U.S.C. 4406(b)) is repealed.
                     TITLE IV--SENSE OF THE SENATE

     SEC. 401. SENSE OF THE SENATE REGARDING COMPREHENSIVE TOBACCO 
                   LEGISLATION.

       It is the sense of the Senate that any final comprehensive 
     tobacco legislation funded by the PHAER Trust Fund under 
     section 9512 of the Internal Revenue Code of 1986, as added 
     by section 201 of this Act, must include, at the very least, 
     the following additional elements:
       (1) Stiff penalties that give the tobacco industry the 
     strongest possible incentive to stop targeting children.
       (2) Full authority for the Food and Drug Administration to 
     regulate tobacco like any other drug or device with 
     sufficient flexibility to meet changing circumstances.
       (3) Codification of the Food and Drug Administration's 
     initiative to prevent teen smoking and the imposition of 
     stronger restrictions on youth access and advertising 
     consistent with the United States Constitution.
       (4) Broad disclosure of tobacco industry documents, 
     including documents that have been hidden under false claims 
     of the attorney-client privilege.
       (5) Efforts to ensure that the tobacco industry stops 
     marketing and promoting tobacco to children, including 
     comprehensive corporate compliance programs.
       (6) Elimination of secondhand tobacco smoke in public and 
     private buildings in which 10 or more people regularly enter.
       (7) Disclosure of the ingredients and constituents of all 
     tobacco products to the public and the imposition of more 
     prominent health warning labels on packaging to send a strong 
     and clear message to children about the dangers of tobacco 
     use.
       (8) A prohibition on the use of Federal Government 
     resources to weaken nondiscriminatory public health laws or 
     promote tobacco sales abroad.
                                  ____


          The Public Health and Education Resource [PHAER] Act

       PHAER would raise the price of cigarettes to a level that 
     would decrease youth smoking by half.
       PHAER would place a $1.50 Public Health and Education 
     Resource (PHAER) per-pack fee on cigarettes and a comparable 
     fee on other tobacco products.
       The PHAER fee would be phased in by 50-cent increments over 
     three years.
       In the fourth year, the PHAER fee would be indexed for 
     inflation to ensure that youth smoking does not rise again 
     due to inflationary effects. This index will be based on the 
     CPI, the Medical CPI or an increase of 3%, whichever is 
     greater.
       The PHAER fee will raise approximately $494 billion over 25 
     years (using the tobacco consumption projections of the Joint 
     Committee on Taxation), an average of almost $20 billion per 
     year. Of these funds:
       75% (an average of $15 billion per year) will be 
     distributed at the State level for: Smoking cessation 
     programs and services; school and community-based tobacco 
     education and prevention programs; State-level counter-
     advertising campaigns; ASSIST and similar community-based 
     tobacco control programs; expansion of the Children's Health 
     Insurance Program created in the 1977 Budget Reconciliation 
     Act; early childhood development programs through the 
     Maternal Child Health Block Grant and WIC; and other 
     appropriate public health uses.
       25% (an average of $5 billion per year) will be distributed 
     at the Federal level for: Research and prevention programs at 
     NIH and CDC; FDA jurisdiction over tobacco products; USDA 
     programs to assist tobacco farmers, their families and their 
     communities; a national counter-advertising campaign; 
     Medicare prevention programs and premium and cost-sharing 
     assistance for low-income Medicare beneficiaries; 
     International Programs to decrease worldwide tobacco-related 
     illness; the Drug Czar to conduct tobacco education and 
     prevention programs; and the VA to conduct tobacco education, 
     intervention and outreach programs.
                                  ____

                                         Effective National Action


                                           To Control Tobacco,

                                 Washington, DC, October 28, 1997.
     Hon. Frank R. Lautenberg,
     U.S. Senate.
     Hon. James V. Hansen,
     House of Representatives.
       Dear Senator and Congressman: On behalf of our millions of 
     public health officials and professionals, health care 
     providers and volunteer members of ENACT, the coalition for 
     Effective National Action To Control Tobacco, we applaud the 
     introduction of the Public Health and Education Resource 
     (PHAER) Act.
       We particularly want to thank you for your leadership in 
     reaffirming what the members of the coalition have said in 
     the ENACT consensus statement regarding increases in the cost 
     of tobacco products. Experts in the area of tobacco control 
     agree that significant increases in the cost per pack deter 
     children and others from taking up the use of tobacco. The 
     ENACT coalition believes strongly that such an increase in 
     the federal excise tax is essential.
       In addition to providing for a $1.50 excise tax per pack, 
     indexed to inflation, and the nondeductibility of those new 
     taxes, you have addressed many essential public health 
     programs. Adequate funding of these programs is integral to 
     comprehensive, sustainable, effective, well-funded tobacco 
     control legislation. We look forward to working with you and 
     the supporters of your legislation to get action on tobacco 
     now.
           Signed,

[[Page S11364]]

     American Academy of Pediatrics.
     American Cancer Society.
     American College of Preventive Medicine.
     American Heart Association.
     American Medical Association.
     Campaign for Tobacco Free Kids.
     National Association of County and City Health Officials.
     Partnership for Prevention.
                                  ____



                                    American Lung Association,

                                 Washington, DC, October 23, 1997.
     Hon. Frank Lautenberg,
     U.S. Senate,
     Washington, DC.
       Dear Senator Lautenberg: The American Lung Association 
     commends you on the introduction of the Public Health and 
     Education Resource Act (PHAER). As you know, the American 
     Lung Association has pursued a significant price increase in 
     the federal cigarette excise tax for many years.
       Tobacco use is the nation's leading preventable cause of 
     death and disability. Each year an estimated 419,000 people 
     die from diseases directly caused from smoking. Three 
     thousand children start smoking each day in this country. One 
     thousand of them will eventually die from a smoking-related 
     disease. Smoking costs this nation at least $97.2 billion 
     annually. Of that total cost, $22 billion is paid by the 
     Federal government. Over the next 20 years, Medicare alone 
     will spend an estimated $800 billion to care for people with 
     smoking related illnesses.
       Reducing tobacco consumption among our nation's youth has 
     long been a goal of the American Lung Association. The bulk 
     of academic research indicates that a sharp and sudden 
     increase in the price of tobacco products has the effect of 
     lowering smoking rates among teens. Raising the price per 
     pack by at least $1.50 or more would help achieve that 
     desired outcome.
       The American Lung Association applauds your continued 
     efforts and leadership in reducing tobacco consumption, 
     especially among our youth, and we look forward to working 
     with you as this tobacco-related legislation progresses 
     through Congress.
           Sincerely,
                                                     Fran DuMelle,
     Deputy Managing Director.
                                  ____



                             National Association of Counties,

                                 Washington, DC, October 23, 1997.
     Hon. Frank R. Lautenberg,
     U.S. Senate, Hart Senate Office Building, Washington, DC
       Dear Senator Lautenberg: The National Association of 
     Counties (NACo) is pleased to support your bill, the Public 
     Health and Education Resource (PHAER) Act. The legislation is 
     a strong step forward for public health activities related to 
     tobacco and helps focus the congressional debate on 
     legislative language rather than broad concepts.
       We particularly support your recognition of the role of 
     counties and other local governments in the provision of 
     health services. Counties, in collaboration with states, will 
     be key to the success of the public health programs outlined 
     in the PHAER trust fund, including tobacco education and 
     prevention, smoking cessation, and counter advertising. NACo 
     appreciates your work to ensure a local government role in 
     the planning and implementation of the trust fund's health 
     activities.
       Thank you again for your leadership on this issue. Dan Katz 
     of your staff has been very responsive to our concerns. NACo 
     looks forward to working with you and your staff as tobacco 
     legislation moves forward.
           Very Truly Yours,

                                                Randy Johnson,

                                                  President, NACo,
     Hennepin County Commissioner.
                                  ____


      PHAER: REDUCTION IN YOUTH SMOKING AND INCREASE IN LIVES SAVED
------------------------------------------------------------------------
                                   Youth                     Additional
                                  smoking        Youth      lives saved
                                 reduction      smoking     under $1.50-
            State                  under       reduction    per-pack tax
                                Industry/AG  under $1.50-  vs. Industry/
                                settlement   per-pack tax  AG settlement
                                 (percent)     (percent)        \1\
------------------------------------\1\-----------\1\-------------------
Alabama......................          25.1          60.6        29,666
Alaska.......................          19.6          47.3         4,996
Arizona......................          18.9          45.6        26,359
Arkansas.....................          23.1          55.9        16,351
California...................          20.9          50.6       137,480
Colorado.....................          24.1          58.2        29,680
Connecticut..................          20.0          48.5        15,962
Delaware.....................          24.3          58.9         5,725
D.C..........................          18.2          44.0         1,272
Florida......................          22.9          55.3        96,439
Georgia......................          26.3          63.7        48,981
Hawaii.......................          17.2          41.7         5,051
Idaho........................          22.8          55.0         7,875
Illinois.....................          21.0          50.9        77,720
Indiana......................          26.8          64.9        53,553
Iowa.........................          22.1          53.6        16,846
Kansas.......................          24.5          59.2        17,103
Kentucky.....................          28.7          69.4        35,762
Louisiana....................          25.1          60.6        37,716
Maine........................          22.0          53.3         9,757
Maryland.....................          21.9          53.0        26,659
Massachusetts................          17.1          41.3        25,617
Michigan.....................          17.9          43.3        58,614
Minnesota....................          19.3          46.7        26,554
Mississippi..................          24.8          59.9        17,165
Missouri.....................          25.7          62.1        43,386
Montana......................          25.4          61.4         5,416
Nebraska.....................          22.6          54.7        11,396
Nevada.......................          21.0          50.9         9,434
New Hampshire................          23.6          57.2         7,979
New Jersey...................          21.5          51.9        41,304
New Mexico...................          23.8          57.5        11,262
New York.....................          18.8          45.4       100,545
North Carolina...............          27.5          66.6        64,751
North Dakota.................          21.6          52.2         3,758
Ohio.........................          25.1          60.6       101,429
Oklahoma.....................          24.3          58.9        22,047
Oregon.......................          21.1          51.1        18,402
Pennsylvania.................          23.6          57.2        92,073
Rhode Island.................          19.3          46.7         6,433
South Carolina...............          27.2          65.8        25,691
South Dakota.................          23.0          55.6         4,774
Tennessee....................          26.0          62.9        38,859
Texas........................          22.0          53.3       115,888
Utah.........................          22.5          54.4        11,127
Vermont......................          20.7          50.1         3,633
Virginia.....................          26.2          63.3        50,287
Washington...................          15.8          38.2        24,163
West Virginia................          26.0          62.9        14,219
Wisconsin....................          20.8          50.4        34,603
Wyoming......................          25.5          61.7         3,671
                              ------------------------------------------
      Total..................           n/a           n/a     1,695,433
------------------------------------------------------------------------
\1\ Source: American Cancer Society, October 1997.



                          ____________________