[Congressional Record Volume 144, Number 72 (Friday, June 5, 1998)]
[Senate]
[Pages S5702-S5731]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S5702]]


                          AMENDMENTS SUBMITTED

                                 ______
                                 

        NATIONAL TOBACCO POLICY AND YOUTH SMOKING REDUCTION ACT

                                 ______
                                 

                      WELLSTONE AMENDMENT NO. 2458

  (Ordered to lie on the table.)
  Mr. Wellstone submitted an amendment intended to be proposed by him 
the bill (S. 1415) to reform and restructure the processes b which 
tobacco products are manufactured, marketed, and distributed, to 
prevent the use of tobacco products by minors, to redress the advers 
health effects of tobacco use, and for other purposes; as follows:

       At the appropriate place in title XI, insert the following:

     SEC. ____. SALE, DISTRIBUTION, AND ADVERTISING OF TOBACCO 
                   PRODUCTS IN FOREIGN COUNTRIES.

       (a) Amendment to Chapter VIII.--Chapter VIII of the Federal 
     Food, Drug, and Cosmetic Act is amended by adding at the end 
     the following:

     ``SEC. 804. SALE, DISTRIBUTION, AND ADVERTISING OF TOBACCO 
                   PRODUCTS IN FOREIGN COUNTRIES.

       ``(a) Regulations.--Not later than 2 years after the date 
     of the enactment of this section, the Secretary shall 
     promulgate regulations to--
       ``(1) prohibit domestic concerns from--
       ``(A) selling or distributing tobacco products in a foreign 
     country to children; or
       ``(B) advertising or promoting tobacco products in a 
     foreign country in a manner that appeals to children;
       ``(2) require domestic concerns to ensure that any person 
     under the control of a domestic concern does not engage in 
     conduct that would be prohibited under this section if 
     engaged in by the domestic concern; and
       ``(3) require domestic concerns to take all feasible 
     measures to ensure that tobacco products bearing a brand name 
     controlled or used by a domestic concern are not sold, 
     distributed, advertised, or promoted in a manner that would 
     be prohibited under this section if engaged in by a domestic 
     concern.
       ``(b) Interpretation.--For purposes of this section, 
     advertising or promoting tobacco products in a manner that 
     would not be lawful under this Act if it occurred in the 
     United States shall be deemed to be advertising or promotion 
     that appeals to children.
       ``(c) Definition.--The term `domestic concern' means--
       ``(1) any individual who is a citizen, national, or 
     resident of the United States; and
       ``(2) any corporation, partnership, association, joint-
     stock company, business trust, unincorporated organization, 
     or sole proprietorship which has its principal place of 
     business in the United States or which is organized under the 
     laws of a State of the United States or a territory, 
     possession, or commonwealth of the United States.''.
       (b) Enforcement.--Section 301 of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C 331) is amended by adding at the 
     end the following:
       ``(bb) The violation of any requirement under section 
     804.''.
                                 ______
                                 

                SESSIONS (AND OTHERS) AMENDMENT NO. 2459

  (Ordered to lie on the table.)
  Mr. SESSIONS (for himslf, Mr. Jeffords, Mr. Enzi, and Mr. Faircloth) 
submitted an amendment intended to be proposed by them to the bill, S. 
1415, supra; as follows:

       Beginning on page 435, strike line 12 and all that follows 
     through line 4 on page 442, and insert the following:

     SEC. 1413. NATIONAL TOBACCO COMPENSATION PROGRAM.

       (a) Administration by Secretary.--The Secretary of Health 
     and Human Services (referred to in this section as the 
     ``Secretary'') shall administer the Voluntary National 
     Tobacco Compensation Program (referred to in this section as 
     the ``Program'') established under this section.
       (b) Voluntary Payments by Industry.--
       (1) Certain tobacco product manufacturers.--The amount of 
     the voluntary contributions described in this subsection for 
     each year during which the Program is in existence shall 
     equal, in the aggregate, $8,000,000,000, to be apportioned as 
     follows:
       (A) Phillip Morris Incorporated--65.8 percent.
       (B) Brown and Williamson Tobacco Corporation--17.3 percent.
       (C) Lorillard Tobacco Company--7.1 percent.
       (D) R.J. Reynolds Tobacco Company--6.6 percent.
       (E) United States Tobacco Company--3.2 percent.
       (2) Contributions in future years.--If contributions under 
     paragraph (1) result in amounts in the fund exceeding 
     $25,000,000,000 in any fiscal year, any such excess amount 
     shall be made available to the States as provided for in 
     section 452.
       (3) No contribution from other tobacco product 
     manufacturers.--No other tobacco product manufacturer may 
     make contributions under this subsection unless such 
     manufacturer is the successor or assign of one or more of the 
     manufacturers described in paragraph (1).
       (4) Commencement of program.--The Program shall commence 
     operations on the date on which at least 1 manufacturer has 
     paid the full share of its contribution under this 
     subsection. The Program shall only be available to those 
     manufacturers that have contributed their full shares under 
     this subsection.
       (c) Responsibility of Secretary.--The Secretary shall 
     administer the Program pursuant to the guidelines established 
     by the National Tobacco Compensation Commission established 
     under subsection (d).
       (d) National Tobacco Compensation Commission.--
       (1) Establishment.--There is hereby established a 
     commission to be known as the ``National Tobacco Compensation 
     Commission'' (referred to in this subsection as the 
     ``Commission'').
       (2) Composition.--The Commission shall be composed of 7 
     members, of which--
       (A) 1 member shall be appointed by the President;
       (B) 2 members shall be appointed by the Majority Leader of 
     the Senate;
       (C) 1 member shall be appointed by the Minority Leader of 
     the Senate;
       (D) 2 members shall be appointed by the Speaker of the 
     House of Representatives; and
       (E) 1 member shall be appointed by the Minority Leader of 
     the House of Representatives.
       (3) Time for appointment, terms and vacancies.--The members 
     of the Commission shall be appointed not later than 90 days 
     after the date of enactment of this Act. A vacancy in the 
     Commission shall not affect the powers of the Commission and 
     shall be filled in the same manner in which the original 
     appointment was made.
       (4) Compensation and expenses.--Members of the Commission 
     may not receive compensation for service on the Commission. 
     Such members may, in accordance with chapter 57 of title 5, 
     United States Code, be reimbursed for reasonable travel, 
     subsistence, and other necessary expenses incurred in 
     carrying out the duties of the Commission, notwithstanding 
     the limitations contained in sections 5701 through 5733 of 
     such title 5.
       (5) Establishment of program.--Not later than 90 days after 
     the expiration of the period described in paragraph (3), the 
     Commission, in consultation with the Secretary and the 
     Congress, shall establish a Voluntary National Tobacco 
     Compensation Program to provide compensation to claimants who 
     have a total disability or terminal disease, as classified 
     under the list developed under subsection (e)(2), that is 
     directly attributable to the use of a tobacco product in 
     accordance with subsection (e)(3). Such program shall, 
     subject to the payment of contributions under subsection (b), 
     continue in operation for the 25-year period beginning on the 
     date of enactment of this Act, or until the provisions of 
     this title are repealed, whichever occurs first. Congress may 
     at any time act to reauthorize and extend the Program 
     established under this section.
       (6) Duties.--The Commission shall--
       (A) annually meet and review the most recent scientific 
     developments and research relating to tobacco use and update 
     the comprehensive list described in subsection (e)(2);
       (B) develop rules and procedures for the administration of 
     the program established under this section;
       (C) develop procedures for paying compensation to claimants 
     under this section, including procedures to provide for the 
     payment of such claims over more than 1 year if sufficient 
     funds are not available under subsection (b) for the year in 
     which the claim is made;
       (D) develop procedures for the submission of conflicts to 
     binding arbitration;
       (E) procedures for waiving the compensation limitations 
     described in subsection (e) in cases of extraordinary 
     circumstances;
       (F) procedures for the conduct of internal reviews under 
     subsection (e)(8)(A);
       (G) carry out any other activities determined appropriate 
     by the Commission; and
       (H) at its discretion based on the remaining funds make a 
     determination as to the availability of the Program for 
     individuals with a partial disability that is directly 
     attributable to the use of a tobacco product in accordance 
     with subsection (e)(3), while assuring that claimants 
     suffering from a total disability or terminal disease that is 
     directly attributable to the use of a tobacco product have a 
     priority when applying for compensation under the Program.
       (7) Report.--
       (A) In general.--Not later than 180 days after the 
     expiration of the period described in paragraph (3), the 
     Commission shall prepare a report that describes the 
     establishment, guidelines and operations of the Program, that 
     recommends adjustments in the contribution levels under 
     subsection (b), that provides the list of illnesses described 
     in subsection (e)(3), and that provides the procedures 
     described in subsection (e)(5).
       (B) Submission.--The report described in subparagraph (A) 
     shall be submitted to the--
       (i) President and the Secretary;
       (ii) Majority and Minority Leaders of the Senate;
       (iii) Committees on Commerce, Labor and Human Resources, 
     Finance, and Judiciary of the Senate;
       (iv) Speaker and Minority Leader of the House of 
     Representatives; and
       (v) Committees on Commerce, Judiciary, and Ways and Means 
     of the House of Representatives.

[[Page S5703]]

       (8) Information.--Each department, agency, and 
     instrumentality of the executive branch of the Federal 
     Government, including independent agencies, shall furnish to 
     the Commission, upon request by the Commission, such 
     information as the Commission determines to be necessary to 
     carry out its functions under this section.
       (9) Use of services and facilities.--The Commission may 
     utilize the services and facilities of any Federal agency 
     without reimbursement, may accept voluntary services 
     notwithstanding section 1342 of title 31, United States Code, 
     and may enter into contracts with any public or private 
     person or entity for reports or research in furtherance of 
     the work of the Commission.
       (10) Termination.--The Commission shall terminate on the 
     date that is 5 years after the date on which the final report 
     of the Commission is submitted under paragraph (7). Congress 
     may at any time act to reauthorize and extend the Commission 
     established under this subsection.
       (11) Authorization of Appropriations.--Subject to the 
     limitation described in subsection (e), there is authorized 
     to be appropriated not to exceed $1,000,000 for each of the 
     fiscal years during which the Commission is in operation, 
     from the National Tobacco Settlement Trust Fund to carry out 
     this section.
       (e) Procedure.--The Commission, in developing the National 
     Tobacco Compensation Program under subsection (d), shall 
     establish--
       (1) procedures under which an individual with a disease 
     described in subsection (d)(5) may file a one-time 
     administrative claim per separate and distinct disease with 
     the Secretary seeking compensation for any and all diseases 
     and conditions appearing on the comprehensive list described 
     in paragraph (2);
       (2) procedures to ensure that such claims are submitted on 
     a form to be developed by the Commission that shall contain--
       (A) the name and address of the individual;
       (B) a description of the disease or condition for which the 
     individual is seeking compensation; and
       (C) any other supporting documentation that is determined 
     appropriate by the Commission or the Secretary;
       (3) in consultation with the Centers for Disease Control 
     and Prevention, the Department of Health and Human Services, 
     and appropriate committees of Congress, a comprehensive list 
     of diseases and conditions which constitute total disability 
     or are terminal for purposes of paying claims brought under 
     this section on an equitable basis, taking into consideration 
     age and tobacco product use history, including tobacco use in 
     conjunction with exposure to asbestos and black lung disease;
       (4) procedures to require that a claimant provide 
     supporting documentation that such claimant has a compensable 
     disease that is directly attributable to the use of tobacco, 
     including documentation pertaining to the claimants tobacco 
     use history and exposure to asbestos or black lung disease;
       (5) procedures, in order to make a determination with 
     respect to a claim under paragraph (2), or to make a 
     determination with respect to the amount of compensation for 
     which a claimant is eligible, for the requesting from a 
     claimant of additional information relating to the disease or 
     condition involved;
       (6) procedures for the implementation of a schedule to pay 
     claims in a manner that ensure the full payment of claims;
       (7) streamlined procedures so as to ensure that a claimant 
     is not required to be represented by an attorney;
       (8) procedures to provide for the resolution of disputes 
     regarding determinations of the Secretary concerning the 
     eligibility of the claimant for compensation, or the amount 
     of compensation to be paid, under which the claimant may--
       (A) obtain an internal review of the determination of the 
     Secretary;
       (B) after a review under subparagraph (A), submit the 
     dispute to arbitration as described in subsection (d)(6)(D) 
     under procedures to be established by the Commission; and
       (C) after an arbitration hearing under subparagraph (B), 
     file a civil action against the manufacturer involved;
       (9) procedures to provide for the collection of voluntary 
     contributions under subsection (b); and
       (10) procedures to ensure that the liability of 
     manufacturers for claims under this section are separate 
     based on the illnesses involved and the nature of the tobacco 
     product involved.
       (f) No Judicial Action.--Except as provided in subsection 
     (e)(8)(C), upon the contribution of funds as provided for 
     under subsection (b), an individual may not commence a 
     tobacco claim in any Federal or State court against a tobacco 
     product manufacturer who makes such a contribution.
       (g) Administration and Attorneys Fees.--
       (1) In general.--The procedures developed under subsection 
     (e) shall ensure that amounts paid from the Program in 
     connection with administrative costs do not exceed an amount 
     equal to 10 percent of the amounts available under the 
     program is each fiscal year.
       (2) Attorneys fees.--
       (A) In general.--Procedures developed under subsection (e) 
     shall provide that, whenever the Secretary renders a 
     determination favorable to a claimant under the Program and 
     that claimant was represented by an attorney, the Secretary 
     may determine and allow as part of its determination a 
     reasonable fee for such representation, not in excess of 10 
     percent of the total of the benefits to which the claimant is 
     entitled by reason of such determination. In case of any such 
     determination, no fee may be payable or certified for payment 
     for such representation except as provided in this paragraph.
       (B) Limitation.--Any attorney who charges, demands, 
     receives, or collects for services rendered in connection 
     with proceedings to which subparagraph (A) applies, any 
     amount in excess of that permitted under such subparagraph 
     (A) shall be guilty of a misdemeanor and upon conviction 
     thereof shall be subject to a fine of not more than $500, or 
     imprisonment for not more than 1 year, or both.
       (h) Time for Payment.--The Secretary shall take steps to 
     ensure that, to the maximum extent practicable, claimants 
     receive compensation in accordance with this section not 
     later than 90 days after the date on which the claim involved 
     is filed.
       (i) Limitation With Respect to Prisoners.--No individual 
     incarcerated in a Federal, State or local prison or jail may 
     file a claim with the Program under this section.
       (j) Applicability.--This section shall apply as provided 
     for under subsection (b)(4). The provisions of section 1412 
     shall apply only if the voluntary contributions are not made 
     in any year or are less than the amount described in 
     subsection (b) in any year.
       (k) Effective Date.--The Secretary shall implement the 
     compensation program under this section not later than 90 
     days after the date on which the report of the Commission is 
     submitted under subsection (d)(7).
                                 ______
                                 

                      FEINSTEIN AMENDMENT NO. 2460

  (Ordered to lie on the table.)
  Mrs. FEINSTEIN submitted an amendment intended to be proposed by her 
to the bill, S. 1415, supra; as follows:

       In section 451(a), strike paragraph (3) and insert the 
     following:
       (3) Distribution to states.--From the amounts in the State 
     Litigation Settlement Account for a fiscal year, the 
     Secretary of the Treasury shall make available to each State 
     the applicable percentage of such amount in accordance with 
     the following table which shall represent the share of each 
     State of the total number of individuals in the United States 
     under 18 years of age (as determined by the United States 
     Census Bureau in its data table compilation entitled 
     ``Population Estimates for States and Outlying Areas: July 1, 
     1996):
    State                                         Applicable Percentage
      Alabama.....................................................1.559
      Alaska.....................................................0.2670
      Arizona.....................................................1.666
      Arkansas....................................................0.955
      California.................................................12.841
      Colorado....................................................1.445
      Connecticut.................................................1.156
      Delaware....................................................0.255
      District of Columbia........................................0.159
      Florida.....................................................4.957
      Georgia.....................................................2.828
      Hawaii......................................................0.444
      Idaho.......................................................0.505
      Illinois....................................................4.571
      Indiana.....................................................2.170
      Iowa........................................................1.042
      Kansas......................................................0.995
      Kentucky....................................................1.403
      Louisiana...................................................1.786
      Maine.......................................................0.434
      Maryland....................................................1.863
      Massachusetts...............................................2.059
      Michigan....................................................3.674
      Minnesota...................................................1.806
      Mississippi.................................................1.110
      Missouri....................................................2.019
      Montana.....................................................0.337
      Nebraska....................................................0.640
      Nevada......................................................0.604
      New Hampshire...............................................0.428
      New Jersey..................................................2.878
      New Mexico..................................................0.726
      New York....................................................6.576
      North Carolina..............................................2.656
      North Dakota................................................0.244
      Ohio........................................................4.124
      Oklahoma....................................................1.276
      Oregon......................................................1.170
      Pennsylvania................................................4.192
      Rhode Island................................................0.341
      South Carolina..............................................1.358
      South Dakota................................................0.296
      Tennessee...................................................1.915
      Texas.......................................................7.896
      Utah........................................................0.983
      Vermont.....................................................0.212
      Virginia....................................................2.363
      Washington..................................................2.081
      West Virginia...............................................0.611
      Wisconsin...................................................1.945
      Wyoming.....................................................1.456
                                 ______
                                 

                   DOMENICI AMENDMENTS NOS. 2461-2462

  (Ordered to lie on the table.)
  Mr. DOMENICI submitted two amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2461

       At the appropriate place, insert the following:

[[Page S5704]]

       Notwithstanding any other provision of this Act, section 
     401(e) is null and void.
                                  ____


                           Amendment No. 2462

       Strike section 401(e).
                                 ______
                                 

                    COATS AMENDMENTS NOS. 2463-2467

  (Ordered to lie on the table.)
  Mr. COATS submitted five amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2463

       Beginning on page 385, strike line 10 and all that follows 
     through line 20 on page 386.
                                  ____


                           Amendment No. 2464

       On page 127, after line 24, add the following:
       (h) Military Base Exclusions.--Nothing in this section 
     shall be construed to provide authority to the Secretary or 
     to a State to establish a retail licensing program for, or 
     conduct inspections of the sale of tobacco on, Federal 
     military bases.
                                  ____


                           Amendment No. 2465

       At the appropriate place in title I, insert the following:

     SEC. ____. PROHIBITION ON DIVERSION OF FDA RESOURCES.

       Notwithstanding any other provision of this Act, or an 
     amendment made by this Act, the Secretary shall ensure that 
     the tobacco-related authority provided to the Food and Drug 
     Administration under this Act and the amendments made by this 
     Act will not result in the diversion of resources from the 
     Center for Biologics Evaluation and Research, the Center for 
     Drug Evaluation and Research, the Center for Devices and 
     Radiological Health, the Center for Food Safety and Applied 
     Nutrition, the Center for Veterinary Medicine, the National 
     Center for Toxicological Research, or from any of the other 
     activities of such Administration, including the review, 
     approval process and other activities required with respect 
     to drugs, devices, cosmetics, and foods.
                                  ____


                           Amendment No. 2466

       At the appropriate place in title IV, insert the following:

     SEC. ____. CENTER FOR TOBACCO PRODUCT REGULATION.

       (a) Establishment.--The Secretary may establish within the 
     Food and Drug Administration a Center for Tobacco Product 
     Regulation (referred to in this section as the ``Center'').
       (b) Jurisdiction.--The Center shall have sole jurisdiction 
     to regulate tobacco products under chapter IX of the Federal 
     Food, Drug and Cosmetic Act.
                                  ____


                           Amendment No. 2467

       On page 23, after line 22, add the following:
       (20) Nonprofit private entity.--The terms ``nonprofit 
     private entity'' or ``private nonprofit entity'' include 
     faith-based organizations, and the provisions of section 
     1981F shall apply with respect to such organizations. With 
     respect to amendments made by this Act, the terms ``nonprofit 
     private entity'' or ``private nonprofit entity'' shall have 
     the meaning given in this paragraph.
       On page 147, between lines 5 and 6, insert the following:

     ``SEC. 1981F. CHARITABLE CHOICE.

       ``(a) Faith-Based Organizations Included as Nongovernmental 
     Providers.--For any program carried out by the Federal 
     Government, or by a State or local government under this 
     subpart, the government shall consider, on the same basis as 
     other nongovernmental organizations, faith-based 
     organizations to provide the assistance under the program, so 
     long as the program is implemented in a manner consistent 
     with the Establishment Clause of the first amendment to the 
     Constitution. Neither the Federal Government nor a State or 
     local government receiving funds under this subpart shall 
     discriminate against an organization that provides assistance 
     under, or applies to provide assistance under, this subpart, 
     on the basis that the organization has a faith-based 
     character.
       ``(b) Exclusions.--As used in subsection (a), the term 
     `program' means activities carried out under this subpart.
       ``(c) Faith-Based Character and Independence.--
       ``(1) In general.--A faith-based organization that provides 
     assistance under a program described in subsection (a) shall 
     retain its independence from Federal, State, and local 
     governments, including such organization's control over the 
     definition, development, practice, and expression of its 
     faith-based beliefs.
       ``(2) Additional safeguards.--Neither the Federal 
     Government nor a State or local government shall require a 
     faith-based organization--
       ``(A) to alter its form of internal governance; or
       ``(B) to remove faith-based art, icons, scripture, or other 
     symbols;

     in order to be eligible to provide assistance under a program 
     described in subsection (a).
       ``(d) Employment Practices.--The exemption of a faith-based 
     organization provided under section 702 or 703(e)(2) of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000e-1, 2000e-2(e)(2)) 
     regarding employment practices shall not be affected by the 
     faith-based organization's provision of assistance under, or 
     receipt of funds from, programs described in subsection (a).
       ``(e) Rights of Beneficiaries of Assistance.--
       ``(1) In general.--If an individual described in paragraph 
     (3) has an objection to the faith-based character of the 
     organization from which the individual receives, or would 
     receive, assistance funded under any program described in 
     subsection (a), the appropriate Federal, State, or local 
     governmental entity shall provide to such individual (if 
     otherwise eligible for such assistance) within a reasonable 
     period of time after the date of such objection, assistance 
     that--
       ``(A) is from an alternative organization that is 
     accessible to the individual; and
       ``(B) has a value that is not less than the value of the 
     assistance that the individual would have received from such 
     organization.
       ``(2) Notice.--The appropriate Federal, State, or local 
     governmental entity shall ensure that notice is provided to 
     individuals described in paragraph (3) of the right of such 
     individuals to make the objection described in paragraph (1).
       ``(3) Individual described.--An individual described in 
     this paragraph is an individual who receives or applies for 
     assistance under a program described in subsection (a).
       ``(f) Nondiscrimination Against Beneficiaries.--A faith-
     based organization shall not discriminate against an 
     individual described in subsection (e)(3) in regard to--
       ``(1) rendering assistance funded under any program 
     described in subsection (a) on the basis of religion, a 
     faith-based belief, or refusal to hold a faith-based belief; 
     or
       ``(2) rendering assistance funded through a grant or 
     contract under such program on the basis of refusal to 
     actively participate in a faith-based practice.
       ``(g) Fiscal Accountability.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     faith-based organization providing assistance under any 
     program described in subsection (a) shall be subject to the 
     same regulations as other nongovernmental organizations to 
     account in accord with generally accepted accounting 
     principles for the use of such funds provided under such 
     program.
       ``(2) Limited audit.--Such organization shall segregate 
     government funds provided under such program into a separate 
     account. Only the government funds shall be subject to audit 
     by the government.
       ``(h) Compliance.--A party alleging that the rights of the 
     party under this section have been violated by a State or 
     local government may bring a civil action pursuant to section 
     1979 of the Revised Statutes (42 U.S.C. 1983) against the 
     official or government agency that has allegedly committed 
     such violation. A party alleging that the rights of the party 
     under this section have been violated by the Federal 
     Government may bring a civil action for appropriate relief in 
     an appropriate Federal district court against the official or 
     government agency that has allegedly committed such 
     violation.
       ``(i) Limitations on Use of Funds for Certain Purposes.--No 
     funds provided through a grant or contract to a faith-based 
     organization to provide assistance under any program 
     described in subsection (a) shall be expended for sectarian 
     worship, instruction, or proselytization.
       ``(j) Effect on State and Local Laws.--
       ``(1) In general.--If a State or local government 
     contributes State or local funds to carry out a program 
     described in subsection (a), the government may--
       ``(A) segregate the State or local funds from the Federal 
     funds provided to carry out the program; or
       ``(B) commingle the State or local funds with the Federal 
     funds.
       ``(2) Segregated funds.--If the State or local government 
     segregates the State or local funds, the provisions of State 
     law relating to the expenditure of public funds in or by 
     sectarian institutions shall apply only to the segregated 
     State or local funds.
       ``(3) Commingled funds.--If the State or local government 
     commingles the State or local funds, the provisions of this 
     section shall apply to the commingled funds in the same 
     manner, and to the same extent, as the provisions apply to 
     the Federal funds, and the provisions of State law described 
     in paragraph (2) shall not apply to the commingled funds.
       ``(k) Treatment of Intermediate Contractors.--If a 
     nongovernmental organization (referred to in this subsection 
     as an `intermediate organization'), acting under a contract 
     or other agreement with the Federal Government or a State or 
     local government, is given the authority under the contract 
     or agreement to select nongovernmental organizations to 
     provide assistance under the programs described in subsection 
     (a), the intermediate organization shall have the same duties 
     under this section as the government.
                                 ______
                                 

                CHAFEE (AND STEVENS) AMENDMENT NO. 2468

  (Ordered to lie on the table.)
  Mr. CHAFEE (for himself and Mr. Stevens) submitted an amendment 
intended to be proposed by them to the bill, S. 1415, supra; as 
follows:

       On page 130, after line 25, add the following:

[[Page S5705]]

       ``(3) For each of the first 5 fiscal years following the 
     date of enactment of this part, a percentage of the amount 
     available for any fiscal year under subsection (a) shall be 
     made available to the Secretary to make grants under section 
     1981F.''.

       On page 147, between lines 5 and 6, insert the following:

     ``SEC. 1981F. GRANTS TO MINORITY MEDICAL SCHOOLS FOR 
                   ENDOWMENTS; PUBLIC HEALTH PROGRAMS REGARDING 
                   TOBACCO PRODUCTS.

       ``(a) In General.--From the amount made available under 
     section 1981(b)(3) for the fiscal year, the Secretary shall 
     make grants to schools specified in subsection (b) for the 
     purpose of establishing at the schools endowments each of 
     whose income is used exclusively to carry out--
       ``(1) public health programs; and
       ``(2) programs of biomedical research on diseases for which 
     the consumption of tobacco products is a principal causal 
     factor.
       ``(b) Relevant Schools.--
       ``(1) In general.--The schools referred to in subsection 
     (a) are the following medical schools (schools of medicine or 
     osteopathic medicine) and nursing school that are located in 
     a State or the District of Columbia:
       ``(A) The 4 medical schools in the United States whose 
     enrollment for academic year 1998 of Black individuals 
     constituted a higher percentage of such individuals than 
     other medical schools in the United States.
       ``(B) The 4 medical schools in the United States whose 
     enrollment for academic year 1998 of Hispanic individuals 
     constituted a higher percentage of such individuals than 
     other medical schools in the United States.
       ``(C) The medical school in the United States whose 
     enrollment for academic year 1998 of Native American 
     individuals constituted a higher percentage of such 
     individuals than other medical schools in the United States.
       ``(D) The school of nursing in the United States whose 
     enrollment for academic year 1998 of Alaska Natives 
     constituted a higher percentage of such individuals than 
     other schools of nursing in the United States.
       ``(2) Payments to different schools.--The Secretary may 
     modify the requirements of paragraph (1) only for purposes of 
     ensuring that 10 different schools receive grants under this 
     section.
       ``(c) Distribution of Funds.--
       ``(1) In general.--Subject to paragraph (2), of the funds 
     made available for grants under this section for a fiscal 
     year each school described in subsection (b) shall receive 
     $5,000,000.
       ``(2) Pro rata reductions.--If the funds made available for 
     grants under this section for a fiscal year are not 
     sufficient to pay each school described in subsection (b) the 
     amount described in paragraph (1), the Secretary shall pay 
     each such school an amount equal to the pro rata share of the 
     amount made available.
       ``(d) Accountability.--Any school that receives a grant 
     under this section shall file an annual report with the 
     Department of Education and the Department of Health and 
     Human Services on the use of the funds received by the school 
     under a grant made under this section.''.
                                 ______
                                 

                 CHAFEE (AND OTHERS) AMENDMENT NO. 2469

  (Ordered to lie on the table.)
  Mr. CHAFEE (for himself, Mr. Harkin, and Mr. Graham) submitted an 
amendment intended to be proposed by them to the bill, S. 1415, supra; 
as follows:

       In section 402, strike subsection (b), and insert the 
     following:
       (b) Annual Base Payments.--Each calendar year beginning 
     after the required payment date under subsection (a)(3), the 
     tobacco product manufacturers shall make total payments into 
     the Fund for each calendar year in the following applicable 
     base amounts, subject to adjustment as provided in section 
     403:
       (1) For year 1--$14,400,000,000.
       (2) For year 2--$21,600,000,000.
       (3) For year 3, and each subsequent year, an amount equal 
     to the amount of the annual base payment for the preceding 
     year, prior to any adjustment as provided for in section 403, 
     increased by the greater of 3 percent or the annual increase 
     in the CPI.

     For purposes of this subsection, the CPI for any calendar 
     year is the average of the Consumer Price Index for all urban 
     consumers published by the Department of Labor. If any 
     increase determined under this subsection is not a multiple 
     of $1,000, the increase shall be rounded to the nearest 
     multiple of $1,000.

       Strike section 403 and insert the following:

     SEC. 403. VOLUME ADJUSTMENT.

       Beginning with calendar year 2000, the applicable base 
     amount shall be adjusted for changes in volume of domestic 
     sales by multiplying the applicable base amount by the ratio 
     of the actual volume for the calendar year to the base 
     volume. For purposes of this subsection, the term ``base 
     volume'' means 80 percent of the number of units of taxable 
     domestic removals and taxed imports of cigarettes in calendar 
     year 1997, as reported to the Secretary of the Treasury. For 
     purposes of this section, the term ``actual volume'' means 
     the number of adjusted units as defined in section 
     402(d)(3)(A).
                                 ______
                                 

                     ENZI AMENDMENTS NOS. 2470-2471

  (Ordered to lie on the table.)
  Mr. ENZI submitted an amendment intended to be proposed by him to the 
bill, S. 1415, supra; as follows:

                           Amendment No. 2470

       Strike subtitle B of title IV, and insert the following:

                        Subtitle B--Use of Funds

     SEC. 451. USE OF FUNDS.

       Notwithstanding any other provision of this Act, amounts 
     contained in the National Tobacco Settlement Trust Fund in a 
     fiscal year shall be made available as follows:
       (1) 50 percent of such amounts shall be transferred in such 
     fiscal year to the Federal Hospital Insurance Trust Fund 
     established under section 1817 of the Social Security Act (42 
     U.S.C. 1395i).
       (2) 25 percent of such amounts shall be transferred in such 
     fiscal year to the States through the medicaid program under 
     title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.).
       (3) 25 percent of such amounts shall be provided to the 
     States in such fiscal year through block grants for the 
     development and administration of programs to restrict youth 
     access to tobacco products and illegal drugs as provided for 
     in regulations promulgated by the Secretary.
                                  ____


                           Amendment No. 2471

       At the end of the amendment, add the following:

     SEC. ____. LIMITATIONS ON EXPENDITURES AND OBLIGATIONS.

       Notwithstanding any other provision of this Act--
       (1) any expenditure required by this Act shall be made from 
     the National Tobacco Trust Fund;
       (2) the Federal Government shall only be obligated to make 
     expenditures as authorized by this Act, including any payment 
     to any person or government, as provided in advance in 
     appropriations Acts;
       (3) amounts appropriated to make expenditures authorized by 
     this Act in a fiscal year may not exceed the amounts 
     deposited in the National Tobacco Trust Fund in the preceding 
     fiscal year; and
       (4) amounts provided in a fiscal year authorized by this 
     Act shall be reduced on a pro rata basis in that fiscal year 
     to offset any excess in those amounts over amounts deposited 
     in the National Tobacco Trust Fund in the preceding fiscal 
     year.
                                 ______
                                 

                        COATS AMENDMENT NO. 2472

  (Ordered to lie on the table.)
  Mr. COATS submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       At the appropriate place in title XIV, insert the 
     following:

     SEC. ____. LIMIT ON ATTORNEYS' FEES.

       (a) Fee Arrangements.--Subsection (f) shall apply to 
     attorneys' fees provided for or in connection with action of 
     the type described in subsection (c) under any--
       (1) court order;
       (2) settlement agreement;
       (3) contingency fee arrangement;
       (4) arbitration procedure;
       (5) alternative dispute resolution procedure (including 
     mediation);
       (6) retainer agreements; or
       (7) other arrangement providing for the payment of 
     attorneys' fees.
       (b) Requirements.--No award of attorneys' fees under any 
     action to which this Act applies shall be made under this Act 
     until the attorneys involved have--
       (1) provided to the Congress a detailed time accounting 
     with respect to the work performed in relation to the legal 
     action involved; and
       (2) made public disclosure of the time accounting under 
     paragraph (1) and any fee arrangements entered into, or fee 
     arrangements made, with respect to the legal action involved.
       (c) Application.--This section shall apply to fees paid or 
     to be paid, under any arrangement described in subsection 
     (a), to attorneys--
       (1) who acted on behalf of a State or political subdivision 
     of a State in connection with any past litigation of an 
     action maintained by a State against one or more tobacco 
     companies to recover tobacco-related medicaid expenditures;
       (2) who acted on behalf of a State or political subdivision 
     of a State in connection with any future litigation of an 
     action maintained by a State against one or more tobacco 
     compares to recover tobacco-related medicaid expenditures;
       (3) who act at some future time on behalf of a State or 
     political subdivision of a State in connection with any past 
     litigation of an action maintained by a State against one or 
     more tobacco companies to recover tobacco-related medicaid 
     expenditures;
       (4) who act at some future time on behalf of a State or 
     political subdivision of a State in connection with any 
     future litigation of an action maintained by a State against 
     one or more tobacco companies to recover tobacco-related 
     medicaid expenditures;
       (5) who acted on behalf of a plaintiff class in civil 
     actions to which this Act applies that are brought against 
     participating or nonparticipating tobacco manufacturers;
       (6) who act at some future time on behalf of a plaintiff 
     class in civil actions to which this Act applies that are 
     brought against participating or nonparticipating tobacco 
     manufacturers;

[[Page S5706]]

       (7) who acted on behalf of a plaintiff in civil actions to 
     which this Act applies that are brought against participating 
     or nonparticipating tobacco manufacturers;
       (8) who act at some future time on behalf of a plaintiff in 
     civil actions to which this Act applies that are brought 
     against participating or nonparticipating tobacco 
     manufacturers;
       (9) who expended efforts that in whole or in part resulted 
     in or created a model for programs in this Act;
       (10) who acted on behalf of a defendant in any of the 
     matters set forth in paragraphs (1) through (9); or
       (11) who act at some future time on behalf of a defendant 
     in any of the matters set forth in paragraphs (l) through 
     (9).
       (d) Report.--
       (1) In general.--Each attorney whose fees for services 
     already rendered are subject to subsection (a) shall, within 
     60 days of the date of the enactment of this Act, submit to 
     Committee on the Judiciary of the House of Representatives 
     and the Committee on the Judiciary of the Senate a 
     comprehensive record of the time and expenses for which the 
     fees are to be paid. Such record shall be subject to section 
     1001(a) of title 18, United States Code.
       (2) Future action.--Each attorney whose fees for services 
     rendered in the future are subject to subsection (a) shall, 
     within 60 days of the completion of the attorney's services, 
     submit to Committee on the Judiciary of the House of 
     Representatives and the Committee on the Judiciary of the 
     Senate a comprehensive record of the time and expenses for 
     which the fees are to be paid. Such record shall be subject 
     to section 1001(a) of title 18, United States Code.
       (e) Severability.--If any provision of this section or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this section 
     and the application of the provisions of such to any person 
     or circumstance shall not be affected thereby.
       (f) General Limitation.--Notwithstanding any other 
     provision of law, for each hour spent productively and at 
     risk, separate from the reimbursement of actual out-of-pocket 
     expenses as approved by the court in any action to which this 
     section applies, any attorneys' fees or expenses paid to 
     attorneys for matters described in subsection (c) shall not 
     exceed $________ per hour.
       (g) Effective Date and Use of Funds.--
       (1) Effective date.--This section shall take effect on the 
     date on which the Secretary makes use of amounts appropriated 
     under section 1161.
       (2) Use of funds.--Any funds remaining in the National 
     Tobacco Trust Fund as a result of the implementation of this 
     section shall be used as provided for in section 1161.
                                 ______
                                 

                   HOLLINGS AMENDMENTS NOS. 2473-2475

  (Ordered to lie on the table.)
  Mr. HOLLINGS submitted three amendments intended to be proposed by 
him to the bill, S. 1415, supra; as follows:

                           Amendment No. 2473

       On page 58, strike lines 8 through line 23, and insert the 
     following:
       ``(3) Secretary may not ban class of product or eliminate 
     nicotine content without Congressional authority.--The 
     Secretary may not, under this Act or any other provision of 
     law, issue a regulation establishing a performance standard 
     (or take other action)--
       ``(A) eliminating all cigarettes, all smokeless tobacco 
     products, or any similar class of tobacco products; or
       ``(B) requiring the reduction of nicotine yields of a 
     tobacco product to zero.

     If the Secretary determines that such action should be taken, 
     the Secretary shall so notify the Congress, with an 
     explanation of the reasons therfor, and a request for 
     legislative authority explicitly modifying, repealing, or 
     overriding the preceding sentence.''
                                  ____


                           Amendment No. 2474

       On page 216, strike lines 11 through 18, and insert the 
     following:
       This title shall not apply to any State that, by law, 
     provides that it shall not apply to that State.
                                  ____


                           Amendment No. 2475

       After section 1134, insert the following:

     SEC. 1135. IMPORTATION OF TOBACCO PRODUCTS.

       (a) Findings.--The Congress finds that--
       (1) if the price of cigarettes increases, there may be an 
     increasing incentive to import tobacco leaf of substandard 
     quality;
       (2) the importation of substandard tobacco leaf could cause 
     increased health problems, and possibly expose United States-
     grown tobacco leaf to infestation from abroad; and
       (3) imported tobacco leaf must be reviewed in a uniform and 
     consistent fashion to ensure the quality and uniform 
     treatment of imports of tobacco leaf.
       (b) Requirements.--
       (1) In general.--No tobacco leaf not a product of the 
     United States may be introduced into interstate commerce in 
     the United States unless it is--
       (A) imported through the Port of Omaha, Nebraska;
       (B) held in customs custody for not less than 6 years; and
       (C) entered under single-entry bond.
       (2) Automated entry.--Tobacco leaf not a product of the 
     United States is not eligible for automated entry under the 
     laws and procedures of the United States relating to the 
     importation of such products.
       (3) Suspension of drawback for drastic reduction in tobacco 
     companies' purchase of tobacco leaf.--If for any marketing 
     year the aggregate volume of tobacco leaf that United States 
     tobacco product manufacturers purchase under the tobacco 
     marketing program conducted by the Secretary of Agriculture 
     under sections 320A and 320B of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1314g and 1314h) (or under the law of 
     any State or compact of States) is less than 85 percent of 
     the aggregate volume of tobacco leaf the manufacturers 
     purchased in the preceding marketing year, no drawback shall 
     be allowed with respect to the duties paid on imported 
     tobacco leaf and related products for a period of 24 months 
     beginning on the first day of such marketing year.
                                 ______
                                 

                    SNOWE AMENDMENTS NOS. 2476-2477

  (Ordered to lie on the table.)
  Ms. SNOWE submitted two amendments intended to be proposed by her to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2476

       On page 408, between lines 5 and 6, insert the following:

    Subtitle A--Provisions Relating to the Protocol and Liability''.

       On page 444, after line 14, insert the following:

   Subtitle B--Codification of Marketing and Advertising Restrictions

     SEC. 1421. FINDINGS.

       To demonstrate the need for restrictions on the marketing 
     and advertising of tobacco products, and to demonstrate that 
     the restrictions contained in this subtitle are 
     constitutional and meet the requirements of the Central 
     Hudson case that the asserted governmental interest is 
     substantial, directly advances the governmental interest, and 
     is no more extensive than is necessary to serve that 
     governmental interest, Congress makes the following findings:
       (1) The sale of tobacco to minors is illegal in the United 
     States. Therefore, forms of marketing and advertising that 
     appeal to children must be restricted accordingly.
       (2) Substantial restrictions on tobacco marketing and 
     advertising are necessary to protect the public health, 
     reduce the illegal sale and purchase of tobacco products by 
     minors, and reduce the cost of tobacco-related illnesses on 
     Federal and State health care programs.
       (3) As recognized in New York v. Ferber, protecting the 
     physical and psychological well-being of children is a 
     compelling, not merely a substantial, interest of the 
     government.
       (4) The cost of tobacco on public health care programs is 
     substantial as evidenced by a 1995 study by Columbia 
     University that found that the estimated cost of tobacco on 
     the medicare and medicaid programs was $25,500,000,000 and 
     $8,200,000,000 respectively. Therefore, reducing these costs, 
     which absorb substantial public resources, by reducing the 
     utilization of tobacco would serve a substantial government 
     interest.
       (5) According to the 1994 Surgeon General's Report, nearly 
     90 percent of all adults who have ever been regular smokers 
     began smoking at or before the age of 18, and, according to a 
     Robert Wood Johnson Foundation Survey, the average smoker 
     begins smoking at age 13 and is hooked by age 14\1/2\. 
     Therefore, reducing the attractiveness of tobacco to children 
     will reduce the likelihood that a child ever tries tobacco, 
     and ensure that the long-term costs of tobacco-related 
     illnesses will be averted.
       (6) Marketing and advertising plays a significant role in 
     attracting teens to tobacco and determining the brands that 
     they use. According to the Centers for Disease Control and 
     Prevention, 86 percent of children who buy their own 
     cigarettes choose one of the 3 most heavily advertised brands 
     (Marlboro (60 percent), Camel (13.3 percent), or Newport 
     (12.7 percent)). In contrast, most adult smokers opt for 
     generic or ``value category'' cigarette brands that rely on 
     little, if any, image advertising.
       (7) Tobacco industry documents and memorandums make clear 
     that the industry considers children a key market, studied 
     the smoking habits of children, and developed products and 
     marketing campaigns that are directly intended to attract 
     children to the purchase and use of their products.
       (8) According to a 1995 study by The Journal of the 
     National Cancer Institute, tobacco marketing has a greater 
     influence in spurring children to take up smoking than 
     exposure to parents or peers who smoke, and must be 
     restricted accordingly.
       (9) Children are more sensitive to tobacco advertising than 
     adults, as evidenced by a 1996 study in the Journal of 
     Marketing that found that children are 3 time more sensitive 
     than adults to cigarette advertising.
       (10) Tobacco advertising in magazines and periodicals 
     influences the decision of children to use tobacco, as cited 
     in the proceedings of the Food and Drug Administration and 
     its supporting documents, In addition,

[[Page S5707]]

     children who report seeing cigarette advertising in magazines 
     are more likely to experiment with tobacco.
       (11) Cartoon images in advertising greatly enhance the 
     appeal of tobacco to children, as evidenced by the ``Joe 
     Camel'' marketing campaign. According to the Centers for 
     Disease Control and Prevention, when advertising for the 
     ``Joe Camel'' campaign rose from $27,000,000 to $43,000,000 
     between 1989 and 1993, Camel's market share among youth 
     increased by more than 50 percent while it's share among 
     adults was unchanged. Therefore, because cartoon advertising 
     has been demonstrated to be a direct appeal to minors and not 
     adults, such images should be banned.
       (12) Children as young as 3 to 6 years of age can recognize 
     a character associated with smoking at the same rate as they 
     recognize cartoons and fast food characters.
       (13) Human and animal images in tobacco advertising, and 
     the themes that these images portray, have a profound impact 
     on children, as evidenced by the ``Marlboro Man'' and the 
     ``Marlboro Horses''. The image of independence and freedom 
     conveyed by these images has led to Marlboro cigarettes 
     capturing nearly 60 percent of the youth market even though 
     the brand accounts for only 12.7 percent of cigarette 
     advertising overall. Therefore, images portraying human and 
     animal images should be restricted to adult-only venues.
       (14) Event sponsorships by tobacco companies increase the 
     likelihood that children will use tobacco as these events 
     connect the product to individuals and activities that are 
     admired and respected by children.
       (15) According to a report in the American Journal of 
     Public Health, the observation of tobacco marketing in stores 
     is a significant predictor of a child's likelihood of 
     experimenting with tobacco, increasing the probability by 38 
     percent. Therefore, in-store marketing should be restricted 
     accordingly.
       (16) Tobacco promotions greatly enhance the likelihood that 
     children will use tobacco products, as evidenced by a 
     November 1996 study in the American Journal of Public Health. 
     This study found that a child who was simply aware of tobacco 
     promotions was twice as likely to use tobacco as a child who 
     was not. In addition, it found that a child who is aware of 
     tobacco promotion, has knowledge of an adolescent friend with 
     promotional items, and participates in a promotional activity 
     is 9.3 time more likely to use tobacco.
       (17) A 1998 study of teenagers in the Journal of the 
     American Medical Association showed that tobacco industry 
     promotional activities influenced previously non-susceptible 
     non-smokers to become susceptible or to experiment with 
     smoking.
       (18) Restrictions on the number and placement of point-of-
     sale advertisements in stores and other outlets that are 
     permissible for children to enter are necessary to reduce the 
     appeal of tobacco products to children, while ensuring that 
     consumers who can legally purchase these products are able to 
     receive useful information.
       (19) As demonstrated in the Food and Drug Administration 
     rule, billboards and other forms of outdoor advertising that 
     are located near schools and playgrounds can affect the 
     decision of children to use tobacco products. Therefore, bans 
     on these forms of advertising near these facilities, and 
     within distances that are frequently traveled by children to 
     access these facilities, would be a narrowly-tailored method 
     of fulfilling the government interest, while still allowing 
     information to be provided in this format to consumers who 
     can legally purchase these products at other locations that 
     are less-frequently viewed by children.
       (20) Through advertisements during, and sponsorship of, 
     sporting events, tobacco has become strongly associated with 
     sports and has become portrayed as an integral part of sports 
     and the healthy lifestyle associated with rigorous sporting 
     activity.
       (21) Because children are influenced by the images, habits, 
     and mannerisms depicted by actresses and actors in movies and 
     other forms of print and film media, tobacco companies should 
     not be permitted to receive payments for the inclusion of 
     logos, symbols, or mottoes in these types of venues if they 
     will be viewed by children under the age of 18 without the 
     supervision of a parent or guardian.
       (22) Because children are influenced by the behavior of 
     musical and other live entertainers whom they admire, 
     payments by tobacco companies to live entertainers or their 
     agents should be restricted at events in which individuals 
     under the age of 18 are permitted to attend, and a 
     substantial number of these individuals would reasonably be 
     expected to attend.
       (23) To ensure that advertising and marketing efforts are 
     not deceptive or misleading, descriptors such as ``light'' 
     and ``low tar'' should be accompanied by a disclaimer that 
     the product is not less hazardous than any other tobacco 
     product.
       (24) Restrictions on the placement of advertisements in 
     buses, subways, and other forms of public transportation that 
     are reasonably expected to be utilized by a significant 
     number of children on a daily basis will ensure that children 
     are not exposed to such advertising for an extended period of 
     time during a commute, and will reduce the susceptibility of 
     children to tobacco advertising accordingly.

     SEC. 1422. ADVERTISING PROVISIONS.

       (a) In General.--A tobacco product may not be sold or 
     distributed in the United States--
       (1) if its advertising or labeling (including the 
     package)--
       (A) contains a cartoon character;
       (B) except as provided in subsection (b), contains a human 
     image or animal image;
       (C) appears in an enclosed stadia during events that are 
     conducted with a reasonable expectation that 5 percent or 
     more of the attendees will be under the age of 18 years;
       (D) appears within 5000 feet of any elementary or secondary 
     school, playground, or public park containing playground 
     equipment;
       (E) appears in public transportation, including buses, 
     subways, and trains, that is reasonably expected to be 
     utilized by 5 percent or more of passengers under the age of 
     18 years on an average daily basis; or
       (F) contains words such as ``light'' or ``low tar'' and is 
     not accompanied by a disclaimer that words such as ``light'' 
     or ``low tar'' describing the product do not render the 
     product less hazardous than any other tobacco product, in 
     addition to such other requirements as the Secretary may 
     impose;
       (2) if a logo, symbol, motto, selling message, recognizable 
     color or pattern of colors, or any other indicia of the 
     tobacco product that would be readily identifiable, and 
     therefore appealing, to individuals under the age of 18 years 
     is contained in a movie, program, or video game that an 
     individual under the age of 18 years is able to attend or 
     utilize without the accompaniment or consent of a parent or 
     adult age 18 years or older for which a direct or indirect 
     payment has been made to ensure its placement; or
       (3) if a direct or indirect payment has been made by any 
     manufacturer, distributor, or retailer to any entity for the 
     purpose of promoting the image or use of a tobacco product 
     through print or film media that is recognizable, and 
     therefore appealing, to individuals under the age of 18 years 
     and at which individuals under the age of 18 years are 
     permitted to attend without the accompaniment or consent of a 
     parent or adult age 18 years or older, or through a live 
     performance by an entertainment artist where individuals 
     under the age of 18 years are permitted to attend without the 
     accompaniment of a parent or adult age 18 years or older, and 
     would reasonable expect that 5 percent or more of the 
     audience will be under the age of 18 years.
       (b) Exception.--The prohibition contained in subsection 
     (a)(1)(B) shall not apply to a tobacco product advertisement 
     that appears in an adult-only facility, or in any publication 
     which the manufacturer, distributor, or retailer demonstrates 
     to the Secretary is a newspaper, magazine, periodical, or 
     other publication whose readers under the age of 18 years 
     constitute 15 percent or less of the total readership as 
     measured by competent and reliable survey evidence, and that 
     is read by less than 2,000,000 persons under the age of 18 
     years as measured by competent and reliable survey evidence.

     SEC. 1423. POINT-OF-SALE RESTRICTIONS.

       (a) In General.--Except as provided in subsection (b), no 
     manufacturer, distributor, or retailer shall engage in point-
     of-sale advertising of any tobacco product in any retail 
     establishment (other than an establishment that sells only 
     tobacco products) in which an individual under the age of 18 
     is present, or permitted to enter, at any time.
       (b) Exception.--
       (1) In general.--A retailer may place 1 point-of-sale 
     advertisement in or at each such location for its brand or 
     the contracted house retailer or private label brand of its 
     wholesaler.
       (2) Display area.--The display area of any point-of-sale 
     advertisement permitted under paragraph (1) (either 
     individually or in the aggregate) shall not be larger than 
     576 square inches and shall consist of black letters on white 
     background or another recognized typography.
       (3) Limitation.--A point-of-sale advertisement permitted 
     under paragraph (1) shall not be attached to or located 
     within 2 feet of any display fixture on which candy is 
     displayed for sale.
       (c) Audio and Video.--Any audio or video format permitted 
     under regulations promulgated by the Secretary may be 
     distributed at the time of sale of a tobacco product to 
     individuals over the age of 18 years, but no such format may 
     be played or shown in or at any location where tobacco 
     products are offered for sale and individuals under the age 
     of 18 years are permitted.
       (d) Definition.--As used in this section, the terms 
     ``point-of-sale advertisement'' and ``point-of-sale 
     advertising'' mean all printed or graphical materials bearing 
     the brand name (alone or in conjunction with any other word), 
     logo, symbol, motto, selling message, or any other indicia of 
     product identification identical or similar to, or 
     identifiable with, those used for any brand of cigarettes or 
     smokeless tobacco, which, when used for its intended purpose, 
     can reasonable be anticipated to be seen by customers at a 
     location where tobacco products are offered for sale.

     SEC. 1424. STATUTORY ADVERTISING RESTRICTIONS.

       (a) Authority of Secretary.--The provisions of this 
     subtitle shall in no way affect the authority of the 
     Secretary to regulate tobacco as prescribed in any other 
     provision of this Act or an amendment made by this Act.
       (b) Authority of Federal Trade Commission.--The provisions 
     of this subtitle shall in no way affect the authority of the 
     Federal

[[Page S5708]]

     Trade Commission to regulate tobacco as prescribed in any 
     other provision of this Act or an amendment made by this Act.
       (c) Severability.--If any provision of this subtitle or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this 
     subtitle and the application of the provisions of such to any 
     person or circumstance shall not be affected thereby.
                                  ____


                           Amendment No. 2477

       On page 408, between lines 5 and 6, insert the following:

    Subtitle A--Provisions Relating to the Protocol and Liability''.

       On page 444, after line 14, insert the following:

   Subtitle B--Codification of Marketing and Advertising Restrictions

     SEC. 1421. FINDINGS.

       To demonstrate the need for restrictions on the marketing 
     and advertising of tobacco products, and to demonstrate that 
     the restrictions contained in this subtitle are 
     constitutional and meet the requirements of the Central 
     Hudson case that the asserted governmental interest is 
     substantial, directly advances the governmental interest, and 
     is no more extensive than is necessary to serve that 
     governmental interest, Congress makes the following findings:
       (1) The sale of tobacco to minors is illegal in the United 
     States. Therefore, forms of marketing and advertising that 
     appeal to children must be restricted accordingly.
       (2) Substantial restrictions on tobacco marketing and 
     advertising are necessary to protect the public health, 
     reduce the illegal sale and purchase of tobacco products by 
     minors, and reduce the cost of tobacco-related illnesses on 
     Federal and State health care programs.
       (3) As recognized in New York v. Ferber, protecting the 
     physical and psychological well-being of children is a 
     compelling, not merely a substantial, interest of the 
     government.
       (4) The cost of tobacco on public health care programs is 
     substantial as evidenced by a 1995 study by Columbia 
     University that found that the estimated cost of tobacco on 
     the medicare and medicaid programs was $25,500,000,000 and 
     $8,200,000,000 respectively. Therefore, reducing these costs, 
     which absorb substantial public resources, by reducing the 
     utilization of tobacco would serve a substantial government 
     interest.
       (5) According to the 1994 Surgeon General's Report, nearly 
     90 percent of all adults who have ever been regular smokers 
     began smoking at or before the age of 18, and, according to a 
     Robert Wood Johnson Foundation Survey, the average smoker 
     begins smoking at age 13 and is hooked by age 14\1/2\. 
     Therefore, reducing the attractiveness of tobacco to children 
     will reduce the likelihood that a child ever tries tobacco, 
     and ensure that the long-term costs of tobacco-related 
     illnesses will be averted.
       (6) Marketing and advertising plays a significant role in 
     attracting teens to tobacco and determining the brands that 
     they use. According to the Centers for Disease Control and 
     Prevention, 86 percent of children who buy their own 
     cigarettes choose one of the 3 most heavily advertised brands 
     (Marlboro (60 percent), Camel (13.3 percent), or Newport 
     (12.7 percent)). In contrast, most adult smokers opt for 
     generic or ``value category'' cigarette brands that rely on 
     little, if any, image advertising.
       (7) Tobacco industry documents and memorandums make clear 
     that the industry considers children a key market, studied 
     the smoking habits of children, and developed products and 
     marketing campaigns that are directly intended to attract 
     children to the purchase and use of their products.
       (8) According to a 1995 study by The Journal of the 
     National Cancer Institute, tobacco marketing has a greater 
     influence in spurring children to take up smoking than 
     exposure to parents or peers who smoke, and must be 
     restricted accordingly.
       (9) Children are more sensitive to tobacco advertising than 
     adults, as evidenced by a 1996 study in the Journal of 
     Marketing that found that children are 3 time more sensitive 
     than adults to cigarette advertising.
       (10) Tobacco advertising in magazines and periodicals 
     influences the decision of children to use tobacco, as cited 
     in the proceedings of the Food and Drug Administration and 
     its supporting documents, In addition, children who report 
     seeing cigarette advertising in magazines are more likely to 
     experiment with tobacco.
       (11) Cartoon images in advertising greatly enhance the 
     appeal of tobacco to children, as evidenced by the ``Joe 
     Camel'' marketing campaign. According to the Centers for 
     Disease Control and Prevention, when advertising for the 
     ``Joe Camel'' campaign rose from $27,000,000 to $43,000,000 
     between 1989 and 1993, Camel's market share among youth 
     increased by more than 50 percent while it's share among 
     adults was unchanged. Therefore, because cartoon advertising 
     has been demonstrated to be a direct appeal to minors and not 
     adults, such images should be banned.
       (12) Children as young as 3 to 6 years of age can recognize 
     a character associated with smoking at the same rate as they 
     recognize cartoons and fast food characters.
       (13) Human and animal images in tobacco advertising, and 
     the themes that these images portray, have a profound impact 
     on children, as evidenced by the ``Marlboro Man'' and the 
     ``Marlboro Horses''. The image of independence and freedom 
     conveyed by these images has led to Marlboro cigarettes 
     capturing nearly 60 percent of the youth market even though 
     the brand accounts for only 12.7 percent of cigarette 
     advertising overall. Therefore, images portraying human and 
     animal images should be restricted to adult-only venues.
       (14) Event sponsorships by tobacco companies increase the 
     likelihood that children will use tobacco as these events 
     connect the product to individuals and activities that are 
     admired and respected by children.
       (15) According to a report in the American Journal of 
     Public Health, the observation of tobacco marketing in stores 
     is a significant predictor of a child's likelihood of 
     experimenting with tobacco, increasing the probability by 38 
     percent. Therefore, in-store marketing should be restricted 
     accordingly.
       (16) Tobacco promotions greatly enhance the likelihood that 
     children will use tobacco products, as evidenced by a 
     November 1996 study in the American Journal of Public Health. 
     This study found that a child who was simply aware of tobacco 
     promotions was twice as likely to use tobacco as a child who 
     was not. In addition, it found that a child who is aware of 
     tobacco promotion, has knowledge of an adolescent friend with 
     promotional items, and participates in a promotional activity 
     is 9.3 time more likely to use tobacco.
       (17) A 1998 study of teenagers in the Journal of the 
     American Medical Association showed that tobacco industry 
     promotional activities influenced previously non-susceptible 
     non-smokers to become susceptible or to experiment with 
     smoking.
       (18) Restrictions on the number and placement of point-of-
     sale advertisements in stores and other outlets that are 
     permissible for children to enter are necessary to reduce the 
     appeal of tobacco products to children, while ensuring that 
     consumers who can legally purchase these products are able to 
     receive useful information.
       (19) As demonstrated in the Food and Drug Administration 
     rule, billboards and other forms of outdoor advertising that 
     are located near schools and playgrounds can affect the 
     decision of children to use tobacco products. Therefore, bans 
     on these forms of advertising near these facilities, and 
     within distances that are frequently traveled by children to 
     access these facilities, would be a narrowly-tailored method 
     of fulfilling the government interest, while still allowing 
     information to be provided in this format to consumers who 
     can legally purchase these products at other locations that 
     are less-frequently viewed by children.
       (20) Through advertisements during, and sponsorship of, 
     sporting events, tobacco has become strongly associated with 
     sports and has become portrayed as an integral part of sports 
     and the healthy lifestyle associated with rigorous sporting 
     activity.
       (21) Because children are influenced by the images, habits, 
     and mannerisms depicted by actresses and actors in movies and 
     other forms of print and film media, tobacco companies should 
     not be permitted to receive payments for the inclusion of 
     logos, symbols, or mottoes in these types of venues if they 
     will be viewed by children under the age of 18 without the 
     supervision of a parent or guardian.
       (22) Because children are influenced by the behavior of 
     musical and other live entertainers whom they admire, 
     payments by tobacco companies to live entertainers or their 
     agents should be restricted at events in which individuals 
     under the age of 18 are permitted to attend, and a 
     substantial number of these individuals would reasonably be 
     expected to attend.
       (23) To ensure that advertising and marketing efforts are 
     not deceptive or misleading, descriptors such as ``light'' 
     and ``low tar'' should be accompanied by a disclaimer that 
     the product is not less hazardous than any other tobacco 
     product.
       (24) Restrictions on the placement of advertisements in 
     buses, subways, and other forms of public transportation that 
     are reasonably expected to be utilized by a significant 
     number of children on a daily basis will ensure that children 
     are not exposed to such advertising for an extended period of 
     time during a commute, and will reduce the susceptibility of 
     children to tobacco advertising accordingly.

     SEC. 1422. ADVERTISING PROVISIONS.

       (a) In General.--A tobacco product may not be sold or 
     distributed in the United States--
       (1) if its advertising or labeling (including the 
     package)--
       (A) contains a cartoon character;
       (B) except as provided in subsection (b), contains a human 
     image or animal image;
       (C) appears in an enclosed stadia during events that are 
     conducted with a reasonable expectation that 5 percent or 
     more of the attendees will be under the age of 18 years;
       (D) appears within 5000 feet of any elementary or secondary 
     school, playground, or public park containing playground 
     equipment;
       (E) appears in public transportation, including buses, 
     subways, and trains, that is reasonably expected to be 
     utilized by 5 percent or more of passengers under the age of 
     18 years on an average daily basis; or
       (F) contains words such as ``light'' or ``low tar'' and is 
     not accompanied by a disclaimer

[[Page S5709]]

     that words such as ``light'' or ``low tar'' describing the 
     product do not render the product less hazardous than any 
     other tobacco product, in addition to such other requirements 
     as the Secretary may impose;
       (2) if a logo, symbol, motto, selling message, recognizable 
     color or pattern of colors, or any other indicia of the 
     tobacco product that would be readily identifiable, and 
     therefore appealing, to individuals under the age of 18 years 
     is contained in a movie, program, or video game that an 
     individual under the age of 18 years is able to attend or 
     utilize without the accompaniment or consent of a parent or 
     adult age 18 years or older for which a direct or indirect 
     payment has been made to ensure its placement; or
       (3) if a direct or indirect payment has been made by any 
     manufacturer, distributor, or retailer to any entity for the 
     purpose of promoting the image or use of a tobacco product 
     through print or film media that is recognizable, and 
     therefore appealing, to individuals under the age of 18 years 
     and at which individuals under the age of 18 years are 
     permitted to attend without the accompaniment or consent of a 
     parent or adult age 18 years or older, or through a live 
     performance by an entertainment artist where individuals 
     under the age of 18 years are permitted to attend without the 
     accompaniment of a parent or adult age 18 years or older, and 
     would reasonable expect that 5 percent or more of the 
     audience will be under the age of 18 years.
       (b) Exception.--The prohibition contained in subsection 
     (a)(1)(B) shall not apply to a tobacco product advertisement 
     that appears in an adult-only facility, or in any publication 
     which the manufacturer, distributor, or retailer demonstrates 
     to the Secretary is a newspaper, magazine, periodical, or 
     other publication whose readers under the age of 18 years 
     constitute 15 percent or less of the total readership as 
     measured by competent and reliable survey evidence, and that 
     is read by less than 2,000,000 persons under the age of 18 
     years as measured by competent and reliable survey evidence.

     SEC. 1423. POINT-OF-SALE RESTRICTIONS.

       (a) In General.--Except as provided in subsection (b), no 
     manufacturer, distributor, or retailer shall engage in point-
     of-sale advertising of any tobacco product in any retail 
     establishment (other than an establishment that sells only 
     tobacco products) in which an individual under the age of 18 
     is present, or permitted to enter, at any time.
       (b) Exception.--
       (1) In general.--A retailer may place 1 point-of-sale 
     advertisement in or at each such location for its brand or 
     the contracted house retailer or private label brand of its 
     wholesaler.
       (2) Display area.--The display area of any point-of-sale 
     advertisement permitted under paragraph (1) (either 
     individually or in the aggregate) shall not be larger than 
     576 square inches and shall consist of black letters on white 
     background or another recognized typography.
       (3) Limitation.--A point-of-sale advertisement permitted 
     under paragraph (1) shall not be attached to or located 
     within 2 feet of any display fixture on which candy is 
     displayed for sale.
       (c) Audio and Video.--Any audio or video format permitted 
     under regulations promulgated by the Secretary may be 
     distributed at the time of sale of a tobacco product to 
     individuals over the age of 18 years, but no such format may 
     be played or shown in or at any location where tobacco 
     products are offered for sale and individuals under the age 
     of 18 years are permitted.
       (d) Definition.--As used in this section, the terms 
     ``point-of-sale advertisement'' and ``point-of-sale 
     advertising'' mean all printed or graphical materials bearing 
     the brand name (alone or in conjunction with any other word), 
     logo, symbol, motto, selling message, or any other indicia of 
     product identification identical or similar to, or 
     identifiable with, those used for any brand of cigarettes or 
     smokeless tobacco, which, when used for its intended purpose, 
     can reasonable be anticipated to be seen by customers at a 
     location where tobacco products are offered for sale.

     SEC. 1424. STATUTORY ADVERTISING RESTRICTIONS.

       (a) Authority of Secretary.--The provisions of this 
     subtitle shall in no way affect the authority of the 
     Secretary to regulate tobacco as prescribed in any other 
     provision of this Act or an amendment made by this Act.
       (b) Authority of Federal Trade Commission.--The provisions 
     of this subtitle shall in no way affect the authority of the 
     Federal Trade Commission to regulate tobacco as prescribed in 
     any other provision of this Act or an amendment made by this 
     Act.
       (c) Severability.--If any provision of this subtitle or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this 
     subtitle and the application of the provisions of such to any 
     person or circumstance shall not be affected thereby.

     SEC. 1425. EFFECTIVE DATE.

       The provisions of this subtitle shall become effective on 
     the date that is 120 days after the enactment of the Act.

     SEC. 1426. SUNSET PROVISION.

       The provisions of this subtitle shall cease to apply 
     beginning on the date on which all tobacco manufacturers to 
     which the Act applies have entered into the Protocol.
                                 ______
                                 

                SNOWE (AND JEFFORDS) AMENDMENT NO. 2478

  (Ordered to lie on the table.)
  Ms. SNOWE (for herself and Mr. Jeffords) submitted an amendment 
intended to be proposed by them to the bill, S. 1415, supra; as 
follows:

       On page 194, after line 8, after the period add the 
     following: ``The net revenues credited to the trust fund 
     under section 401(b)(3) and allocated to this account shall 
     be used for smoking prevention and counter-advertising 
     programs as provided for in clauses (i) and (ii) of paragraph 
     (2)(C), with not less than 50 percent of such revenues being 
     used for State and community-based prevention activities 
     under section 1981C(b) of the Public Health Service Act.''.
                                 ______
                                 

                 SNOWE (AND OTHERS) AMENDMENT NO. 2479

  (Ordered to lie on the table.)
  Ms. SNOWE (for herself, Mr. Smith of Oregon, and Mr. Robb) submitted 
an amendment intended to be proposed by them to the bill, S. 1415, 
supra; as follows:

       On page 121, strike lines 7 through 13, and insert the 
     following:

       (III) Other.--Other programs including--

       (aa) the required completion by individuals under 18 years 
     of age of a mandatory, State approved anti-smoking, anti-drug 
     and anti-alcohol class, prior to such individual receiving a 
     drivers permit or license;
       (bb) the mandatory suspension of the drivers permit or 
     license of an individual under 18 years for the possession 
     of, purchase of, or attempting to purchase tobacco products; 
     and
       (cc) the imposition of fines, community service 
     requirements, or other programs as determined appropriate by 
     the State.
                                 ______
                                 

                       ALLARD AMENDMENT NO. 2480

  (Ordered to lie on the table.)
  Mr. ALLARD submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       On page 210, between lines 18 and 19, insert the following:

     SEC. 456. ACTION BY STATE LEGISLATURE.

       Amounts made available to a State under this Act shall be 
     subject to appropriation by the State legislature, consistent 
     with the terms and conditions required under this Act.
                                 ______
                                 

                   DOMENICI AMENDMENTS NOS. 2481-2489

  (Ordered to lie on the table.)
  Mr. Domenici submitted nine amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2481

       Beginning on page 200, strike line 6 and all that follows 
     through line 19 on page 201, and insert the following:
       (b) Use of Funds.--A State may use amounts received under 
     this section as the State determines appropriate to support 
     an effective anti-teen smoking and anti-drug use program.

     SEC. ____. LIMITATION ON ATTORNEYS FEES.

       Notwithstanding any other provision of this Act, amounts 
     paid by a State to attorneys acting on behalf of the State or 
     political subdivision of the State in connection with the 
     past or future settlemtn of an action maintained by the State 
     against 1 or more tobacco companies to recover tobacco-
     related medicaid expenditures, or for efforts that in whole 
     or in part resulted in or created a model for programs in 
     this Act, or for other causes of action to which the 
     settlement agreement dated June 20, 1997 would apply, shall 
     not exceed the lesser of--
       (1) an amount equal to $2,000 per hour for each hour spent 
     productively and at risk; or
       (2) an amount equal to 10 percent of the amount which the 
     State receives under section 451(a) for the fiscal year 
     involved.
                                  ____


                           Amendment No. 2482

       At the appropriate place in title XIV, insert the 
     following:

     SEC. ____. LIMITATION ON ATTORNEYS FEES.

       Notwithstanding any other provision of this Act, amounts 
     paid by a State to attorneys acting on behalf of the State or 
     political subdivision of the State in connection with the 
     past or future settlement of an action maintained by the 
     State against 1 or more tobacco companies to recover tobacco-
     related medicaid expenditures, or for efforts that in whole 
     or in part resulted in or created a model for programs in 
     this Act, or for other causes of action to which the 
     settlement agreement dated June 20, 1997 would apply, shall 
     not exceed the lesser of--
       (1) an amount equal to $2,000 per hour for each hour spent 
     productively and at risk; or
       (2) an amount equal to 10 percent of the amount which the 
     State receives under section 451(a) for the fiscal year 
     involved.
                                  ____


                           Amendment No. 2483

       On page 199, after line 23, add the following:
       (f) Veterans Account.--
       (1) In general.--There is established within the trust fund 
     a separate account, to be known as the Veterans Account. Of 
     the net revenues credited to the trust fund under section 
     401(b)(1), $1,000,000,000 for each fiscal year shall be 
     allocated to the Veterans Account.

[[Page S5710]]

       (2) Authorization of appropriations.--Amounts in the 
     Veterans Account shall be available to the extent and in the 
     amounts provided in advance in appropriations acts, to remain 
     available until expended, only for purposes of enabling the 
     Department of Veterans Affairs to provide care and services 
     under chapter 17 of title 38, United States Code.
                                  ____

       On page 199, after line 23, add the following:
       (f) Veterans Account.--
       (1) In general.--There is established within the trust fund 
     a separate account, to be known as the Veterans Account. Of 
     the net revenues credited to the trust fund under section 
     401(b)(1), $1,000,000,000 for each fiscal year shall be 
     allocated to the Veterans Account.
       (2) Authorization of appropriations.--Amounts in the 
     Veterans Account shall be available to the extent and in the 
     amounts provided in advance in appropriations acts, to remain 
     available until expended, only for purposes of enabling the 
     Department of Veterans Affairs to provide care and services 
     under chapter 17 of title 38, United States Code.
                                  ____


                           Amendment No. 2484

       Beginning on page 192, line 6, strike all through page 199, 
     line 23, and insert the following:

     SEC. 451. ALLOCATION ACCOUNTS.

       (a) State Litigation Settlement Account.--
       (1) In general.--There is established within the Trust Fund 
     a separate account, to be known as the State Litigation 
     Settlement Account. Of the net revenues credited to the Trust 
     Fund under section 401(b)(1) for each fiscal year, 20 percent 
     of the amounts designated for allocation under the settlement 
     payments shall be allocated to this account. Such amounts 
     shall be reduced by the additional estimated Federal 
     expenditures that will be incurred as a result of State 
     expenditures under section 452, which amounts shall be 
     transferred to the miscellaneous receipts of the Treasury. 
     If, after 10 years, the estimated 25-year total amount 
     projected to received in this account will be different than 
     amount than $196,500,000,000, then beginning with the 
     eleventh year the 20 percent share will be adjusted as 
     necessary, to a percentage not in excess of 25 percent and 
     not less than 15 percent, to achieve that 25-year total 
     amount.
       (2) Authorization of appropriations.--Amounts in the State 
     Litigation Settlement Account shall be available to the 
     extent and only in the amounts provided in advance in 
     appropriations Acts, to remain available until expended.
       (3) Distribution formula.--The Secretary of the Treasury 
     shall consult with the National Governors Association, the 
     National Association of Attorneys General, and the National 
     Conference of State Legislators on a formula for the 
     distribution of amounts in the State Litigation Settlement 
     Account and report to the Congress within 90 days after the 
     date of enactment of this Act with recommendations for 
     implementing a distribution formula.
       (4) Use of funds.--A State may use amounts received under 
     this subsection as the State determines appropriate, 
     consistent with the other provisions of this Act.
       (5) Funds not available as Medicaid reimbursement.--Funds 
     in the account shall not be available to the Secretary as 
     reimbursement of Medicaid expenditures or considered as 
     Medicaid overpayments for purposes of recoupment.
       (b) Public Health Allocation Account.--
       (1) In general.-- There is established within the trust 
     fund a separate account, to be known as the Public Health 
     Account. Eleven percent of the net revenues credited to the 
     trust fund under section 401(b)(1) and 50 percent of the net 
     revenues credited to the trust fund under section 401(b)(3) 
     shall be allocated to this account.
       (2) Authorization of appropriations.--Amounts in the Public 
     Health Account shall be available to the extent and only in 
     the amounts provided in advance in appropriations Acts, to 
     remain available until expended, only for the purposes of:
       (A) Cessation and other treatments.--Of the total amounts 
     allocated to this account, not less than 25 percent, but not 
     more than 35 percent are to be used to carry out smoking 
     cessation activities under part D of title XIX of the Public 
     Health Service Act, as added by title II of this Act.
       (B) Indian health service.--Of the total amounts allocated 
     to this account, not less than 3 percent, but not more than 7 
     percent are to be used to carry out activities under section 
     453.
       (C) Education and prevention.--Of the total amounts 
     allocated to this account, not less than 50 percent, but not 
     more than 65 percent are to be used to carry out--
       (i) counter-advertising activities under section 1982 of 
     the Public Health Service Act as amended by this Act;
       (ii) smoking prevention activities under section 223;
       (iii) surveys under section 1991C of the Public Health 
     Service Act, as added by this Act (but, in no fiscal year may 
     the amounts used to carry out such surveys be less than 10 
     percent of the amounts available under this subsection); and
       (iv) international activities under section 1132.
       (D) Enforcement.--Of the total amounts allocated to this 
     account, not less than 17.5 percent nor more than 22.5 
     percent are to be used to carry out the following:
       (i) Food and Drug Administration activities.

       (I) The Food and Drug Administration shall receive not less 
     than 15 percent of the funds provided in subparagraph (D) in 
     the first fiscal year beginning after the date of enactment 
     of this Act, 35 percent of such funds in the second year 
     beginning after the date of enactment, and 50 percent of such 
     funds for each fiscal year beginning after the date of 
     enactment, as reimbursements for the costs incurred by the 
     Food and Drug Administration in implementing and enforcing 
     requirements relating to tobacco products.
       (II) No expenditures shall be made under subparagraph (D) 
     during any fiscal year in which the annual amount 
     appropriated for the Food and Drug Administration is less 
     than the amount so appropriated for the prior fiscal year.

       (ii) State retail licensing activities under section 251.
       (iii) Anti-Smuggling activities under section 1141.
       (c) Health and Health-related Research Allocation 
     Account.--
       (1) In general.-- There is established within the trust 
     fund a separate account, to be known as the Health and 
     Health-Related Research Account. Of the net revenues credited 
     to the trust fund under section 401(b)(1), 11 percent shall 
     be allocated to this account.
       (2) Authorization of appropriations.--Amounts in the Health 
     and Health-Related Research Account shall be available to the 
     extent and in the amounts provided in advance in 
     appropriations acts, to remain available until expended, only 
     for the following purposes:
       (A) $750,000 shall be made available in fiscal year 1999 
     for the study to be conducted under section 1991 of the 
     Public Health Service Act.
       (B) National Institutes of Health Research under section 
     1991D of the Public Health Service Act, as added by this Act. 
     Of the total amounts allocated to this account, not less than 
     75 percent, but not more than 80 percent shall be used for 
     this purpose.
       (C) Centers for Disease Control under section 1991C of the 
     Public Health Service Act, as added by this Act, and Agency 
     for Health Care Policy and Research under section 1991E of 
     the Public Health Service Act, as added by this Act, 
     authorized under sections 2803 of that Act, as so added. Of 
     the total amounts allocated to this account, not less than 12 
     percent, but not more than 18 percent shall be used for this 
     purpose.
       (D) National Science Foundation Research under section 454. 
     Of the total amounts allocated to this account, not less than 
     1 percent, but not more than 1 percent shall be used for this 
     purpose.
       (E) Cancer Clinical Trials under section 455. Of the total 
     amounts allocated to this account, $750,000,000 shall be used 
     for the first 3 fiscal years for this purpose.
       (d) Farmers Assistance Allocation Account.--
       (1) In general.-- There is established within the trust 
     fund a separate account, to be known as the Farmers 
     Assistance Account. Of the net revenues credited to the trust 
     fund under section 401(b)(1) in each fiscal year--
       (A) 8 percent shall be allocated to this account for the 
     first 10 years after the date of enactment of this Act; and
       (B) 2 percent shall be allocated to this account for each 
     subsequent year until the account has received a total of 
     $28,500,000,000.
       (2) Authorization of appropriations.--Amounts in the 
     Farmers Assistance Account shall be available to the extent 
     and in the amounts provided in advance in appropriations 
     acts, to remain available until expended for the purposes of 
     section 1012.
       (e) Medicare Preservation Account.--There is established 
     within the trust fund a separate account, to be known as the 
     Medicare Preservation Account. Amounts in the trust fund 
     shall be allocated to this account as follows:
       (1) 50 percent of the net revenues credited to the trust 
     fund under section 401(b).
       (2) In any year, the net amounts credited to the trust fund 
     for payments under section 402(b) are greater than the net 
     revenues originally estimated under section 401(b), 50 
     percent of the amount of any such excess.
       (3) Beginning in the eleventh year beginning after the date 
     of enactment of this Act, 6 percent of the net revenues 
     credited to the trust fund under section 401(b)(1).
       (f) Transfer of Revenues to Federal Hospital Insurance 
     Trust Fund.--Section 1817(a) of the Social Security Act (42 
     U.S.C. 1395i(a)) is amended by striking ``and'' at the end of 
     paragraph (1), by striking the period at the end of paragraph 
     (2) and inserting ``; and'', and by inserting after paragraph 
     (2) the following:
       ``(3) the amounts allocated to the Medicare Preservation 
     Account of the National Tobacco Trust Fund.''
                                  ____


                           Amendment No. 2485

       At the appropriate place, insert the following:

     SEC. ____. EXPEDITED JUDICIAL REVIEW.

       (a) Expedited Review.--
       (1) In general.--Any individual adversely affected by--
       (A) a penalty for a violation of the lookback provisions of 
     subtitle A of title II;
       (B) an assessment for an initial or annual payment under 
     section 403;

[[Page S5711]]

       (C) any restrictions on marketing and labeling under this 
     Act (or an amendment made by this Act) either foreign or 
     domestic; or
       (D) any licensing fee under section 1121;
     may bring an action, in the United States District Court for 
     the District of Columbia, for declaratory judgment and 
     injunctive relief on the ground that such provision or its 
     application to such individual violates the Constitution.
       (2) Delivery of copy.--A copy of any complaint in an action 
     brought under paragraph (1) shall be promptly delivered to 
     the Secretary of the Senate and the Clerk of the House of 
     Representatives, and each House of Congres shall have the 
     right to intervene in such action.
       (3) Right of intervention.--Nothing in this section or in 
     any other law shall infringe upon the right of the House of 
     Representatives to intervene in an action brought under 
     paragraph (1) without the necessity of adopting a resolution 
     to authorize such intervention.
       (b) Appeal to Supreme Court.--Notwithstanding any other 
     provision of law, any order of the United States District 
     Court for the District of Columbia which is issued pursuant 
     to an action brought under paragraph (1) of subsection (a) 
     shall be reviewable by appeal directly to the Supreme Court 
     of the United States. Any such appeal shall be taken by a 
     notice of appeal filed within 10 calendar days after such 
     order is entered; and the jurisdictional statement shall be 
     filed within 30 calendar days after such order is entered. No 
     stay of an order issued pursuant to an action brought under 
     paragraph (1) of subsection (a) shall be issued by a single 
     Justice of the Supreme Court.
       (c) Expedited Consideration.--It shall be the duty of the 
     District Court for the District of Columbia and the Supreme 
     Court of the United States to advance on the docket and to 
     expedite to the greatest possible extent the disposition of 
     any matter brought under subsection (a).
       (d) Adjustment of Industry Payments.--
       (1) In general.--Except as provided in paragraph (2) and 
     notwithstanding section 402(b), the amount of the annual 
     payments required of a manufacturer under such section for a 
     fiscal year shall be equal to the product of $0.75 and the 
     number of packages of cigarettes sold in the previous year by 
     such manufacturer.
       (2) Increase in amount.--Paragraph (1) shall cease to apply 
     on the earlier of--
       (A) the date on which a final ruling has been made as to 
     the constitutionality of all of the provisions described in 
     subsection (a)(1); or
       (B) the date that is 3 years after the date of enactment of 
     this Act.
                                  ____


                           Amendment No. 2486

       Beginning on page 192, line 6, strike all through page 199, 
     line 23, and insert the following:

     SEC. 451. ALLOCATION ACCOUNTS.

       (a) State Litigation Settlement Account.--
       (1) In general.--There is established within the Trust Fund 
     a separate account, to be known as the State Litigation 
     Settlement Account. Of the net revenues credited to the Trust 
     Fund under section 401(b)(1) for each fiscal year, 20 percent 
     of the amounts designated for allocation under the settlement 
     payments shall be allocated to this account. Such amounts 
     shall be reduced by the additional estimated Federal 
     expenditures that will be incurred as a result of State 
     expenditures under section 452, which amounts shall be 
     transferred to the miscellaneous receipts of the Treasury. 
     If, after 10 years, the estimated 25-year total amount 
     projected to received in this account will be different than 
     amount than $196,500,000,000, then beginning with the 
     eleventh year the 20 percent share will be adjusted as 
     necessary, to a percentage not in excess of 25 percent and 
     not less than 15 percent, to achieve that 25-year total 
     amount.
       (2) Authorization of appropriations.--Amounts in the State 
     Litigation Settlement Account shall be available to the 
     extent and only in the amounts provided in advance in 
     appropriations Acts, to remain available until expended.
       (3) Distribution formula.--The Secretary of the Treasury 
     shall consult with the National Governors Association, the 
     National Association of Attorneys General, and the National 
     Conference of State Legislators on a formula for the 
     distribution of amounts in the State Litigation Settlement 
     Account and report to the Congress within 90 days after the 
     date of enactment of this Act with recommendations for 
     implementing a distribution formula.
       (4) Use of funds.--A State may use amounts received under 
     this subsection as the State determines appropriate, 
     consistent with the other provisions of this Act.
       (5) Funds not available as Medicaid reimbursement.--Funds 
     in the account shall not be available to the Secretary as 
     reimbursement of Medicaid expenditures or considered as 
     Medicaid overpayments for purposes of recoupment.
       (b) Public Health Allocation Account.--
       (1) In general.-- There is established within the trust 
     fund a separate account, to be known as the Public Health 
     Account. Eleven percent of the net revenues credited to the 
     trust fund under section 401(b)(1) and 50 percent of the net 
     revenues credited to the trust fund under section 401(b)(3) 
     shall be allocated to this account.
       (2) Authorization of appropriations.--Amounts in the Public 
     Health Account shall be available to the extent and only in 
     the amounts provided in advance in appropriations Acts, to 
     remain available until expended, only for the purposes of:
       (A) Cessation and other treatments.--Of the total amounts 
     allocated to this account, not less than 25 percent, but not 
     more than 35 percent are to be used to carry out smoking 
     cessation activities under part D of title XIX of the Public 
     Health Service Act, as added by title II of this Act.
       (B) Indian health service.--Of the total amounts allocated 
     to this account, not less than 3 percent, but not more than 7 
     percent are to be used to carry out activities under section 
     453.
       (C) Education and prevention.--Of the total amounts 
     allocated to this account, not less than 50 percent, but not 
     more than 65 percent are to be used to carry out--
       (i) counter-advertising activities under section 1982 of 
     the Public Health Service Act as amended by this Act;
       (ii) smoking prevention activities under section 223;
       (iii) surveys under section 1991C of the Public Health 
     Service Act, as added by this Act (but, in no fiscal year may 
     the amounts used to carry out such surveys be less than 10 
     percent of the amounts available under this subsection); and
       (iv) international activities under section 1132.
       (D) Enforcement.--Of the total amounts allocated to this 
     account, not less than 17.5 percent nor more than 22.5 
     percent are to be used to carry out the following:
       (i) Food and Drug Administration activities.

       (I) The Food and Drug Administration shall receive not less 
     than 15 percent of the funds provided in subparagraph (D) in 
     the first fiscal year beginning after the date of enactment 
     of this Act, 35 percent of such funds in the second year 
     beginning after the date of enactment, and 50 percent of such 
     funds for each fiscal year beginning after the date of 
     enactment, as reimbursements for the costs incurred by the 
     Food and Drug Administration in implementing and enforcing 
     requirements relating to tobacco products.
       (II) No expenditures shall be made under subparagraph (D) 
     during any fiscal year in which the annual amount 
     appropriated for the Food and Drug Administration is less 
     than the amount so appropriated for the prior fiscal year.

       (ii) State retail licensing activities under section 251.
       (iii) Anti-Smuggling activities under section 1141.
       (c) Health and Health-related Research Allocation 
     Account.--
       (1) In general.-- There is established within the trust 
     fund a separate account, to be known as the Health and 
     Health-Related Research Account. Of the net revenues credited 
     to the trust fund under section 401(b)(1), 11 percent shall 
     be allocated to this account.
       (2) Authorization of appropriations.--Amounts in the Health 
     and Health-Related Research Account shall be available to the 
     extent and in the amounts provided in advance in 
     appropriations acts, to remain available until expended, only 
     for the following purposes:
       (A) $750,000 shall be made available in fiscal year 1999 
     for the study to be conducted under section 1991 of the 
     Public Health Service Act.
       (B) National Institutes of Health Research under section 
     1991D of the Public Health Service Act, as added by this Act. 
     Of the total amounts allocated to this account, not less than 
     75 percent, but not more than 80 percent shall be used for 
     this purpose.
       (C) Centers for Disease Control under section 1991C of the 
     Public Health Service Act, as added by this Act, and Agency 
     for Health Care Policy and Research under section 1991E of 
     the Public Health Service Act, as added by this Act, 
     authorized under sections 2803 of that Act, as so added. Of 
     the total amounts allocated to this account, not less than 12 
     percent, but not more than 18 percent shall be used for this 
     purpose.
       (D) National Science Foundation Research under section 454. 
     Of the total amounts allocated to this account, not less than 
     1 percent, but not more than 1 percent shall be used for this 
     purpose.
       (E) Cancer Clinical Trials under section 455. Of the total 
     amounts allocated to this account, $750,000,000 shall be used 
     for the first 3 fiscal years for this purpose.
       (d) Farmers Assistance Allocation Account.--
       (1) In general.-- There is established within the trust 
     fund a separate account, to be known as the Farmers 
     Assistance Account. Of the net revenues credited to the trust 
     fund under section 401(b)(1) in each fiscal year--
       (A) 8 percent shall be allocated to this account for the 
     first 10 years after the date of enactment of this Act; and
       (B) 2 percent shall be allocated to this account for each 
     subsequent year until the account has received a total of 
     $28,500,000,000.
       (2) Authorization of appropriations.--Amounts in the 
     Farmers Assistance Account shall be available to the extent 
     and in the amounts provided in advance in appropriations 
     acts, to remain available until expended for the purposes of 
     section 1012.
       (e) Medicare Preservation Account.--There is established 
     within the trust fund a separate account, to be known as the 
     Medicare Preservation Account. If, in any year, the net 
     amounts credited to the trust fund

[[Page S5712]]

     for payments under section 402(b) are greater than the net 
     revenues originally estimated under section 401(b), 50 
     percent of the amount of any such excess shall be credited to 
     the Medicare Preservation Account. Beginning in the eleventh 
     year beginning after the date of enactment of this Act, 6 
     percent of the net revenues credited to the trust fund under 
     section 401(b)(1) shall be allocated to this account. Funds 
     credited to this account shall be transferred to the Medicare 
     Hospital Insurance Trust Fund.
       (f) Rate Reduction Account.--
       (1) In general.--There is established within the trust fund 
     a separate account, to be known as the Rate Reduction 
     Account. Fifty percent of the net revenues credited to the 
     trust fund under section 401(b) shall be allocated to this 
     account.
       (2) Appropriation.--Amounts so allocated are hereby 
     appropriated to the general fund of the Treasury for the 
     purposes of providing the revenue offset for the amendments 
     made by section 451A of this Act.

     SEC. 451A. REDUCTION OF 15 AND 28 PERCENT RATES.

       (a) In General.--The tables contained subsections (a) 
     through (e) of section 1 of the Internal Revenue Code of 1986 
     (relating to tax imposed) are amended by striking ``15%'' and 
     ``28%'' each place they appear and insert ``14.8%'' and 
     ``27.65%'', respectively.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.
                                  ____


                           Amendment No. 2487

       At the appropriate place insert the following:

     SEC. ____. INCREASE AND SIMPLIFICATION OF DEPENDENT CARE TAX 
                   CREDIT.

       (a) Increase in Maximum Credit Rate.--Section 21(a)(2) of 
     the Internal Revenue Code of 1986 (defining applicable 
     percentage) is amended to read as follows:
       ``(2) Applicable percentage defined.--For purposes of 
     paragraph (1), the term `applicable percentage' means 50 
     percent reduced (but not below 20 percent) by 1 percentage 
     point for each $1,000, or fraction thereof, by which the 
     taxpayers's adjusted gross income for the taxable year 
     exceeds $30,000.''.
       (b) Elimination of Household Maintenance Test.--Paragraph 
     (1) of section 21(e) of the Internal Revenue Code of 1986 
     (relating to special rules) is repealed.
       (c) Inflation Adjustment for Certain Amounts.--Section 
     21(e) of the Internal Revenue Code of 1986 (relating to 
     special rules), as amended by subsection (c), is amended by 
     adding at the end the following:
       ``(12) Inflation adjustments.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 1999, the $30,000 amount referred to in 
     subsection (a)(2) and the dollar amounts referred to in 
     subsection (c) and paragraph (11) of this subsection shall be 
     increased by an amount equal to such dollar amount multiplied 
     by the cost-of-living adjustment determined under section 
     1(f)(3) for the calendar year in which the taxable year 
     begins, by substituting `calendar year 1998' for `calendar 
     year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any dollar amount after being increased 
     under subparagraph (A) is not a multiple of $10, such dollar 
     amount shall be rounded to the nearest multiple of $10.''.
       (d) Effective Date.--The amendments made by this section 
     apply to taxable years beginning after December 31, 1998.
       (e) Appropriation.--Notwithstanding any other provision of 
     this Act, from amounts credited to the National Tobacco Trust 
     Fund but not appropriated by this Act, there is appropriated 
     to the general fund in the Treasury an amount equal to the 
     reduction in revenues to the Treasury resulting from the 
     amendments made by this section.
                                  ____


                           Amendment No. 2488

       On page 199, after line 23, add the following:
       (f) Termination of Accounts.--
       (1) In general.--The accounts established under subsections 
     (a), (b), (c), and (d) shall terminate on the date that is 10 
     years after the date of enactment of this Act.
       (2) Use of funds.--Any amounts in the accounts terminated 
     under paragraph (1) that remain unobligated on the 
     termination date described in such paragraph, and any amounts 
     contained in the trust fund in a fiscal year after the 
     termination of such accounts, shall be used as follows:
       (A) 50 percent of such amounts shall be used to offset tax 
     cuts.
       (B) 50 percent of such amounts shall be transferred to the 
     Medicare Preservation Account established under subsection 
     (e).
                                  ____


                           Amendment No. 2489

       At the appropriate place in the bill, insert the follows:

     SEC.    . WINDFALL PROFIT EXCISE TAX ON CERTAIN EXCESSIVE 
                   ATTORNEY FEES.

       (a) In General.--Subtitle D of the Internal Revenue Code of 
     1986 (relating to miscellaneous excise taxes) is amended by 
     inserting after chapter 44 the following:

     ``SEC. 4986. IMPOSITION OF TAX.

       ``(a) In General.--There is hereby imposed on any taxpayer 
     who receives a windfall profit on any taxable award of 
     attorney fees a tax equal to the applicable percentage of 
     such windfall profit.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Taxable award of attorney fees.--The term `taxable 
     award of attorney fees' means that portion of the award of 
     attorney fees with respect to a judgment in or settlement of 
     any litigation by a State or class-action plaintiffs against 
     a tobacco manufacturer or a group of tobacco manufacturers 
     for damages relating to tobacco-related diseases, conditions, 
     or addiction which exceeds any court approved expenses 
     relating to such litigation.
       ``(2) Windfall profit.--The term `windfall profit' means 
     that portion of a taxable award of attorney fees which 
     exceeds 5 percent of the amount any such judgment or 
     settlement or which exceeds $1,000 per hour.
       ``(3) Applicable percentage.--The applicable percentage 
     is--
       ``(A) 20 percent with respect to that portion of the 
     windfall profit exceeding 5 percent but not 10 percent of the 
     amount of such judgment or settlement or which exceed $1,000 
     per hour but not $1,500 per hour, and
       ``(B) 40 percent with respect to that portion of such 
     windfall profit exceeding 10 percent of such amount or which 
     exceed $1,500 per hour.
       ``(c) Administrative Provisions.--
       ``(1) Withholding.--In the case of any windfall profit 
     which is wages (within the meaning of section 3401) the 
     amount deducted and withheld under section 3402 shall be 
     increased by the amount of the tax imposed by this section on 
     such windfall profit.
       ``(2) Other administrative provisions.--For purposes of 
     subtitle F, any tax imposed by this section shall be treated 
     as a tax imposed by subtitle A.''
       (b) Conforming Amendment.--The table of chapters of 
     subtitle D of such Code is amended by inserting after the 
     item relating to chapter 44 the following:

``Chapter 45. Windfall profit tax on certain attorney fees.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to awards received after December 31, 1997.
                                 ______
                                 

                    GORTON AMENDMENTS NOS. 2490-2491

  (Ordered to lie on the table.)
  Mr. GORTON submitted two amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2490

       At the appropriate place in the pending amendment, add the 
     following:

     SEC. 604. STATE TOBACCO TAX COMPLIANCE

       (a) In General.--An Indian tribe, tribal corporation, or 
     individual member of an Indian tribe engaged in tobacco 
     retailing shall collect all applicable tobacco excise and 
     sales taxes lawfully imposed by the State, within the 
     exterior boundaries of which the purchase occurs, on 
     nonmembers of the Indian tribe as a consequence of the 
     purchase of tobacco products by the nonmember from the Indian 
     tribe, tribal corporation, or individual member.
       (b) Remittance to Treasury Department.--To the extent that 
     all such taxes are not collected and not remitted to the 
     appropriate State by the Indian tribe, tribal corporation, or 
     individual member of an Indian tribe (or, in the manner 
     provided by State law, by any other person), the tribe, 
     tribal corporation, or individual member shall remit such 
     taxes to the Treasury of the United States, which shall, in 
     turn, remit such taxes to the State in which the purchase by 
     the nonmember took place. The Secretary of the Treasury of 
     the United States shall promulgate regulations within 120 
     days to enforce this section.
       (c) Exemption Under State Law.--Subsections (a) and (b) 
     shall not apply if (1) the State's laws provide that Indian 
     tribes or tribal corporations are not obligated to remit 
     excise and sales taxes to the State on the condition that 
     such tribe or tribal corporation imposes and collects tobacco 
     excise and sales taxes on purchases of tobacco products by 
     non-members that are equal to or greater than the applicable 
     excise and sales taxes lawfully imposed by the State on the 
     purchase of tobacco products within the State's exterior 
     borders; or (2) the State's laws exempt or waive the 
     application of such taxes. Nothing in this section is 
     intended to prohibit a State from enacting a law consistent 
     with the provisions of this section.
       (d) Tribal-State Agreements.--Subsections (a) and (b) shall 
     not apply to Indian tribes or tribal corporations if the 
     tribe or tribal corporation has an agreement with the State, 
     within which the purchase of tobacco products by nonmembers 
     occurs, on the collection and allocation of excise and sales 
     taxes on the purchase of tobacco products by nonmembers. 
     Nothing in this section prohibits a tribe and a State from 
     entering into such an agreement after the date of enactment 
     of this Act.
                                  ____


                           Amendment No. 2491

       At the appropriate place in the pending amendment, add the 
     following:

     SEC. 604. STATE TOBACCO TAX COMPLIANCE.

       An Indian tribe or tribal corporation shall collect any 
     excise or sales tax imposed by a State, within the exterior 
     borders of which the sale occurs, on non-members of the 
     Indian tribe as a consequence of the purchase of tobacco 
     products by the non-member from the Indian tribe or tribal 
     corporation. The Indian tribe or tribal corporation shall 
     remit such taxes collected to the Treasury of the United 
     States, which shall, in turn, remit the taxes to the State in 
     which they were collected.

[[Page S5713]]

                                 ______
                                 

            LUGAR (AND McCONNELL) AMENDMENTS NOS. 2492-2502

  (Ordered to lie on the table.)
  Mr. LUGAR (for himself and Mr. McConnell) submitted 11 amendments to 
be proposed by them to the bill, S. 1415, supra; as follows:

                           Amendment No. 2492

       Strike section 1024.
                                  ____


                           Amendment No. 2493

       Strike title X.
                                  ____


                           Amendment No. 2494

       Strike section 1021(d)(4)(E).
                                  ____


                           Amendment No. 2495

       Strike section 1021(d)(13).
                                  ____


                           Amendment No. 2496

       Strike title X (relating to long-term economic assistance 
     for farmers).
                                  ____


                           Amendment No. 2497

       Strike title X and insert the following:

                  TITLE X--PAYMENTS TO TOBACCO FARMERS

     SEC. 1001. BUDGETARY TREATMENT.

       Subtitle A of title XV constitutes budget authority in 
     advance of appropriations Acts and represents the obligation 
     of the Federal Government to provide payments to States and 
     eligible persons in accordance with subtitle A of title XV.

     SEC. 1002. BUYOUT PAYMENTS TO OWNERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1514, the Secretary of Agriculture shall make buyout payments 
     for each of the 1999 through 2001 marketing years for each 
     kind of tobacco involved to an owner that owns quota at the 
     time of entering into a tobacco transition contract.
       (b) Allocation.--Of the total amount of buyout payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Compensation for Lost Value.--The payment shall 
     constitute compensation for the lost value to the owner of 
     the quota.
       (d) Payment Calculation.--Under this section, the total 
     amount of the buyout payment made to an owner shall be 
     determined by multiplying--
       (1) $8.00; by
       (2) the average annual quantity of quota owned by the owner 
     during the 1995 through 1997 crop years.

     SEC. 1003. TRANSITION PAYMENTS TO PRODUCERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1515, the Secretary of Agriculture shall make transition 
     payments for each of the 1999 through 2001 marketing years 
     for each kind of tobacco produced, to a producer that--
       (1) produced the kind of tobacco for each of the 1995 
     through 1997 crops; and
       (2) entered into a tobacco transition contract.
       (b) Allocation.--Of the total amount of transition payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Transition Payments Limited to Leased Quota.--A 
     producer shall be eligible for transition payments only for 
     the portion of the production of the producer that is subject 
     to quota that is leased (as defined in section 1503(5) of 
     this Act) during the 3 crop years described in subsection 
     (a)(1).
       (d) Compensation for Lost Revenue.--The payments shall 
     constitute compensation for the lost revenue incurred by a 
     tobacco producer for a kind of tobacco.
       (e) Production History; Production.--
       (1) Production history.--The Secretary shall base a 
     transition payment made to a producer on the average quantity 
     of tobacco subject to a marketing quota that is produced by 
     the producer for each of the 1995 through 1997 crops.
       (2) Production.--The producer shall have the burden of 
     demonstrating to the Secretary the production of tobacco for 
     each of the 1995 through 1997 crops.
       (f) Payment Calculation.--Under this section, the total 
     amount of the transition payment made to a producer shall be 
     determined by multiplying--
       (1) $4.00; by
       (2) the average quantity of the kind of tobacco produced by 
     the producer for each of the 1995 through 1997 crops.

     SEC. 1004. EFFECTIVE DATE.

       This title takes effect on the day after the date of 
     enactment of this Act.

                           Amendment No. 2498

       Strike title X and insert the following:

                      TITLE X--TOBACCO TRANSITION

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``Tobacco Transition Act''.

     SEC. 1002. PURPOSES.

       The purposes of this title are--
       (1) to authorize the use of binding contracts between the 
     United States and tobacco quota owners and tobacco producers 
     to compensate them for the termination of Federal programs 
     that support the production of tobacco in the United States;
       (2) to make available to States funds for economic 
     assistance initiatives in counties of States that are 
     dependent on the production of tobacco; and
       (3) to terminate Federal programs that support the 
     production of tobacco in the United States.

     SEC. 1003. DEFINITIONS.

       In this title:
       (1) Association.--The term ``association'' means a 
     producer-owned cooperative marketing association that has 
     entered into a loan agreement with the Commodity Credit 
     Corporation to make price support available to producers.
       (2) Buyout payment.--The term ``buyout payment'' means a 
     payment made to a quota owner under section 1014 for each of 
     the 1999 through 2001 marketing years.
       (3) Contract.--The term ``contract'' or ``tobacco 
     transition contract'' means a contract entered into under 
     section 1012.
       (4) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (5) Lease.--The term ``lease'' means--
       (A) the rental of quota on either a cash rent or crop share 
     basis;
       (B) the rental of farmland to produce tobacco under a farm 
     marketing quota; or
       (C) the lease and transfer of quota for the marketing of 
     tobacco produced on the farm of a lessor.
       (6) Marketing year.--The term ``marketing year'' means--
       (A) in the case of Flue-cured tobacco, the period beginning 
     July 1 and ending the following June 30; and
       (B) in the case of each other kind of tobacco, the period 
     beginning October 1 and ending the following September 30.
       (7) Owner.--The term ``owner'' means a person that, at the 
     time of entering into a tobacco transition contract, owns 
     quota provided by the Secretary.
       (8) Price support.--The term ``price support'' means a 
     nonrecourse loan provided by the Commodity Credit Corporation 
     through an association for a kind of tobacco.
       (9) Producer.--The term ``producer'' means a person that 
     for each of the 1995 through 1997 crops of tobacco (as 
     determined by the Secretary) that were subject to quota--
       (A) leased quota;
       (B) shared in the risk of producing a crop of tobacco; and
       (C) marketed the tobacco subject to quota.
       (10) Quota.--The term ``quota'' means the right to market 
     tobacco under a basic marketing quota or acreage allotment 
     allotted to a person under the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1281 et seq.).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (12) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (13) Tobacco.--The term ``tobacco'' means any kind of 
     tobacco for which--
       (A) a marketing quota is in effect;
       (B) a marketing quota is not disapproved by producers; or
       (C) price support is available.
       (14) Tobacco product manufacturer.--The term ``tobacco 
     product manufacturer'' has the meaning given the term 
     ``manufacturer of tobacco products'' in section 5702 of the 
     Internal Revenue Code of 1986.
       (15) Transition payment.--The term ``transition payment'' 
     means a payment made to a producer under section 1015 for 
     each of the 1999 through 2001 marketing years.
       (16) Trust fund.--The term ``Trust Fund'' means the Tobacco 
     Community Revitalization Trust Fund established by section 
     1011.
       (17) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

               Subtitle A--Tobacco Production Transition

                CHAPTER 1--TOBACCO TRANSITION CONTRACTS

     SEC. 1011. TOBACCO COMMUNITY REVITALIZATION TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a trust fund to be known as the ``Tobacco 
     Community Revitalization Trust Fund'', consisting of amounts 
     paid into the Trust Fund under subsection (d).
       (b) Administration.--The Trust Fund shall be administered 
     by the Secretary of the Treasury.
       (c) Use.--Funds in the Trust Fund shall be available for 
     making--
       (1) buyout payments;
       (2) transition payments;
       (3) rural economic assistance block grants under section 
     1021;
       (4) payments to carry out sections 106A and 106B of the 
     Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2);
       (5) payments to reimburse the Commodity Credit Corporation 
     for net losses under section 1032(f)(3); and
       (4) payments for tobacco related administrative costs and 
     subsidies described in section 1052.
       (d) Transfer from National Tobacco Settlement Trust Fund.--
     The Secretary of the Treasury shall transfer from the 
     National Tobacco Settlement Trust Fund to the Trust Fund such 
     amounts as the Secretary of Agriculture determines are 
     necessary to carry out this title.

[[Page S5714]]

       (e) Termination.--The Trust Fund shall terminate effective 
     September 30, 2024.

     SEC. 1012. OFFER AND TERMS OF TOBACCO TRANSITION CONTRACTS.

       (a) Offer.--The Secretary shall offer to enter into a 
     tobacco transition contract with each owner and producer.
       (b) Terms.--
       (1) Owners.--In exchange for a payment made under section 
     1014, an owner shall agree to relinquish the quota owned by 
     the owner.
       (2) Producers.--In exchange for a payment made under 
     section 1015, a producer shall agree to relinquish the value 
     of the quota leased by the producer.
       (c) Right To Grow Tobacco.--Each owner or producer that 
     enters into a contract shall have the right to continue the 
     production of tobacco for each of the 1999 and subsequent 
     crops of tobacco.

     SEC. 1013. ELEMENTS OF CONTRACTS.

       (a) Deadlines for Contracting.--
       (1) Commencement.--To the maximum extent practicable, the 
     Secretary shall commence entering into contracts under this 
     chapter not later than 90 days after the date of enactment of 
     this Act.
       (2) Deadline.--The Secretary may not enter into a contract 
     under this chapter after June 30, 1999.
       (b) Duration of Contract.--The term of a contract shall--
       (1) begin on the date that is the beginning of the 1999 
     marketing year for a kind of tobacco; and
       (2) terminate on the date that is the end of the 2001 
     marketing year for the kind of tobacco.
       (c) Time for Payment.--A buyout payment or transition 
     payment shall be made not later than the date that is the 
     beginning of the marketing year for a kind of tobacco for 
     each year of the term of a tobacco transition contract of an 
     owner or producer.

     SEC. 1014. BUYOUT PAYMENTS TO OWNERS.

       (a) In General.--The Secretary shall make buyout payments 
     in 3 equal installments, 1 installment for each of the 1999 
     through 2001 marketing years for each kind of tobacco 
     involved, to an owner that owns quota at the time of entering 
     into a tobacco transition contract.
       (b) Compensation for Lost Value.--The payment shall 
     constitute compensation for the lost value to the owner of 
     the quota.
       (c) Payment Calculation.--Under this section, the total 
     amount of the buyout payment made to an owner shall be 
     determined by multiplying--
       (1) $8.00; by
       (2) the average annual quantity of quota owned by the owner 
     during the 1995 through 1997 crop years.

     SEC. 1015. TRANSITION PAYMENTS TO PRODUCERS.

       (a) In General.--The Secretary shall make transition 
     payments in 3 equal installments, 1 installment for each of 
     the 1999 through 2001 marketing years for each kind of 
     tobacco produced, to a producer that--
       (1) produced the kind of tobacco for each of the 1995 
     through 1997 crops; and
       (2) entered into a tobacco transition contract.
       (b) Transition Payments Limited to Leased Quota.--A 
     producer shall be eligible for transition payments only for 
     the portion of the production of the producer that is subject 
     to quota that is leased during the 3 crop years described in 
     subsection (a)(1).
       (c) Compensation for Lost Revenue.--The payments shall 
     constitute compensation for the lost revenue incurred by a 
     tobacco producer for a kind of tobacco.
       (d) Production History; Production.--
       (1) Production history.--The Secretary shall base a 
     transition payment made to a producer on the average quantity 
     of tobacco subject to a marketing quota that is produced by 
     the producer for each of the 1995 through 1997 crops.
       (2) Production.--The producer shall have the burden of 
     demonstrating to the Secretary the production of tobacco for 
     each of the 1995 through 1997 crops.
       (e) Payment Calculation.--Under this section, the total 
     amount of the transition payment made to a producer shall be 
     determined by multiplying--
       (1) $4.00; by
       (2) the average quantity of the kind of tobacco produced by 
     the producer for each of the 1995 through 1997 crops.

           CHAPTER 2--RURAL ECONOMIC ASSISTANCE BLOCK GRANTS

     SEC. 1021. RURAL ECONOMIC ASSISTANCE BLOCK GRANTS.

       (a) In General.--From funds in the Trust Fund, the 
     Secretary shall use $200,000,000 for each of fiscal years 
     1999 through 2003 to provide block grants to tobacco-growing 
     States to assist areas of such a State that are economically 
     dependent on the production of tobacco.
       (b) Payments by Secretary to Tobacco-Growing States.--
       (1) In general.--The Secretary shall use the amount 
     available for a fiscal year under subsection (a) to make 
     block grant payments to the Governors of tobacco-growing 
     States.
       (2) Amount.--The amount of a block grant paid to a tobacco-
     growing State shall be based on--
       (A) the number of counties in the State in which tobacco 
     production is a significant part of the county's economy; and
       (B) the level of economic dependence of the counties on 
     tobacco production.
       (c) Grants by States To Assist Tobacco-Growing Areas.--
       (1) In general.--A Governor of a tobacco-growing State 
     shall use the amount of the block grant to the State under 
     subsection (b) to make grants to counties or other public or 
     private entities in the State to assist areas that are 
     dependent on the production of tobacco, as determined by the 
     Governor.
       (2) Amount.--The amount of a grant paid to a county or 
     other entity to assist an area shall be based on--
       (A) the ratio of gross tobacco sales receipts in the area 
     to the total farm income in the area; and
       (B) the ratio of all tobacco related receipts in the area 
     to the total income in the area.
       (3) Use of grants.--A county or other entity that receives 
     a grant under this subsection may use the grant in a manner 
     determined appropriate by the county or entity (with the 
     approval of the State) to assist producers and other persons 
     that are economically dependent on the production of tobacco, 
     including use for--
       (A) on-farm diversification, alternatives to the production 
     of tobacco, and risk management;
       (B) off-farm activities such as education, retraining, and 
     development of non-tobacco related jobs; and
       (C) assistance to tobacco warehouse owners or operators.
       (d) Termination of Authority.--The authority provided by 
     this section terminates October 1, 2003.

  Subtitle B--Tobacco Price Support and Production Adjustment Programs

                CHAPTER 1--TOBACCO PRICE SUPPORT PROGRAM

     SEC. 1031. INTERIM REFORM OF TOBACCO PRICE SUPPORT PROGRAM.

       (a) Price Support Rates.--Section 106 of the Agricultural 
     Act of 1949 (7 U.S.C. 1445) is amended to read as follows:

     ``SEC. 106. TOBACCO PRICE SUPPORT RATES.

       ``The price support rate for each kind of tobacco for which 
     quotas have been approved shall be reduced by--
       ``(1) for the 1999 crop, 25 percent from the 1998 support 
     rate for a kind of tobacco;
       ``(2) for the 2000 crop, 10 percent from the 1999 support 
     rate for a kind of tobacco; and
       ``(3) for the 2001 crop, 10 percent from the 2000 support 
     rate for a kind of tobacco.''.
       (b) No Net Cost Tobacco Fund and Account.--
       (1) No net cost tobacco fund.--Section 106A of the 
     Agricultural Act of 1949 (7 U.S.C. 1445-1) is amended to read 
     as follows:

     ``SEC. 106A. NO NET COST TOBACCO FUND.

       ``(a) Definitions.--In this section:
       ``(1) Association.--The term `association' means a 
     producer-owned cooperative marketing association that has 
     entered into a loan agreement with the Corporation to make 
     price support available to producers of a kind of tobacco.
       ``(2) Corporation.--The term `Corporation' means the 
     Commodity Credit Corporation, an agency and instrumentality 
     of the United States within the Department of Agriculture 
     through which the Secretary makes price support available to 
     producers.
       ``(3) Net gains.--The term `net gains' means the amount by 
     which the total proceeds obtained from the sale by an 
     association of a crop of tobacco pledged to the Corporation 
     for a price support loan exceeds the principal amount of the 
     price support loan made by the Corporation to the association 
     on the crop, plus interest and charges.
       ``(4) No net cost tobacco fund.--The term `No Net Cost 
     Tobacco Fund' means the capital account established within 
     each association under this section.
       ``(5) Purchaser.--The term `purchaser' means any person 
     that purchases in the United States, either directly or 
     indirectly for the account of the person or another person, 
     Flue-cured or burley tobacco.
       ``(6) Tobacco.--The term `tobacco' means any kind of 
     tobacco for which--
       ``(A) a marketing quota is in effect;
       ``(B) a marketing quota is not disapproved by producers; or
       ``(C) price support is available.
       ``(7) Trust fund.--The term `Trust Fund' means the National 
     Tobacco Settlement Trust Fund established in the Treasury of 
     the United States consisting of amounts that are appropriated 
     or credited to the Trust Fund from the tobacco settlement 
     approved by Congress.
       ``(b) Price Support Program; Loans.--The Secretary--
       ``(1) may carry out the tobacco price support program 
     through the Corporation; and
       ``(2) shall, except as otherwise provided by this section, 
     continue to make price support available to producers through 
     loans to associations that, under agreements with the 
     Corporation, agree to make loan advances to producers.
       ``(c) Establishment of Fund.--
       ``(1) In general.--Each association shall establish within 
     the association a No Net Cost Tobacco Fund.
       ``(2) Amount.--There shall be transferred from the Trust 
     Fund to each No Net Cost Tobacco Fund such amount as the 
     Secretary determines will be adequate to reimburse the 
     Corporation for any net losses that the Corporation may 
     sustain under its loan agreements with the association, based 
     on--
       ``(A) reasonable estimates of the amounts that the 
     Corporation has lent or will lend to the association for 
     price support for the 1982 and subsequent crops of tobacco, 
     except that for the 1986 and subsequent crops of burley 
     tobacco, the Secretary shall determine the amount of 
     assessments without regard to

[[Page S5715]]

     any net losses that the Corporation may sustain under the 
     loan agreements of the Corporation with the association for 
     the 1983 crop of burley tobacco; and
       ``(B) the proceeds that will be realized from the sales of 
     tobacco that are pledged to the Corporation by the 
     association as security for loans.
       ``(d) Administration.--The Secretary shall--
       ``(1) require that the No Net Cost Tobacco Fund established 
     by each association be kept and maintained separately from 
     all other accounts of the association and be used 
     exclusively, as prescribed by the Secretary, for the purpose 
     of ensuring, insofar as practicable, that the Corporation, 
     under its loan agreements with the association with respect 
     to 1982 and subsequent crops of tobacco, will suffer no net 
     losses (including recovery of the amount of loans extended to 
     cover the overhead costs of the association), after any net 
     gains are applied to net losses of the Corporation under 
     paragraph (3), except that, notwithstanding any other 
     provision of law, the association may, with the approval of 
     the Secretary, use funds in the No Net Cost Tobacco Fund, 
     including interest and other earnings, for--
       ``(A) the purposes of reducing the association's 
     outstanding indebtedness to the Corporation associated with 
     1982 and subsequent crops of tobacco and making loan advances 
     to producers as authorized; and
       ``(B) any other purposes that will be mutually beneficial 
     to producers and purchasers and to the Corporation;
       ``(2) permit an association to invest the funds in the No 
     Net Cost Tobacco Fund in such manner as the Secretary may 
     approve, and require that the interest or other earnings on 
     the investment shall become a part of the No Net Cost Tobacco 
     Fund;
       ``(3) require that loan agreements between the Corporation 
     and the association provide that the Corporation shall retain 
     the net gains from each of the 1982 and subsequent crops of 
     tobacco pledged by the association as security for price 
     support loans, and that the net gains will be used for the 
     purpose of--
       ``(A) offsetting any losses sustained by the Corporation 
     under its loan agreements with the association for any of the 
     1982 and subsequent crops of tobacco; or
       ``(B) reducing the outstanding balance of any price support 
     loan made by the Corporation to the association under the 
     loan agreements for 1982 and subsequent crops of tobacco; and
       ``(4) effective for the 1986 and subsequent crops of 
     tobacco, if the Secretary determines that the amount in the 
     No Net Cost Tobacco Fund or the net gains referred to in 
     paragraph (3) exceeds the total amount necessary for the 
     purposes specified in this section, suspend the transfer of 
     amounts from the Trust Fund to the No Net Cost Tobacco Fund 
     under this section.
       ``(e) Noncompliance.--
       ``(1) In general.--If any association that has entered into 
     a loan agreement with the Corporation with respect to any of 
     the 1982 or subsequent crops of tobacco fails or refuses to 
     comply with this section (including regulations promulgated 
     under this section) or the terms of the agreement, the 
     Secretary may terminate the agreement or provide that no 
     additional loan funds may be made available under the 
     agreement to the association.
       ``(2) Price support.--If the Secretary takes action under 
     paragraph (1), the Secretary shall make price support 
     available to producers of the kind or kinds of tobacco, the 
     price of which had been supported through loans to the 
     association, through such other means as are authorized by 
     this Act or the Commodity Credit Corporation Charter Act (15 
     U.S.C. 714 et seq.).
       ``(f) Termination of Agreement or Association.--If, under 
     subsection (e), a loan agreement with an association is 
     terminated, or if an association having a loan agreement with 
     the Corporation is dissolved, merges with another 
     association, or otherwise ceases to operate, the No Net Cost 
     Tobacco Fund or the net gains referred to in subsection 
     (d)(3) shall be applied or disposed of in such manner as the 
     Secretary may approve or prescribe, except that the net gains 
     shall, to the extent necessary, first be applied or used for 
     the purposes specified in this section.
       ``(g) Regulations.--The Secretary shall issue such 
     regulations as are necessary to carry out this section.''.
       (2) No net cost tobacco account.--Section 106B of the 
     Agricultural Act of 1949 (7 U.S.C. 1445-2) is amended to read 
     as follows:

     ``SEC. 106B. NO NET COST TOBACCO ACCOUNT.

       ``(a) Definitions.--In this section:
       ``(1) Area.--The term `area', when used in connection with 
     an association, means the general geographical area in which 
     farms of the producer-members of the association are located, 
     as determined by the Secretary.
       ``(2) Association.--The term `association' has the meaning 
     given the term in section 106A(a)(1).
       ``(3) Corporation.--The term `Corporation' has the meaning 
     given the term in section 106A(a)(2).
       ``(4) Net gains.--The term `net gains' has the meaning 
     given the term in section 106A(a)(3).
       ``(5) No net cost tobacco account.--The term `No Net Cost 
     Tobacco Account' means an account established by and in the 
     Corporation for an association under this section.
       ``(6) Purchaser.--The term `purchaser' has the meaning 
     given the term in section 106A(a)(5).
       ``(7) Tobacco.--The term `tobacco' means any kind of 
     tobacco for which--
       ``(A) a marketing quota is in effect;
       ``(B) a marketing quota is not disapproved by producers; or
       ``(C) price support is available.
       ``(8) Trust fund.--The term `Trust Fund' has the meaning 
     given the term in section 106A(a)(7).
       ``(b) Price Support Program; Loans.--Notwithstanding 
     section 106A, the Secretary shall, on the request of any 
     association, and may, if the Secretary determines, after 
     consultation with the association, that the accumulation of 
     the No Net Cost Tobacco Fund for the association under 
     section 106A is, and is likely to remain, inadequate to 
     reimburse the Corporation for net losses that the Corporation 
     sustains under its loan agreements with the association--
       ``(1) continue to make price support available to producers 
     through the association in accordance with loan agreements 
     entered into between the Corporation and the association; and
       ``(2) establish and maintain in accordance with this 
     section a No Net Cost Tobacco Account for the association in 
     lieu of the No Net Cost Tobacco Fund established within the 
     association under section 106A.
       ``(c) Establishment of Account.--
       ``(1) In general.--A No Net Cost Tobacco Account 
     established for an association under subsection (b)(2) shall 
     be established within the Corporation.
       ``(2) Amount.--There shall be transferred from the Trust 
     Fund to each No Net Cost Tobacco Account such amount as the 
     Secretary determines will be adequate to reimburse the 
     Corporation for any net losses that the Corporation may 
     sustain under its loan agreements with the association, based 
     on--
       ``(A) reasonable estimates of the amounts that the 
     Corporation has lent or will lend to the association for 
     price support for the 1982 and subsequent crops of tobacco, 
     except that for the 1986 and subsequent crops of burley 
     tobacco, the Secretary shall determine the amount of 
     assessments without regard to any net losses that the 
     Corporation may sustain under the loan agreements of the 
     Corporation with the association for the 1983 crop of burley 
     tobacco; and
       ``(B) the proceeds that will be realized from the sales of 
     a kind of tobacco that are pledged to the Corporation by the 
     association as security for loans.
       ``(3) Administration.--On the establishment of a No Net 
     Cost Tobacco Account for an association, any amount in the No 
     Net Cost Tobacco Fund established within the association 
     under section 106A shall be applied or disposed of in such 
     manner as the Secretary may approve or prescribe, except that 
     the amount shall, to the extent necessary, first be applied 
     or used for the purposes specified in that section.
       ``(d) Use.--Amounts deposited in a No Net Cost Tobacco 
     Account established for an association shall be used by the 
     Secretary for the purpose of ensuring, insofar as 
     practicable, that the Corporation under its loan agreements 
     with the association will suffer, with respect to the crop 
     involved, no net losses (including recovery of the amount of 
     loans extended to cover the overhead costs of the 
     association), after any net gains are applied to net losses 
     of the Corporation under subsection (g).
       ``(e) Excess Amounts.--If the Secretary determines that the 
     amount in the No Net Cost Tobacco Account or the net gains 
     referred to in subsection (g) exceed the total amount 
     necessary to carry out this section, the Secretary shall 
     suspend the transfer of amounts from the Trust Fund to the No 
     Net Cost Tobacco Account under this section.
       ``(f) Termination of Agreement or Association.--In the case 
     of an association for which a No Net Cost Tobacco Account is 
     established under subsection (b)(2), if a loan agreement 
     between the Corporation and the association is terminated, if 
     the association is dissolved or merges with another 
     association that has entered into a loan agreement with the 
     Corporation to make price support available to producers of a 
     kind of tobacco, or if the No Net Cost Tobacco Account 
     terminates by operation of law, amounts in the No Net Cost 
     Tobacco Account and the net gains referred to in subsection 
     (g) shall be applied to or disposed of in such manner as the 
     Secretary may prescribe, except that the net gains shall, to 
     the extent necessary, first be applied to or used for the 
     purposes specified in this section.
       ``(g) Net Gains.--The provisions of section 106A(d)(3) 
     relating to net gains shall apply to any loan agreement 
     between an association and the Corporation entered into on or 
     after the establishment of a No Net Cost Tobacco Account for 
     the association under subsection (b)(2).
       ``(h) Regulations.--The Secretary shall issue such 
     regulations as are necessary to carry out this section.''.
       (3) Conforming amendments.--
       (A) Section 314(a) of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1314(a)) is amended in the first sentence--
       (i) by striking ``(1)''; and
       (ii) by striking ``, or (2)'' and all that follows through 
     ``106B(d)(1) of that Act''.
       (B) Section 320B(c)(1) of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1314h(c)(1)) is amended by inserting after 
     ``1445-2)'' the following: ``(as in effect before the 
     effective date of the amendments made by section 1031(b) of 
     the Tobacco Transition Act)''.

[[Page S5716]]

       (c) Administrative Costs.--Section 1109 of the Agriculture 
     and Food Act of 1981 (Public Law 97-98; 7 U.S.C. 1445 note) 
     is repealed.
       (d) Crops.--
       (1) In general.--Except as provided in paragraph (2), this 
     section and the amendments made by this section shall apply 
     with respect to the 1998 through 2001 marketing years.
       (2) Price support rates.--Subsection (a) and the amendments 
     made by subsection (a) shall apply with respect to the 1999 
     through 2001 crops of the kind of tobacco involved.

     SEC. 1032. TERMINATION OF TOBACCO PRICE SUPPORT PROGRAM.

       (a) Parity Price Support.--Section 101 of the Agricultural 
     Act of 1949 (7 U.S.C. 1441) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``tobacco (except as otherwise provided herein), corn,'' and 
     inserting ``corn'';
       (2) by striking subsections (c), (g), (h), and (i);
       (3) in subsection (d)(3)--
       (A) by striking ``, except tobacco,''; and
       (B) by striking ``and no price support shall be made 
     available for any crop of tobacco for which marketing quotas 
     have been disapproved by producers;''; and
       (4) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (b) Termination of Tobacco Price Support and No Net Cost 
     Provisions.--Sections 106, 106A, and 106B of the Agricultural 
     Act of 1949 (7 U.S.C. 1445, 1445-1, 1445-2) are repealed.
       (c) Definition of Basic Agricultural Commodity.--Section 
     408(c) of the Agricultural Act of 1949 (7 U.S.C. 1428(c)) is 
     amended by striking ``tobacco,''.
       (d) Review of Burley Tobacco Imports.--Section 3 of Public 
     Law 98-59 (7 U.S.C. 625) is repealed.
       (e) Powers of Commodity Credit Corporation.--Section 5 of 
     the Commodity Credit Corporation Charter Act (15 U.S.C. 714c) 
     is amended by inserting ``(other than tobacco)'' after 
     ``agricultural commodities'' each place it appears.
       (f) Transition Provisions.--
       (1) Liability.--The amendments made by this section shall 
     not affect the liability of any person under any provision of 
     law as in effect before the effective date of this section.
       (2) Tobacco inventories.--The Secretary shall issue 
     regulations that require the orderly sale of tobacco 
     inventories held by associations.
       (3) Net losses to the commodity credit corporation.--
       (A) Transfer.--The Secretary of the Treasury shall annually 
     transfer from the Trust Fund to the Commodity Credit 
     Corporation an amount that the Secretary of Agriculture 
     determines will be adequate to reimburse the Corporation for 
     net losses sustained under price support loan agreements with 
     associations.
       (B) Amount.--The Secretary of Agriculture shall base the 
     determination of the amount to be transferred under 
     subparagraph (A) on a reasonable estimate of--
       (i) the outstanding balance due on price support loans; and
       (ii) the proceeds that will be realized from the sales of 
     tobacco that are pledged to the Corporation as security for 
     price support loans.
       (g) Crops.--
       (1) In general.--Except as provided in paragraph (2), this 
     section and the amendments made by this section shall apply 
     with respect to the 2002 and subsequent crops of the kind of 
     tobacco involved.
       (2) Net losses to the commodity credit corporation.--
     Subsection (f)(3) shall apply with respect to the 2002 and 
     subsequent marketing years until--
       (A) all price support loans for each kind of tobacco are 
     repaid to the Commodity Credit Corporation; and
       (B) the Commodity Credit Corporation has been reimbursed 
     for all net losses sustained as a result of price support 
     loans provided through the 2001 crop of the kind of tobacco 
     involved.

           CHAPTER 2--TOBACCO PRODUCTION ADJUSTMENT PROGRAMS

     SEC. 1041. TERMINATION OF TOBACCO PRODUCTION ADJUSTMENT 
                   PROGRAMS.

       (a) Declaration of Policy.--Section 2 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1282) is amended by striking 
     ``tobacco,''.
       (b) Definitions.--Section 301(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1301(b)) is amended--
       (1) in paragraph (3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraph (D) as subparagraph (C);
       (2) in paragraph (6)(A), by striking ``tobacco,'';
       (3) in paragraph (7), by striking the following:
       ``tobacco (flue-cured), July 1--June 30;
       ``tobacco (other than flue-cured), October 1-September 
     30;'';
       (4) in paragraph (10)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B);
       (5) in paragraph (11)(B), by striking ``and tobacco'';
       (6) in paragraph (12), by striking ``tobacco,'';
       (7) in paragraph (14)--
       (A) in subparagraph (A), by striking ``(A)''; and
       (B) by striking subparagraphs (B), (C), and (D);
       (8) by striking paragraph (15);
       (9) in paragraph (16)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (10) by redesignating paragraphs (16) and (17) as 
     paragraphs (15) and (16), respectively.
       (c) Parity Payments.--Section 303 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1303) is amended in the 
     first sentence by striking ``rice, or tobacco,'' and 
     inserting ``or rice,''.
       (d) Marketing Quotas.--Part I of subtitle B of title III of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et 
     seq.) is repealed.
       (e) Administrative Provisions.--Section 361 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
     amended by striking ``tobacco,''.
       (f) Adjustment of Quotas.--Section 371 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``peanuts, or tobacco'' and inserting ``or peanuts''; and
       (2) in the first sentence of subsection (b), by striking 
     ``peanuts or tobacco'' and inserting ``or peanuts''.
       (g) Reports and Records.--Section 373 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
       (1) by striking ``peanuts, or tobacco'' each place it 
     appears in subsections (a) and (b) and inserting ``or 
     peanuts''; and
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``all persons 
     engaged in the business of redrying, prizing, or stemming 
     tobacco for producers,''; and
       (B) in the last sentence, by striking ``$500;'' and all 
     that follows through the period at the end of the sentence 
     and inserting ``$500.''.
       (h) Regulations.--Section 375(a) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1375(a)) is amended by 
     striking ``peanuts, or tobacco'' and inserting ``or 
     peanuts''.
       (i) Eminent Domain.--Section 378 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1378) is amended--
       (1) in the first sentence of subsection (c), by striking 
     ``cotton, tobacco, and peanuts'' and inserting ``cotton and 
     peanuts''; and
       (2) by striking subsections (d), (e), and (f).
       (j) Burley Tobacco Farm Reconstitution.--Section 379 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1379) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``(a)''; and
       (B) in paragraph (6), by striking ``, but this clause (6) 
     shall not be applicable in the case of burley tobacco''; and
       (2) by striking subsections (b) and (c).
       (k) Acreage-Poundage Quotas.--Section 4 of the Act entitled 
     ``An Act to amend the Agricultural Adjustment Act of 1938, as 
     amended, to provide for acreage-poundage marketing quotas for 
     tobacco, to amend the tobacco price support provisions of the 
     Agricultural Act of 1949, as amended, and for other 
     purposes'', approved April 16, 1965 (Public Law 89-12; 7 
     U.S.C. 1314c note), is repealed.
       (l) Burley Tobacco Acreage Allotments.--The Act entitled 
     ``An Act relating to burley tobacco farm acreage allotments 
     under the Agricultural Adjustment Act of 1938, as amended'', 
     approved July 12, 1952 (7 U.S.C. 1315), is repealed.
       (m) Transfer of Allotments.--Section 703 of the Food and 
     Agriculture Act of 1965 (7 U.S.C. 1316) is repealed.
       (n) Advance Recourse Loans.--Section 13(a)(2)(B) of the 
     Food Security Improvements Act of 1986 (7 U.S.C. 1433c-
     1(a)(2)(B)) is amended by striking ``tobacco and''.
       (o) Tobacco Field Measurement.--Section 1112 of the Omnibus 
     Budget Reconciliation Act of 1987 (Public Law 100-203) is 
     amended by striking subsection (c).
       (p) Liability.--The amendments made by this section shall 
     not affect the liability of any person under any provision of 
     law as in effect before the effective date under subsection 
     (q).
       (q) Crops.--This section and the amendments made by this 
     section shall apply with respect to the 1999 and subsequent 
     crops of the kind of tobacco involved.

                          Subtitle C--Funding

     SEC. 1051. TRUST FUND.

       (a) Request.--The Secretary of Agriculture shall request 
     the Secretary of the Treasury to transfer from the Trust Fund 
     amounts authorized under sections 1014, 1015, 1021, 1032, and 
     1052 and the amendments made by section 1031 to the account 
     of the Commodity Credit Corporation.
       (b) Transfer.--On receipt of such a request, the Secretary 
     of the Treasury shall transfer amounts requested under 
     subsection (a).
       (c) Use.--The Secretary of Agriculture shall use the 
     amounts transferred under subsection (b) to carry out the 
     activities described in subsection (a).
       (d) Termination of Authority.--The authority provided under 
     this section shall expire on September 30, 2024.

     SEC. 1052. TOBACCO RELATED ADMINISTRATIVE COSTS AND 
                   SUBSIDIES.

       (a) In General.--For each of fiscal years 1999 through 
     2024, the Secretary shall--
       (1) estimate the costs to the Federal Government relating 
     to tobacco that involve--
       (A) agricultural extension;
       (B) handling, sampling, grading, inspecting, and weighing;
       (C) crop insurance; and
       (D) administering the tobacco price support program; and

[[Page S5717]]

       (2) use funds transferred from the Trust Fund to the 
     Commodity Credit Corporation to cover the costs estimated 
     under paragraph (1).
       (b) Adjustments.--At the end of each of fiscal years 1999 
     through 2024, the Secretary shall--
       (1) use funds transferred from the Trust Fund to the 
     Commodity Credit Corporation in any amount by which the 
     amount of funds transferred under subsection (a)(2) for the 
     fiscal year is less than the actual costs described in 
     subsection (a)(1) for the fiscal year; or
       (2) transfer funds from the Commodity Credit Corporation to 
     the Trust Fund in any amount by which the amount of funds 
     transferred for the fiscal year under subsection (a)(2) is 
     more than the actual costs described in subsection (a)(1) for 
     the fiscal year.

     SEC. 1053. COMMODITY CREDIT CORPORATION.

       The Secretary may use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     this title and the amendments made by this title.

                       Subtitle D--Miscellaneous

     SEC. 1061. LIABILITY FOR OBLIGATIONS OF TOBACCO PRODUCT 
                   MANUFACTURERS.

       A person that owns or produces tobacco, or owns or operates 
     a tobacco warehouse, shall not be liable for--
       (1) any action or legal penalty or obligation of a 
     manufacturer of a tobacco product under this Act; or
       (2) any financial penalty or payment owed by a manufacturer 
     of a tobacco product under this Act.

     SEC. 1062. FDA REGULATION OF TOBACCO PRODUCTION AND FARMS.

       Notwithstanding any other provision of law, an officer, 
     employee, or agent of the Food and Drug Administration shall 
     not--
       (1) regulate the production of a crop of tobacco by a 
     person; or
       (2) enter the farm of a person that owns or produces 
     tobacco without the consent of the person.
                                  ____


                           Amendment No. 2499

       In lieu of the matter proposed to be inserted for title X, 
     insert the following:

                  TITLE X--PAYMENTS TO TOBACCO FARMERS

     SEC. 1001. BUDGETARY TREATMENT.

       Subtitle A of title XV constitutes budget authority in 
     advance of appropriations Acts and represents the obligation 
     of the Federal Government to provide payments to States and 
     eligible persons in accordance with subtitle A of title XV.

     SEC. 1002. BUYOUT PAYMENTS TO OWNERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1514, the Secretary of Agriculture shall make buyout payments 
     for each of the 1999 through 2001 marketing years for each 
     kind of tobacco involved to an owner that owns quota at the 
     time of entering into a tobacco transition contract.
       (b) Allocation.--Of the total amount of buyout payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Payment Calculation.--Under this section, the total 
     amount of the buyout payment made to an owner shall be 
     determined by multiplying--
       (1) $8.00; by
       (2) the average annual quantity of quota owned by the owner 
     during the 1995 through 1997 crop years.

     SEC. 1003. TRANSITION PAYMENTS TO PRODUCERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1515, the Secretary of Agriculture shall make transition 
     payments for each of the 1999 through 2001 marketing years 
     for each kind of tobacco produced, to a producer that--
       (1) produced the kind of tobacco for each of the 1995 
     through 1997 crops; and
       (2) entered into a tobacco transition contract.
       (b) Allocation.--Of the total amount of transition payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Transition Payments Limited to Leased Quota.--A 
     producer shall be eligible for transition payments only for 
     the portion of the production of the producer that is subject 
     to quota that is leased (as defined in section 1503(5) of 
     this Act) during the 3 crop years described in subsection 
     (a)(1).
       (d) Production History; Production.--
       (1) Production history.--The Secretary shall base a 
     transition payment made to a producer on the average quantity 
     of tobacco subject to a marketing quota that is produced by 
     the producer for each of the 1995 through 1997 crops.
       (2) Production.--The producer shall have the burden of 
     demonstrating to the Secretary the production of tobacco for 
     each of the 1995 through 1997 crops.
       (e) Payment Calculation.--Under this section, the total 
     amount of the transition payment made to a producer shall be 
     determined by multiplying--
       (1) $4.00; by
       (2) the average quantity of the kind of tobacco produced by 
     the producer for each of the 1995 through 1997 crops.

     SEC. 1004. EFFECTIVE DATE.

       This title takes effect 2 days after the date of enactment 
     of this Act.

                           Amendment No. 2500

       In lieu of the matter proposed to be inserted for title X, 
     insert the following:

                  TITLE X--PAYMENTS TO TOBACCO FARMERS

     SEC. 1001. BUDGETARY TREATMENT.

       Subtitle A of title XV constitutes budget authority in 
     advance of appropriations Acts and represents the obligation 
     of the Federal Government to provide payments to States and 
     eligible persons in accordance with subtitle A of title XV.

     SEC. 1002. BUYOUT PAYMENTS TO OWNERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1514, the Secretary of Agriculture shall make buyout payments 
     for each of the 1999 through 2001 marketing years for each 
     kind of tobacco involved to an owner that owns quota at the 
     time of entering into a tobacco transition contract.
       (b) Allocation.--Of the total amount of buyout payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Compensation for Lost Value.--The payment shall 
     constitute compensation for the lost value to the owner of 
     the quota.
       (d) Payment Calculation.--Under this section, the total 
     amount of the buyout payment made to an owner shall be 
     determined by multiplying--
       (1) $8.00; by
       (2) the average annual quantity of quota owned by the owner 
     during the 1995 through 1997 crop years.

     SEC. 1003. TRANSITION PAYMENTS TO PRODUCERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1515, the Secretary of Agriculture shall make transition 
     payments for each of the 1999 through 2001 marketing years 
     for each kind of tobacco produced, to a producer that--
       (1) produced the kind of tobacco for each of the 1995 
     through 1997 crops; and
       (2) entered into a tobacco transition contract.
       (b) Allocation.--Of the total amount of transition payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Transition Payments Limited to Leased Quota.--A 
     producer shall be eligible for transition payments only for 
     the portion of the production of the producer that is subject 
     to quota that is leased (as defined in section 1503(5) of 
     this Act) during the 3 crop years described in subsection 
     (a)(1).
       (d) Compensation for Lost Revenue.--The payments shall 
     constitute compensation for the lost revenue incurred by a 
     tobacco producer for a kind of tobacco.
       (e) Production History; Production.--
       (1) Production history.--The Secretary shall base a 
     transition payment made to a producer on the average quantity 
     of tobacco subject to a marketing quota that is produced by 
     the producer for each of the 1995 through 1997 crops.
       (2) Production.--The producer shall have the burden of 
     demonstrating to the Secretary the production of tobacco for 
     each of the 1995 through 1997 crops.
       (f) Payment Calculation.--Under this section, the total 
     amount of the transition payment made to a producer shall be 
     determined by multiplying--
       (1) $4.00; by
       (2) the average quantity of the kind of tobacco produced by 
     the producer for each of the 1995 through 1997 crops.

                           Amendment No. 2501

       Strike title X in the Committee amendment and insert the 
     following:

                  TITLE X--PAYMENTS TO TOBACCO FARMERS

     SEC. 1001. BUDGETARY TREATMENT.

       Subtitle A of title XV constitutes budget authority in 
     advance of appropriations Acts and represents the obligation 
     of the Federal Government to provide payments to States and 
     eligible persons in accordance with subtitle A of title XV.

     SEC. 1002. BUYOUT PAYMENTS TO OWNERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1514, the Secretary of Agriculture shall make buyout payments 
     for each of the 1999 through 2001 marketing years for each 
     kind of tobacco involved to an owner that owns quota at the 
     time of entering into a tobacco transition contract.
       (b) Allocation.--Of the total amount of buyout payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Compensation for Lost Value.--The payment shall 
     constitute compensation for the lost value to the owner of 
     the quota.

[[Page S5718]]

       (d) Payment Calculation.--Under this section, the total 
     amount of the buyout payment made to an owner shall be 
     determined by multiplying--
       (1) $8.00; by
       (2) the average annual quantity of quota owned by the owner 
     during the 1995 through 1997 crop years.

     SEC. 1003. TRANSITION PAYMENTS TO PRODUCERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1515, the Secretary of Agriculture shall make transition 
     payments for each of the 1999 through 2001 marketing years 
     for each kind of tobacco produced, to a producer that--
       (1) produced the kind of tobacco for each of the 1995 
     through 1997 crops; and
       (2) entered into a tobacco transition contract.
       (b) Allocation.--Of the total amount of transition payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Transition Payments Limited to Leased Quota.--A 
     producer shall be eligible for transition payments only for 
     the portion of the production of the producer that is subject 
     to quota that is leased (as defined in section 1503(5) of 
     this Act) during the 3 crop years described in subsection 
     (a)(1).
       (d) Compensation for Lost Revenue.--The payments shall 
     constitute compensation for the lost revenue incurred by a 
     tobacco producer for a kind of tobacco.
       (e) Production History; Production.--
       (1) Production history.--The Secretary shall base a 
     transition payment made to a producer on the average quantity 
     of tobacco subject to a marketing quota that is produced by 
     the producer for each of the 1995 through 1997 crops.
       (2) Production.--The producer shall have the burden of 
     demonstrating to the Secretary the production of tobacco for 
     each of the 1995 through 1997 crops.
       (f) Payment Calculation.--Under this section, the total 
     amount of the transition payment made to a producer shall be 
     determined by multiplying--
       (1) $4.00; by
       (2) the average quantity of the kind of tobacco produced by 
     the producer for each of the 1995 through 1997 crops.

     SEC. 1004. EFFECTIVE DATE.

       This title takes effect on the day after the date of 
     enactment of this Act.

                           Amendment No. 2502

       In lieu of the matter proposed to be inserted for title X, 
     insert the following:

                  TITLE X--PAYMENTS TO TOBACCO FARMERS

     SEC. 1001. BUDGETARY TREATMENT.

       Subtitle A of title XV constitutes budget authority in 
     advance of appropriations Acts and represents the obligation 
     of the Federal Government to provide payments to States and 
     eligible persons in accordance with subtitle A of title XV.

     SEC. 1002. BUYOUT PAYMENTS TO OWNERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1514, the Secretary of Agriculture shall make buyout payments 
     for each of the 1999 through 2001 marketing years for each 
     kind of tobacco involved to an owner that owns quota at the 
     time of entering into a tobacco transition contract.
       (b) Allocation.--Of the total amount of buyout payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Compensation for Lost Value.--The payment shall 
     constitute compensation for the lost value to the owner of 
     the quota.
       (d) Payment Calculation.--Under this section, the total 
     amount of the buyout payment made to an owner shall be 
     determined by multiplying--
       (1) $8.00; by
       (2) the average annual quantity of quota owned by the owner 
     during the 1995 through 1997 crop years.

     SEC. 1003. TRANSITION PAYMENTS TO PRODUCERS.

       (a) In General.--Notwithstanding, and in lieu of, section 
     1515, the Secretary of Agriculture shall make transition 
     payments for each of the 1999 through 2001 marketing years 
     for each kind of tobacco produced, to a producer that--
       (1) produced the kind of tobacco for each of the 1995 
     through 1997 crops; and
       (2) entered into a tobacco transition contract.
       (b) Allocation.--Of the total amount of transition payments 
     made under subsection (a)--
       (1) 46 percent shall be made for the 1999 marketing year;
       (2) 27 percent shall be made for the 2000 marketing year; 
     and
       (3) 27 percent shall be made for the 2001 marketing year.
       (c) Transition Payments Limited to Leased Quota.--A 
     producer shall be eligible for transition payments only for 
     the portion of the production of the producer that is subject 
     to quota that is leased (as defined in section 1503(5) of 
     this Act) during the 3 crop years described in subsection 
     (a)(1).
       (d) Compensation for Lost Revenue.--The payments shall 
     constitute compensation for the lost revenue incurred by a 
     tobacco producer for a kind of tobacco.
       (e) Production History; Production.--
       (1) Production history.--The Secretary shall base a 
     transition payment made to a producer on the average quantity 
     of tobacco subject to a marketing quota that is produced by 
     the producer for each of the 1995 through 1997 crops.
       (2) Production.--The producer shall have the burden of 
     demonstrating to the Secretary the production of tobacco for 
     each of the 1995 through 1997 crops.
       (f) Payment Calculation.--Under this section, the total 
     amount of the transition payment made to a producer shall be 
     determined by multiplying--
       (1) $4.00; by
       (2) the average quantity of the kind of tobacco produced by 
     the producer for each of the 1995 through 1997 crops.
                                 ______
                                 

                  MURKOWSKI AMENDMENTS NOS. 2503-2504

  (Ordered to lie on the table.)
  Mr. MURKOWSKI submitted two amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2503

       At the end of title VI, add the following:

     SEC. ____. COLLECTION OF STATE TOBACCO EXCISE AND SALES TAXES 
                   FROM INDIAN TRIBES.

       (a) In General.--An Indian tribe, tribal corporation, or 
     individual member of an Indian tribe engaged in tobacco 
     retailing shall collect all lawfully-imposed, non-
     discriminatory tobacco excise and sales taxes imposed by a 
     State, within the exterior boarders of which the purchase 
     occurs, on nonmembers of the Indian tribe as a consequence of 
     the purchase of tobacco products by the nonmember from the 
     Indian tribe, tribal corporation, or individual member of an 
     Indian tribe.
       (b) Enforcement.--
       (1) In general.--To that extent that all such taxes are not 
     collected and remitted to the appropriate State by the Indian 
     tribe, tribal corporation, or individual member of an Indian 
     tribe (or, in the manner provided by State law, by any other 
     person), such tribe, corporation, or individual shall remit 
     such taxes to the Treasury of the United States, which shall, 
     in turn, remit such taxes to the State in which the purchase 
     by the nonmember took place.
       (2) Authority of secretary of the treasury.--The Secretary 
     of the Treasury of the United States shall--
       (A) have the authority to enforce the requirements of 
     subsection (a) and to administer the collection of tobacco 
     excise and sales taxes under subsection (b)(1);
       (B) issue regulations to implement subsection (b)(1) within 
     180 days of enactment; and
       (C) specify in such regulations such return information to 
     accompany remittance of the taxes due under subsection (b)(1) 
     and the time period (not to exceed 180 days) for return of 
     such taxes to the appropriate State.
       (c) Preservation of State Law and Tribal-State 
     Agreements.--Subsections (a) and (b) shall not apply to 
     Indian tribes or tribal corporations if--
       (1) the law of a State provides that Indian tribes or 
     tribal corporations are not obligated to collect and remit 
     such State's tobacco excise and sales taxes to the State 
     provided that the tribe or tribal corporation imposes and 
     collects tobacco excise and sales taxes on the purchase of 
     tobacco products by nonmembers that are equal to or greater 
     than the tobacco excise and sales taxes imposed by the State 
     on the sale of tobacco products within the State's exterior 
     borders; or
       (2) the Indian tribe or tribal corporation has entered into 
     an agreement with a State, within which the purchase of 
     tobacco products by an nonmember occurs, on the collection 
     and allocation of the State's tobacco excise and sales taxes 
     on the purchase of tobacco products by nonmembers from the 
     Indian tribe or tribal corporation, and such agreement 
     provides that the Indian tribe or tribal corporation imposes 
     and collects tobacco excise and sales taxes on the purchase 
     of tobacco products by nonmembers that are equal to or 
     greater than the tobacco excise and sales taxes imposed by 
     the State on the sale of tobacco products within the State's 
     exterior borders.
       (d) Effective Date.--This section shall apply to sales 
     occurring after the date of enactment of this Act.
                                  ____


                           Amendment No. 2504

       At the end of title VI, add the following:

     SEC. ____. UNIFORMITY OF TOBACCO PRODUCT SALES PRICES.

       (a) In General.--Notwithstanding any other provision of 
     law, if with respect to the sale by an Indian tribe, tribal 
     corporation, or individual member of an Indian tribe of any 
     tobacco product on Indian lands, the price at which such 
     product is sold to a non-Indian exceeds such price to an 
     Indian, there is imposed a fee equal to such excess on such 
     sale to an Indian.
       (b) Determination of Excess.--For purposes of subsection 
     (a), the excess shall be determined without regard to any 
     State tax on the sale of tobacco products if such tax is 
     collected and remitted to the State by such

[[Page S5719]]

     tribe, tribal corporation, or individual member.
       (c) Enforcement Through Remittance of Fee.--The fee imposed 
     under this section shall be remitted at least quarterly by 
     such tribe, tribal corporation, or individual member to the 
     Treasury of the United States, unless such tribe or tribal 
     corporation has provided the Secretary with proper 
     certification that such fee shall not be used to provide a 
     refund or rebate to Indians who purchase tobacco products on 
     such Indian lands.
       (d) Effective Date.--This section shall apply to sales 
     occurring after the date of enactment of this Act.
                                 ______
                                 

                      LIEBERMAN AMENDMENT NO. 2505

  (Ordered to lie on the table.)
  Mr. LIEBERMAN submitted an amendment intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

       In title XIV, Sec. 1412(c)(2), insert on p. 435, line 23, 
     after ``this title:'' ``Such mechanism shall, to the greatest 
     extent possible, ensure that in the event the liability cap 
     is met in any calendar year, compensatory damage awards 
     registered with the Secretary shall be given priority for 
     payment over registered punitive damage awards.''
                                 ______
                                 

                   KENNEDY AMENDMENTS NOS. 2506-2507

  (Ordered to lie on the table.)
  Mr. KENNEDY submitted two amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2506

       Strike section 405, and insert the following:

     SEC. 405. TAX TREATMENT OF PAYMENTS.

       (a) In General.--Payments made under section 402 shall not 
     be considered to be ordinary and necessary business expenses 
     for purposes of chapter 1 of the Internal Revenue Code of 
     1986 and shall not be deductible under the Internal Revenue 
     Code of 1986.
       (b) Full Payment by Manufacturers.--
       (1) Determination.--For each calendar year, the Secretary 
     of the Treasury shall determine whether and by what amount--
       (A) the amount paid to the Internal Revenue Service for 
     such calendar year by manufacturers of tobacco products; 
     exceeds
       (B) the amount that would have been paid by such 
     manufactures for such calendar year in absence of the 
     application of subsection (a).
       (2) Transfer.--With respect to a calendar year, the 
     Secretary of the Treasury shall transfer to the National 
     Tobacco Trust Fund an amount equal to the excess determined 
     for such calendar year under paragraph (1).
                                  ____


                           Amendment No. 2507

       Strike section 405, and insert the following:

     SEC. 405. TAX TREATMENT OF PAYMENTS.

       (a) In General.--Payments made under section 402 shall not 
     be considered to be ordinary and necessary business expenses 
     for purposes of chapter 1 of the Internal Revenue Code of 
     1986 and shall not be deductible under the Internal Revenue 
     Code of 1986.
       (b) Full Payment by Manufacturers.--
       (1) Determination.--For each calendar year, the Secretary 
     of the Treasury shall determine whether and by what amount--
       (A) the amount paid to the Internal Revenue Service for 
     such calendar year by manufacturers of tobacco products; 
     exceeds
       (B) the amount that would have been paid by such 
     manufactures for such calendar year in absence of the 
     application of subsection (a).
       (2) Transfer.--With respect to a calendar year, the 
     Secretary of the Treasury shall transfer to the National 
     Tobacco Trust Fund an amount equal to the excess determined 
     for such calendar year under paragraph (1).
                                 ______
                                 

                    CRAIG AMENDMENTS NOS. 2508-2509

  (Ordered to lie on the table.)
  Mr. CRAIG submitted two amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2508

       Beginning on page 192, strike line 8 and all that follows 
     through line 2 on page 193, and insert the following:
       (1) Amounts.--
       (A) In general.--There is established within the Trust Fund 
     a separate account, to be known as the State Litigation 
     Settlement Account. Of the net revenues credited to the Trust 
     Fund under section 401(b)(1) for each fiscal year, at least 
     62 percent of the amounts designated for allocation under the 
     settlement payments shall be allocated to this account. If, 
     after 10 years, the estimated 25-year total amount projected 
     to received in this account will be different than amount 
     than $340,200,000,000, then beginning with the eleventh year 
     the 62 percent share will be adjusted as necessary to achieve 
     that 25-year total amount. Notwithstanding section 452(b) or 
     any other provision of this Act, amounts received by a State 
     under this subsection may be used as the State determines 
     appropriate.
       (B) State loss of revenue adjustments.--
       (i) In general.--Amounts provided to a State under this 
     subsection for a fiscal year shall take into account the 
     decrease in the amount of revenue that the State received 
     during the previous fiscal year as a result of a decrease in 
     the demand for tobacco products in the State based on the 
     enactment of this Act.
       (ii) Determinations.--The Joint Committee on Taxation 
     established under section 8001 of the Internal Revenue Code 
     of 1986 shall make determinations under clause (i) relating 
     to the amount by which the revenues of a State have decreased 
     during a fiscal year as a result of the enactment of this 
     Act.
                                  ____


                           Amendment No. 2509

       Beginning on page 179, strike lines 21 and all that follows 
     through line 4 on page 180, and insert the following:
       (c) Net Revenues and Adjustments for Loss of Revenues by 
     States.--
       (1) Net revenues.--For purposes of subsection (b), the term 
     ``net revenues'' means the amount estimated by the 
     Congressional Budget Office based on the excess of--
       (A) the amounts received in the Treasury under subsection 
     (b), over
       (B) an amount equal to--
       (i) the decrease in the taxes imposed by chapter 1 and 
     chapter 52 of the Internal Revenue Code of 1986, and other 
     offsets, resulting from the amounts received under subsection 
     (b); and
       (ii) the increase in direct and indirect Federal spending 
     as a result of the enactment of this Act (including increases 
     in cost of living adjustments resulting from an increase in 
     the Consumer Price Index as a result of required tobacco 
     product price increases).
       (2) State loss of revenue adjustments.--
       (A) In general.--Amounts provided to a State under section 
     451 for a fiscal year shall be increased by an amount equal 
     to the decrease in the amount of revenue that the State 
     received during the previous fiscal year as a result of a 
     decrease in the demand for tobacco products in the State 
     based on the enactment of this Act.
       (B) Determinations.--The Joint Committee on Taxation 
     established under section 8001 of the Internal Revenue Code 
     of 1986 shall make determinations under subparagraph (A) 
     relating to the amount by which the revenues of a State have 
     decreased during a fiscal year as a result of the enactment 
     of this Act.
       (C) Funding.--Amounts in the Trust Fund shall be made 
     available to carry out this paragraph.
                                 ______
                                 

                   DOMENICI AMENDMENTS NOS. 2510-2511

  (Ordered to lie on the table.)
  Mr. DOMENICI submitted two amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2510

       At the appropriate place, insert the following:

     SECTION 1. PERMANENT EXTENSION OF RESEARCH CREDIT.

       (a) In General.--Section 41 of the Internal Revenue Code of 
     1986 (relating to credit for increasing research activities) 
     is amended by striking subsection (h).
       (b) Conforming Amendment.--Section 45C(b)(1) of the 
     Internal Revenue Code of 1986 is amended by striking 
     subparagraph (D).
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after June 30, 1998.

     SEC. 2. MODIFICATIONS OF CREDIT FOR QUALIFIED RESEARCH 
                   EXPENSES.

       (a) Fixed-Base Percentage.--Subparagraph (A) of section 
     41(c)(3) of the Internal Revenue Code of 1986 (defining 
     fixed-base percentage) is amended to read as follows:
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the fixed-base percentage is the percentage which 
     the aggregate qualified research expenses of the taxpayer for 
     taxable years beginning in the base period is of the 
     aggregate gross receipts of the taxpayer for such taxable 
     years. For purposes of the preceding sentence, the base 
     period for any taxable year is any period of 4 consecutive 
     taxable years elected by the taxpayer from the 10 immediately 
     preceding taxable years.''
       (b) Start-Up Companies.--
       (1) Fixed-base percentage.--
       (A) In general.--Clause (i) of section 41(c)(3)(B) of such 
     Code (relating to start-up companies) is amended to read as 
     follows:
       ``(i) Taxpayers to which subparagraph applies.--The fixed-
     base percentage shall be determined under this subparagraph 
     if the taxpayer did not have both gross receipts and 
     qualified research expenses in each of the 10 taxable years 
     described in subparagraph (A).''
       (B) Maximum percentage not to apply.--Section 41(c)(3)(C) 
     of such Code (relating to maximum fixed-base percentage) is 
     amended by adding at the end the following: ``This 
     subparagraph shall not apply to a taxpayer to which 
     subparagraph (B) applies.''
       (C) Conforming amendments.--Section 41(c)(3)(B)(ii) of such 
     Code is amended--
       (i) by striking ``1st 5 taxable years beginning after 
     December 31, 1993'' and inserting ``1st 5 taxable years in 
     the 10-year period described in subparagraph (A)'', and
       (ii) by inserting ``and'' at the end of subclause (V), by 
     striking ``, and'' at the end of subclause (VI), and by 
     striking subclause (VII).
       (2) Repeal of minimum base amount for start-up companies.--
     Section 41(c)(2) of the

[[Page S5720]]

     Internal Revenue Code of 1986 (relating to minimum base 
     amount) is amended by adding at the end the following: ``This 
     paragraph shall not apply to a taxpayer to which paragraph 
     (3)(B) applies.''
       (c) Repeal of Limitation on Contract Research Expenses.--
     Section 41(b)(3) of the Internal Revenue Code of 1986 
     (defining contract research expenses) is amended--
       (1) by striking ``65 percent of'' in subparagraph (A), and
       (2) by striking subparagraph (C).
       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 1998.
       (2) Transition rule.--In the case of a taxpayer's 1st 5 
     taxable years beginning after December 31, 1998, the taxpayer 
     may elect to have section 41 of the Internal Revenue Code of 
     1986 applied without regard to the amendments made by 
     subsections (a) and (b).

     SEC. 3. MODIFICATIONS OF BASIC RESEARCH CREDIT.

       (a) Expansion of Credit to Research Done With National 
     Laboratories and Federal Research Centers.--Section 41(e)(6) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) National laboratories and research centers.--Any 
     organization which is--
       ``(i) a national laboratory specified by the Secretary of 
     Energy as being under contract with the Department of Energy, 
     or
       ``(ii) a federally funded research and development center 
     (within the meaning of section 2367 of title 10, United 
     States Code).''
       (b) Basic Research.--Section 41(e)(7) of the Internal 
     Revenue Code of 1986 (relating to definitions and special 
     rules) is amended by adding at the end the following new 
     subparagraph:
       ``(F) Specific commercial objective.--For purposes of 
     subparagraph (A), research shall not be treated as having a 
     specific commercial objective if--
       ``(i) all results of such research are to be published in 
     such a manner as to be available to the general public prior 
     to their use for a commercial purpose, or
       ``(ii) such research is done for a consortium of domestic 
     corporations which represent substantially all of the 
     domestic corporations conducting business within the sector 
     to which the research relates.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.
                                  ____


                           Amendment No. 2511

       On page ____, after line ____, insert the following:

     SEC. ____. DEDICATION OF FUNDS TO MEDICARE AFTER FISCAL YEAR 
                   2008.

       (a) Expiration of Authority.--Notwithstanding any other 
     provision of this Act, the following shall expire on 
     September 30, 2008:
       (1) All authority provided in this Act to obligate and 
     expend funds from the National Tobacco Trust Fund.
       (2) All obligations of the Federal Government to make any 
     payment to any person or government under this Act.
       (3) All provisions in this Act which result, directly or 
     indirectly, in an increase in direct spending by the Federal 
     Government.
       (b) Transfer of Funds.--After September 30, 2008, the 
     following amounts shall be transferred to the Federal 
     Hospital Insurance Trust Fund (part A):
       (1) The net revenues resulting from--
       (A) amounts paid under section 402;
       (B) amounts equal to the fines or penalties paid under 
     section 402, 403, or 405, including interest thereon; and
       (C) amounts equal to penalties paid under section 202, 
     including interest thereon.
       (2) The unobligated balances in the National Tobacco Trust 
     Fund.
                                 ______
                                 

                     ROTH AMENDMENTS NOS. 2512-2515

  (Ordered to lie on the table.)
  Mr. ROTH submitted four amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2512

       Beginning on page 161, strike line 16 and all that follows 
     through page 162, line 2.

       On page 162, after line 23, add the following:
       (b) Elimination of Limitation On Medicaid Coverage of 
     Smoking Cessation Agents.--Section 1927(d)(2) of the Social 
     Security Act (42 U.S.C. 1396r-8(d)(2)) is amended by striking 
     subparagraph (E) and redesignating subparagraphs (F) through 
     (J) as subparagraphs (E) through (I), respectively.

       On page 192, beginning with line 15, strike ``Such'' and 
     all that follows through the period on line 19.

       On page 193, strike lines 7 through 25 and insert the 
     following:
       (3) Distribution formula.--
       (A) In general.--Except as provided in paragraph (5), 
     amounts in the State Litigation Settlement Account shall be 
     available, without further appropriations, to make payments 
     to each State in the amount determined under subparagraph 
     (B). The Secretary shall transfer amounts available under 
     this subsection to each State as amounts are credited to the 
     State Litigation Settlement Account without undue delay.
       (B) Amount.--Except as provided in paragraph (4), the 
     amount of any payment to a State under subparagraph (A) for 
     any calendar year shall be equal to the percentage of the 
     amounts transferred to the State Litigation Settlement 
     Account for such calendar year determined in accordance with 
     the following table:

``States:                                                   Percentage:
  Alabama.....................................................1.231000 
  Alaska......................................................0.400000 
  American Samoa..............................................0.007850 
  Arizona.....................................................1.701000 
  Arkansas....................................................0.949000 
  California..................................................8.653000 
  Colorado....................................................0.985000 
  Connecticut.................................................1.541000 
  Delaware....................................................0.400000 
  District of Columbia........................................0.472000 
  Florida.....................................................4.745000 
  Georgia.....................................................2.722000 
  Guam........................................................0.005704 
  Hawaii......................................................0.800000 
  Idaho.......................................................0.400000 
  Illinois....................................................3.911000 
  Indiana.....................................................1.483000 
  Iowa........................................................0.928000 
  Kansas......................................................0.800000 
  Kentucky....................................................1.656000 
  Louisiana...................................................1.715000 
  Maine.......................................................0.800000 
  Maryland....................................................1.418000 
  Massachusetts...............................................3.783000 
  Michigan....................................................3.569000 
  Minnesota...................................................1.240000 
  Mississippi.................................................1.693000 
  Missouri....................................................1.693000 
  Montana.....................................................0.400000 
  Nebraska....................................................0.400000 
  Nevada......................................................0.400000 
  New Hampshire...............................................0.400000 
  New Jersey..................................................3.737000 
  New Mexico..................................................0.800000 
  New York...................................................12.751000 
  North Carolina..............................................1.967000 
  North Dakota................................................0.400000 
  Northern Mariana Islands....................................0.001270 
  Ohio........................................................4.185000 
  Oklahoma....................................................0.800000 
  Oregon......................................................1.346000 
  Pennsylvania................................................4.400000 
  Puerto Rico.................................................0.416015 
  Rhode Island................................................0.800000 
  South Carolina..............................................1.085000 
  South Dakota................................................0.400000 
  Tennessee...................................................2.837000 
  Texas.......................................................5.901000 
  United States Virgin Islands................................0.004413 
  Utah........................................................0.400000 
  Vermont.....................................................0.400000 
  Virginia....................................................1.342000 
  Washington..................................................1.718000 
  West Virginia...............................................0.778000 
  Wisconsin...................................................1.832000 
  Wyoming.....................................................0.400000.
       (C) Application of medicaid cost recovery rules.--Subject 
     to section 1903(d)(7) of the Social Security Act, a State may 
     use amounts received under this paragraph as the State 
     determines appropriate.
       (4) Minimum payments to settlement states.--
       (A) In general.--In the case of the State of Florida, 
     Minnesota, Mississippi, or Texas, the payment under paragraph 
     (3)(A) for any calendar year shall be equal to the greater 
     of--
       (i) the amount of the payment determined under paragraph 
     (3)(B), or
       (ii) the aggregate payments which, but for paragraph (5), 
     would have been received by such State for such calendar year 
     under the settlement, judgment, or other agreement with 
     respect to which payments were waived under paragraph (5).
       (B) Reallocation of amounts for other states.--If the 
     amount determined under subparagraph (A)(ii) exceeds the 
     amount determined under subparagraph (A)(i) for 1 or more 
     States for any calendar year, the amount of the payments 
     under paragraph (3)(A) to all States to which subparagraph 
     (A) does not apply shall be ratably reduced by the aggregate 
     amount of such excess for all 4 States.
       (5) Waiver of payments from state litigation.--
       (A) In general.--No payment shall be made from the State 
     Litigation Settlement Account to any State unless such State 
     agrees to waive its rights to receive funds after the date of 
     the enactment of this Act under any settlement, entry of a 
     court judgment, or other agreement, that resolves litigation 
     by the State against a tobacco manufacturer or a group of 
     tobacco manufacturers for expenditures of the State for 
     tobacco-related diseases or conditions.
       (B) Redistribution of waived payments.--If a waiver is not 
     in effect under this paragraph with respect to a State for a 
     calendar year, any payments out of the State Litigation 
     Settlement Account which would otherwise have been made to 
     such State shall be reallocated to all other States receiving 
     such payments for such calendar year in the same proportion 
     as the payments received by any State bear to all such 
     payments.
       (C) Waiver.--Any waiver under subparagraph (A) shall be 
     made before the date which is 1 year after the date of the 
     enactment of this section and, once made, is irrevocable.
       (6) Budgetary treatment.--This subsection constitutes 
     budget authority in advance of appropriations Acts and 
     represents the obligation of the Federal Government to 
     provide payments to States in accordance with the provisions 
     described in paragraph (3).
       (7) Definition of State.--In this subsection, the term 
     ``State'' means each of the 50 States, the District of 
     Columbia, Puerto Rico, Guam, American Samoa, the United 
     States Virgin Islands, and the Northern Mariana Islands.

[[Page S5721]]

       (8) Application of medicaid cost recovery rules.--Section 
     1903(d) of the Social Security Act (42 U.S.C. 1396b(d)) is 
     amended by adding at the end the following:
       ``(7)(A) Except as provided under subparagraph (B), the 
     provisions of this subsection relating to the treatment of 
     overpayments, and any other cost recovery rules applicable to 
     payments made under this title, shall apply to the portion of 
     any of the following amounts that is used for expenditures 
     under or related to the State plan (or a waiver of such plan) 
     under this title:
       ``(i) Payments from the State Litigation Settlement Account 
     established under section 9512(d) of the Internal Revenue 
     Code of 1986.
       ``(ii) Payments received as a result of litigation by the 
     State against a tobacco manufacturer or a group of tobacco 
     manufacturers based on expenditures of the State for tobacco-
     related diseases or conditions that is resolved through a 
     settlement, entry of a court judgment, or otherwise.
       ``(B) Upon receipt of certification by the chief executive 
     officer of a State that the State shall not use payments 
     described in clauses (i) or (ii) of subparagraph (A) for 
     expenditures under or related to the State plan (or a waiver 
     of such plan) under this title, the Secretary shall waive the 
     application of the provisions of this subsection relating to 
     the treatment of overpayments, and any other cost recovery 
     rules applicable to payments made under this title, to such 
     payments.''

       Beginning on page 200, strike line 1 and all that follows 
     through page 206, line 19.
                                  ____


                           Amendment No. 2513

       Beginning on page 203, strike line 21 and all that follows 
     through page 206, line 15, and insert the following:
       (f) Increase in Limitation on Expenditures under Children's 
     Health Insurance Program.--Section 2105(c)(2)(A) of the 
     Social Security Act (42 U.S.C. 1397ee(c)(2)(A)) is amended by 
     striking ``10'' and inserting ``15''.
                                  ____


                           Amendment No. 2514

       On page 210, between lines 18 and 19, insert the following:

     SEC. 456. REPEAL.

       (a) Repeal.--Section 8401 of the Transportation Equity Act 
     for the 21st Century is repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall take effect as if included in the enactment of the 
     Transportation Equity Act for the 21st Century.
       (c) Offset.--The amount in the Trust Fund established under 
     section 401 that is in excess of the amount that is required 
     to offset the direct spending in this Act shall be reduced by 
     an amount equal to the amount necessary to fund the increase 
     in the amounts specified for allocation under section 2003(c) 
     of the Social Security Act (42 U.S.C. 1397b(c)) as a result 
     of the repeal made by subsection (a).
                                  ____


                           Amendment No. 2415

       On page 210, between lines 18 and 19, insert the following:

     SEC. 456. AUTHORITY FOR STATE INNOVATION UNDER THE MEDICAID 
                   PROGRAM.

       Section 1902(a) of the Social Security Act (42 U.S.C. 
     1396a(a)) is amended by adding at the end the following:
       ``(aa)(1) Notwithstanding any other provision of this 
     title, a State may, subject to paragraph (2), contract with 1 
     or more private entities to administer and integrate the 
     procedures for determining eligibility for medical assistance 
     (including presumptive eligibility for such assistance, in 
     the case of pregnant women and children, in accordance with 
     sections 1920 and 1920A) under the State plan (or a waiver of 
     such plan).
       ``(2) A contract entered into under the authority of 
     paragraph (1) shall provide that appeals of eligibility 
     determinations shall be heard and decided in accordance with 
     the requirements of the State plan (or a waiver of such plan) 
     and this title.''.
                                 ______
                                 

                  ROTH (AND OTHERS) AMENDMENT NO. 2516

  (Ordered to lie on the table.)
  Mr. ROTH (for himself, Mrs. Boxer, Mr. Grassley, Mr. Domenici, Mr. 
Nickles, Mr. Graham, Mr. Coats, Mr. Bond, Mr. Allard, and Mr. Abraham) 
submitted an amendment intended to be proposed by them to the bill, S. 
1415, supra; as follows:

       At the appropriate place, insert:

     SEC. ____. DEDUCTION FOR HEALTH INSURANCE COSTS FOR 
                   INDIVIDUALS NOT ELIGIBLE TO PARTICIPATE IN 
                   EMPLOYER-SUBSIDIZED HEALTH PLANS.

       (a) In General.--Part VII of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to additional 
     itemized deductions) is amended by redesignating section 222 
     as section 223 and by inserting after section 221 the 
     following new section:

     ``SEC. 222. HEALTH INSURANCE COSTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a deduction an amount equal to 100 
     percent of the amount paid during the taxable year for 
     insurance which constitutes medical care for the taxpayer, 
     his spouse, and dependents.
       ``(b) Limitations.--
       ``(1) Other coverage.--Subsection (a) shall not apply to 
     any taxpayer for any calendar month for which the taxpayer is 
     eligible to participate in any subsidized health plan 
     maintained by any employer (or former employer) of the 
     taxpayer or of the spouse of the taxpayer. The preceding 
     sentence shall be applied separately with respect to--
       ``(A) plans which include coverage for qualified long-term 
     care services (as defined in section 7702B(c)) or are 
     qualified long-term care insurance contracts (as defined in 
     section 7702B(b)), and
       ``(B) plans which do not include such coverage and are not 
     such contracts.
       ``(2) Long-term care premiums.--In the case of a qualified 
     long-term care insurance contract (as defined in section 
     7702B(b)), only eligible long-term care premiums (as defined 
     in section 213(d)(10)) shall be taken into account under 
     subsection (a).
       ``(3) Medicare premiums.--Subsection (a) shall not apply to 
     amounts paid as premiums under part B of title XVIII of the 
     Social Security Act.
       ``(c) Special Rules.--For purposes of this section--
       ``(1) Coordination with medical deduction, etc.--Any amount 
     paid by a taxpayer for insurance to which subsection (a) 
     applies shall not be taken into account in computing the 
     amount allowable to the taxpayer as a deduction under section 
     213(a).
       ``(2) Deduction not allowed for self-employment tax 
     purposes.--The deduction allowable by reason of this section 
     shall not be taken into account in determining an 
     individual's net earnings from self-employment (within the 
     meaning of section 1402(a)) for purposes of chapter 2.
       ``(3) Continuation coverage.--Coverage shall not be treated 
     as subsidized for purposes of subsection (b)(1) if--
       ``(A) such coverage is continuation coverage (within the 
     meaning of section 4980B(f)) required to be provided by the 
     employer, and
       ``(B) the taxpayer or the taxpayer's spouse is required to 
     pay a premium for such coverage in an amount not less than 
     100 percent of the applicable premium (within the meaning of 
     section 4980B(f)(4)) for the period of such coverage.''
       (b) Conforming Amendments.--
       (1) Subsection (l) of section 162 of such Code is hereby 
     repealed.
       (2) Subsection (a) of section 62 of such Code is amended by 
     inserting after paragraph (17) the following new paragraph:
       ``(18) Health insurance costs of certain individuals.--The 
     deduction allowed by section 222.''
       (3) The table of sections for part VII of subchapter B of 
     chapter 1 of such Code is amended by striking the last item 
     and inserting the following new items:

``Sec. 222. Health insurance costs.
``Sec. 223. Cross reference.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.
                                 ______
                                 

                   LANDRIEU AMENDMENTS NOS. 2517-2520

  (Ordered to lie on the table.)
  Ms. LANDRIEU submitted four amendments intended to be proposed by her 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2517

       On page 182, strike lines 11 through 23, and insert the 
     following:
       (b) Annual Payments.--Each calender year beginning after 
     the required payment date under subsection (a)(3) the 
     participating tobacco product manufacturers shall make total 
     payments into the Fund for each calendar year in the 
     following applicable base amounts, subject to adjustment as 
     provided in section 403.
       (1) For year 1, an amount equal to the product of $0.65 and 
     the total number of units of tobacco products that were sold 
     in the United States in the previous year.
       (2) For year 2, an amount equal to the product of $1.25 and 
     the total number of units of tobacco products that were sold 
     in the United States in the previous year.
       (3) For year 3, and each subsequent year, an amount equal 
     to the amount paid in the prior year adjusted in accordance 
     with section 403.
                                  ____


                           Amendment No. 2518

       On page 141, between lines 12 and 13, insert the following:
       ``(f) Tobacco Illness Assistance Program.--The Secretary 
     shall establish a program to provide assistance and 
     compensation to individuals (and entities providing services 
     to such individuals) suffering from tobacco-related illnesses 
     and conditions. Under such program the Secretary shall ensure 
     that assistance is targeted at individuals who are determined 
     to be uninsured or underinsured and who can demonstrate 
     financial hardship.
                                  ____


                           Amendment No. 2519

       On page 193, line 16, add at the end the following: ``Such 
     formula shall take into account factors that include--
       ``(1) the number of smokers in each State;
       ``(2) the number of cases of cancer in each State;
       ``(3) the per capita income in each State; and
       ``(4) the number of teen smokers in each State.''.
                                  ____


                           Amendment No. 2520

       On page 199, after line 23, add the following:

[[Page S5722]]

       (f) Federal Employees Child Care Account.--
       (1) In general.--There is established within the trust fund 
     a separate account, to be known as the Federal Employees 
     Child Care Account. Of the net revenue credited to the trust 
     fund under section 401(b)(1) in each fiscal year, $10,000,000 
     shall be allocated to this account.
       (2) Use of funds.--Amounts in the account under paragraph 
     (1) shall be made available to the Director of the Office of 
     Personnel Management for the purpose of ensuring the 
     availability of affordable child care for Federal employees. 
     Such funds shall be provided to such individuals on the basis 
     of a sliding scale to be developed by the Director taking 
     into consideration total family income and the Federal pay 
     scales.
       (3) Authorization of appropriations.--Amounts allocated to 
     the account under paragraph (1) shall be available to the 
     extent and in the amounts provided in advance in 
     appropriations acts, to remain available until expended, only 
     for the purpose described in paragraph (2).
                                 ______
                                 

                 DURBIN (AND DeWINE) AMENDMENT NO. 2521

  (Ordered to lie on the table.)
  Mr. DURBIN (for himself and Mr. DeWine) submitted an amendment 
intended to be proposed by them to the bill, S. 1415, supra; as 
follows:

       In title II, strike subtitle A and insert the following:
       Subtitle A--Performance Objectives to Reduce Underage Use

     SEC. 201. FINDINGS.

       Congress finds the following:
       (1) Reductions in the underage use of tobacco products are 
     critically important to the public health.
       (2) Achieving this critical public health goal can be 
     substantially furthered by increasing the price of tobacco 
     products to discourage underage use if reduction targets are 
     not achieved and by creating financial incentives for 
     manufacturers to discourage youth from using their tobacco 
     products.
       (3) When reduction targets in underage use are not achieved 
     on an industry-wide basis, the price increases that will 
     result from an industry-wide assessment will provide an 
     additional deterrence to youth tobacco use.
       (4) Manufacturer-specific incentives that will be imposed 
     if reduction targets are not met by a manufacturer provide a 
     strong incentive for each manufacturer to make all efforts to 
     discourage youth use of its brands and insure the 
     effectiveness of the industry-wide assessments.

     SEC. 202. PURPOSES AND GOALS.

       (a) Purpose.--It is the purpose of this subtitle to ensure 
     that, in the event that other measures contained in this Act 
     prove to be inadequate to produce substantial reductions in 
     tobacco use by minors, tobacco companies will pay additional 
     assessments. These additional assessments are designed to 
     lower youth tobacco consumption in a variety of ways, 
     including by triggering further increases in the price of 
     tobacco products, by encouraging tobacco companies to work to 
     meet statutory targets for reductions in youth tobacco 
     consumption, and by providing support for further reduction 
     efforts.
       (b) Goals.--As part of a comprehensive national tobacco 
     control policy, the Secretary, working in cooperation with 
     State, Tribal, and local governments and the private sector, 
     shall take all actions under this Act necessary to ensure 
     that the required performance objectives for percentage 
     reductions in underage use of tobacco products set forth in 
     this title are achieved.

     SEC. 203. ANNUAL PERFORMANCE SURVEYS.

       (a) Annual Performance Survey.--Beginning not later than 
     1999 and annually thereafter the Secretary shall conduct a 
     survey, in accordance with the methodology in subsection 
     (e)(1), to determine for each type of tobacco product--
       (1) the percentage of all children who used such type of 
     tobacco product within the past 30 days; and
       (2) the percentage of children who identify each brand of 
     each type of tobacco product as the usual brand of the type 
     smoked or used within the past 30 days.
       (b) Use of Product.--A child shall be considered to have 
     used a manufacturer's tobacco product if the child identifies 
     the manufacturer's tobacco product as the usual brand of 
     tobacco product smoked or used by the child within the past 
     30 days.
       (c) Separate Types of Products.--For purposes of this 
     subtitle cigarettes and smokeless tobacco shall be considered 
     separate types of tobacco products.
       (d) Confidentiality of data.--The Secretary may conduct a 
     survey relating to tobacco use involving minors. If the 
     information collected in the course of conducting the annual 
     performance survey results in the individual supplying the 
     information, or described in the information, being 
     identifiable, the information may not be used for any purpose 
     other than the purpose for which it was supplied unless that 
     individual (or that individual's guardian) consents to its 
     use for such other purposes. The information may not be 
     published or released in any other form if the individual 
     supplying the information, or described in the information, 
     is identifiable unless that individual (or that individual's 
     guardian) consents to its publication or release in other 
     form.
       (e) Methodology.--
       (1) In general.--The survey required by subsection (a) 
     shall--
       (A) be based on a nationally representative sample of young 
     individuals;
       (B) measure use of each type of tobacco product within the 
     past 30 days;
       (C) identify the usual brand of each type of tobacco 
     product used within the past 30 days; and
       (D) permit the calculation of the actual percentage 
     reductions in underage use of a type of tobacco product (or, 
     in the case of the manufacturer-specific surcharge, the use 
     of a type of the tobacco products of a manufacturer) based on 
     the point estimates of the percentage of young individuals 
     reporting use of a type of tobacco product (or, in the case 
     of the manufacturer-specific surcharge, the use of a type of 
     the tobacco products of a manufacturer) from the annual 
     performance survey.
       (2) Criteria for deeming point estimates correct.--Point 
     estimates under paragraph (1)(D) are deemed conclusively to 
     be correct and accurate for calculating actual percentage 
     reductions in underage use of a type of tobacco product (or, 
     in the case of the manufacturer-specific surcharge, the use 
     of a type of the tobacco products of a manufacturer) for the 
     purpose of measuring compliance with percent reduction 
     targets and calculating surcharges provided that the 
     precision of estimates (based on sampling error) of the 
     percentage of children reporting use of a type of tobacco 
     product (or, in the case of the manufacturer-specific 
     surcharge, the use of a type of the tobacco products of a 
     manufacturer) is such that the 95 percent confidence interval 
     around such point estimates is no more than plus or minus 1 
     percent.
       (3) Survey deemed correct, proper, and accurate.--A survey 
     using the methodology required by this subsection is deemed 
     conclusively to be proper, correct, and accurate for purposes 
     of this Act.
       (4) Secretary may adopt different methodology.--The 
     Secretary by notice and comment rulemaking may adopt a survey 
     methodology that is different than the methodology described 
     in paragraph (1) if the different methodology is at least as 
     statistically precise as that methodology.

     SEC. 204. PERFORMANCE OBJECTIVES.

       (a) Baseline Level.--The baseline level for each type of 
     tobacco product, and for each manufacturer with respect to 
     each type of tobacco product, is the percentage of children 
     determined to have used such tobacco product in the first 
     annual performance survey (in 1999).
       (b) Industry-Wide Non-Attainment Assessments.--For the 
     purpose of determining industry-wide non-attainment 
     assessments, the performance objective for the reduction of 
     the percentage of children determined to have used each type 
     of tobacco product is the percentage in subsection (d) as 
     measured from the baseline level for such type of tobacco 
     product.
       (c) Performance Objectives for Existing Manufacturers.--
     Each existing manufacturer shall have as a performance 
     objective the reduction of the percentage of children 
     determined to have used each type of such manufacturer's 
     tobacco products by at least the percentage specified in 
     subsection (d) as measured from the baseline level for such 
     manufacturer for such product.
       (d) Required Percentage Reductions.--The reductions 
     required in this subsection are as follows:
       (1) In the case of cigarettes--
       (A) with respect to the third and fourth annual performance 
     surveys, 20 percent;
       (B) with respect to the fifth and sixth annual performance 
     surveys, 40 percent;
       (C) with respect to the seventh, eighth, and ninth annual 
     performance surveys, 55 percent; and
       (D) with respect to the 10th annual performance survey and 
     each annual performance survey thereafter, 67 percent.
       (2) In the case of smokeless tobacco--
       (A) with respect to the third and fourth annual performance 
     surveys, 12.5 percent;
       (B) with respect to the fifth and sixth annual performance 
     surveys, 25 percent;
       (C) with respect to the seventh, eighth, and ninth annual 
     performance surveys, 35 percent; and
       (D) with respect to the 10th annual performance survey and 
     each annual performance survey thereafter, 45 percent.
       (e) Performance Objective Relative to the De Minimis 
     Level.--If the percentage of children determined to have used 
     a type of the tobacco products of an existing manufacturer in 
     an annual performance survey is equal to or less than the de 
     minimis level, the manufacturer shall be considered to have 
     achieved the applicable performance objective.
       (f) Performance Objectives for New Manufacturers.--Each new 
     manufacturer shall have as its performance objective 
     maintaining the percentage of children determined to have 
     used each type of such manufacturer's tobacco products in 
     each annual performance survey at a level equal to or less 
     than the de minimis level for that year.
       (g) De Minimis Level.--The de minimis level shall be 1 
     percent of children for the applicable year.

     SEC. 205. MEASURES TO HELP ACHIEVE THE PERFORMANCE 
                   OBJECTIVES.

       (a) Annual Determination.--Beginning in 2001, and annually 
     thereafter, the Secretary shall, based on the annual 
     performance surveys conducted under section 203, determine if 
     the performance objectives for each type of tobacco product 
     under section 204 has been

[[Page S5723]]

     achieved and if each manufacturer has achieved the applicable 
     performance objective under section 204.
       (b) Industry-Wide Non-Attainment Assessments.--
       (1) Industry-wide non-attainment percentage.--The Secretary 
     shall determine the industry-wide non-attainment percentage, 
     if any, for cigarettes and for smokeless tobacco for each 
     calendar year.
       (2) Non-attainment assessment for cigarettes.--For each 
     calendar year in which the performance objective under 
     section 204(b) is not attained for cigarettes, the Secretary 
     shall assess a surcharge on cigarette manufacturers as 
     follows:

----------------------------------------------------------------------------------------------------------------
                If the non-attainment percentage is:                             The surcharge is:              
----------------------------------------------------------------------------------------------------------------
Not more than 5 percentage points                                   $40,000,000 multiplied by the non-attainment
                                                                                                      percentage
More than 5 but not more than 20 percentage points                 $200,000,000, plus $120,000,000 multiplied by
                                                                    the non-attainment percentage in excess of 5
                                                                       but not in excess of 20 percentage points
More than 20 percentage points                                                                    $2,000,000,000
----------------------------------------------------------------------------------------------------------------

       (3) Non-attainment assessment for smokeless tobacco.--For 
     each year in which the performance objective under section 
     204(b) is not attained for smokeless tobacco, the Secretary 
     shall assess a surcharge on smokeless tobacco product 
     manufacturers as follows:

----------------------------------------------------------------------------------------------------------------
                If the non-attainment percentage is:                             The surcharge is:              
----------------------------------------------------------------------------------------------------------------
Not more than 5 percentage points                                    $4,000,000 multiplied by the non-attainment
                                                                                                      percentage
More than 5 but not more than 20 percentage points                   $20,000,000, plus $12,000,000 multiplied by
                                                                    the non-attainment percentage in excess of 5
                                                                       but not in excess of 20 percentage points
More than 20 percentage points                                                                      $200,000,000
----------------------------------------------------------------------------------------------------------------

       (4) Strict liability; joint and several liability.--
     Liability for any surcharge imposed under this subsection 
     shall be--
       (A) strict liability; and
       (B) joint and several liability--
       (i) among all cigarette manufacturers for surcharges 
     imposed under paragraph (2); and
       (ii) among all smokeless tobacco manufacturers for 
     surcharges imposed under paragraph (3).
       (5) Surcharge liability among manufacturers.--A tobacco 
     product manufacturer shall be liable under this subsection to 
     one or more other manufacturers if the plaintiff tobacco 
     product manufacturer establishes by a preponderance of the 
     evidence that the defendant tobacco product manufacturer, 
     through its acts or omissions, was responsible for a 
     disproportionate share of the non-attainment surcharge as 
     compared to the responsibility of the plaintiff manufacturer.
       (6) Exemptions for small manufacturers.--
       (A) Allocation by market share.--The Secretary shall 
     allocate the assessments under this subsection according to 
     each manufacturer's share of the domestic cigarette or 
     domestic smokeless tobacco market, as appropriate, in the 
     year for which the surcharge is being assessed, based on 
     actual Federal excise tax payments.
       (B) Exemption.--In any year in which a surcharge is being 
     assessed, the Secretary shall exempt from payment any tobacco 
     product manufacturer with less than 1 percent of the domestic 
     market share for a specific category of tobacco product 
     unless the Secretary finds that the manufacturer's products 
     are used by underage individuals at a rate equal to or 
     greater than the manufacturer's total market share for the 
     type of tobacco product.
       (c) Manufacturer-Specific Surcharges.--
       (1) In general.--If the Secretary determines that the 
     required percentage reduction in use of a type of tobacco 
     product has not been achieved by a manufacturer for a year, 
     the Secretary shall impose a surcharge on such manufacturer 
     under this paragraph.
       (2) Cigarettes.--For each calendar year in which a 
     cigarette manufacturer fails to achieve the performance 
     objective under section 204(c), the Secretary shall assess a 
     surcharge on that manufacturer in an amount equal to the 
     manufacturer's share of youth incidence for cigarettes 
     multiplied by the following surcharge level:

----------------------------------------------------------------------------------------------------------------
     If the non-attainment percentage for the manufacturer is:                The surcharge level is:           
----------------------------------------------------------------------------------------------------------------
Not more than 5 percentage points                                   $80,000,000 multiplied by the non-attainment
                                                                                                      percentage
More than 5 but not more than 24.1 percentage points               $400,000,000, plus $240,000,000 multiplied by
                                                                    the non-attainment percentage in excess of 5
                                                                     but not in excess of 24.1 percentage points
More than 24.1 percentage points                                                                  $5,000,000,000
----------------------------------------------------------------------------------------------------------------

       (3) Smokeless tobacco.--For each calendar year in which a 
     smokeless tobacco product manufacturer fails to achieve the 
     performance objective under section 204(c), the Secretary 
     shall assess a surcharge on that manufacturer in an amount 
     equal to the manufacturer's share of youth incidence for 
     smokeless tobacco products multiplied by the following 
     surcharge level:

----------------------------------------------------------------------------------------------------------------
     If the non-attainment percentage for the manufacturer is:                The surcharge level is:           
----------------------------------------------------------------------------------------------------------------
Not more than 5 percentage points                                    $8,000,000 multiplied by the non-attainment
                                                                                                      percentage
More than 5 but not more than 24.1 percentage points                 $40,000,000, plus $24,000,000 multiplied by
                                                                    the non-attainment percentage in excess of 5
                                                                     but not in excess of 24.1 percentage points
More than 24.1 percentage points                                                                    $500,000,000
----------------------------------------------------------------------------------------------------------------

       (4) Manufacturer's share of youth incidence.--For purposes 
     of this subsection, the term ``manufacturer's share of youth 
     incidence'' means--
       (A) for cigarettes, the percentage of all youth smokers 
     determined to have used that manufacturer's cigarettes; and
       (B) for smokeless tobacco products, the percentage of all 
     youth users of smokeless tobacco products determined to have 
     used that manufacturer's smokeless tobacco products.
       (5) De minimis levels.--If a manufacturer is a new 
     manufacturer or the manufacturer's baseline level for a type 
     of tobacco product is less than the de minimis level, the 
     non-attainment percentage (for purposes of paragraph (2) or 
     (3)) shall be equal to the number of percentage points by 
     which the percentage of children who used the manufacturer's 
     tobacco products of the applicable type exceeds the de 
     minimis level.
       (d) Surcharges To Be Adjusted for Inflation.--
       (1) In general.--Beginning with the fourth calendar year 
     after the date of enactment of this Act, each dollar amount 
     in the tables in subsections (b)(2), (b)(3), (c)(2), and 
     (c)(3) shall be increased by the inflation adjustment.
       (2) Inflation adjustment.--For purposes of paragraph (1), 
     the inflation adjustment for any calendar year is the 
     percentage (if any) by which--
       (A) the CPI for the preceding calendar year; exceeds
       (B) the CPI for the calendar year 1998.
       (3) CPI.--For purposes of paragraph (2), the CPI for any 
     calendar year is the average of the Consumer Price Index for 
     all-urban consumers published by the Department of Labor.
       (4) Rounding.--If any increase determined under paragraph 
     (1) is not a multiple of $1,000, the increase shall be 
     rounded to the nearest multiple of $1,000.
       (e) Method of Surcharge Assessment.--The Secretary shall 
     assess a surcharge for a specific calendar year on or before 
     May 1 of the subsequent calendar year. Surcharge payments 
     shall be paid on or before July 1 of the year in which they 
     are assessed. The Secretary may establish, by regulation, 
     interest at a rate up to 3 times the prevailing prime rate at 
     the time the surcharge is assessed, and additional charges in 
     an amount up to 3 times the surcharge, for late payment of 
     the surcharge.
       (f) Business Expense Deduction.--In order to maximize the 
     financial deterrent effect of the assessments and surcharges 
     established in this section, any such payment shall not be 
     deductible as an ordinary and necessary business expense or 
     otherwise under the Internal Revenue Code of 1986.
       (g) Appeal Rights.--The amount of any surcharge is 
     committed to the sound discretion of the Secretary and shall 
     be subject to judicial review by the United States Court of 
     Appeals for the District of Columbia Circuit, based on the 
     arbitrary and capricious standard of section 706(2)(A) of 
     title 5, United States Code. Notwithstanding any other 
     provisions of law, no court shall have authority to stay any 
     surcharge payments due the Secretary under this Act pending 
     judicial review.
       (h) Responsibility for Agents.--In any action brought under 
     this subsection, a tobacco product manufacturer shall be held 
     responsible for any act or omission of its attorneys, 
     advertising agencies, or other agents that contributed to 
     that manufacturer's responsibility for the surcharge assessed 
     under this section.

     SEC. 206. DEFINITIONS.

       In this subtitle:
       (1) Children.--The term ``children'' means individuals who 
     are 12 years of age or older and under the age of 18.
       (2) Cigarette manufacturers.--The term ``cigarette 
     manufacturers'' means manufacturers of cigarettes sold in the 
     United States.
       (3) Existing manufacturer.--The term ``existing 
     manufacturer'' means a manufacturer which manufactured a 
     tobacco product on or before the date of the enactment of 
     this title.
       (4) New manufacturer.--The term ``new manufacturer'' means 
     a manufacturer which begins to manufacture a type of tobacco 
     product after the date of the enactment of this title.
       (5) Non-attainment percentage.--The term ``non-attainment 
     percentage'' means the number of percentage points yielded--
       (A) for a calendar year in which the percent incidence of 
     underage use of the applicable type of tobacco product is 
     less than the baseline level, by subtracting--
       (i) the percentage by which the percent incidence of 
     underage use of the applicable type of tobacco product in 
     that year is less than the baseline level, from
       (ii) the required percentage reduction applicable in that 
     year; and
       (B) for a calendar year in which the percent incidence of 
     underage use of the applicable type of tobacco product is 
     greater than the baseline level, adding--
       (i) the percentage by which the percent incidence of 
     underage use of the applicable type of tobacco product in 
     that year is greater than the baseline level; and

[[Page S5724]]

       (ii) the required percentage reduction applicable in that 
     year.
       (6) Smokeless tobacco product manufacturers.--The term 
     ``smokeless tobacco product manufacturers'' means 
     manufacturers of smokeless tobacco products sold in the 
     United States.
                                 ______
                                 

                    DURBIN AMENDMENTS NOS. 2522-2524

  (Ordered to lie on the table.)
  Mr. DURBIN submitted three amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2522

       In section 1404(a)(1)(B), strike ``on mass transit 
     vehicles'' and insert ``on or in mass transit vehicles and 
     systems''.
                                  ____


                           Amendment No. 2523

       In the amendment made by section 221, insert after the part 
     heading the following:

     ``SEC. 1980. DEFINITION.

       ``In this part and part E, the term `tobacco product' has 
     the meaning given such term in section 201(kk) of the Federal 
     Food, Drug and Cosmetic Act, and shall include cigars, 
     smokeless tobacco, and cigarettes.
                                  ____


                           Amendment No. 2524

       At the appropriate place, insert the following:

     SEC. ____. CONGRESSIONAL ACCOUNTABILITY.

       (a) Application of Laws.--Section 102 of the Congressional 
     Accountability Act of 1995 (2 U.S.C. 1302) is amended by 
     adding at the end the following:
       ``(12) Section 502 of the National Tobacco Policy and Youth 
     Smoking Reduction Act.''.
       (b) Procedures.--Title II of the Congressional 
     Accountability Act of 1995 (2 U.S.C. 1311 et seq.) is 
     amended--
       (1) by redesignating parts E and F as parts F and G, 
     respectively; and
       (2) by inserting after part D the following:

        ``PART E--TOBACCO SMOKE EXPOSURE REDUCTION REQUIREMENTS

     ``SEC. 222. RIGHTS AND PROTECTIONS UNDER THE NATIONAL TOBACCO 
                   POLICY AND YOUTH SMOKING REDUCTION ACT.

       ``(a) Reduction of Exposure.--
       ``(1) Rights and protections.--Each responsible entity 
     shall comply with section 502 of the National Tobacco Policy 
     and Youth Smoking Reduction Act.
       ``(2) Definition.--For the purpose of this section and the 
     application of such section 502 under this section--
       ``(A) the term `public facility' means a building owned by 
     or leased to an entity of the legislative branch of the 
     Federal Government, that is not a building or portion 
     excluded under section 501(2)(B) of the National Tobacco 
     Policy and Youth Smoking Reduction Act; and
       ``(B) the term `responsible entity' means an employing 
     office, the General Accounting Office, the Government 
     Printing Office, the Library of Congress, and any other 
     entity of the legislative branch.
       ``(b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such order enjoining the violation or such civil 
     penalty as would be appropriate if issued under subsection 
     (b) or (e) of section 503 of the National Tobacco Policy and 
     Youth Smoking Reduction Act.
       ``(c) Procedures.--
       ``(1) Hearings and review.--After providing notice as 
     described in section 503(c) of the National Tobacco Policy 
     and Youth Smoking Reduction Act, an aggrieved person may file 
     a complaint alleging a violation of subsection (a) with the 
     Office against the responsible entity. The complaint shall be 
     submitted to a hearing officer for decision pursuant to 
     subsection (b) through (h) of section 405, subject to review 
     by the Board pursuant to section 406.
       ``(2) Judicial review.--A party aggrieved by a final 
     decision of the Board under paragraph (1) may file a petition 
     for review with the United States Court of Appeals for the 
     Federal Circuit pursuant to section 407.
       ``(d) Regulations To Implement Section.--
       ``(1) In general.--The Board shall, pursuant to section 
     304, issue regulations to implement this section.
       ``(2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsection (a) except to 
     the extent that the Board may determine, for good cause shown 
     and stated together with the regulation, that a modification 
     of such regulations would be more effective for the 
     implementation of the rights and protections under this 
     section.
       ``(3) Office responsible for correction.--The regulations 
     issued under paragraph (1) shall include a method of 
     identifying, for purposes of this section and for different 
     categories of violations of subsection (a), the office 
     responsible for correction of a particular violation.
       ``(e) Effective Date.--Subsections (a) through (c) shall be 
     effective on January 1, 1999.''.
       (c) Conforming Amendments.--
       (1) The table of contents of the Congressional 
     Accountability Act of 1995 is amended by striking the items 
     relating to parts E and F of title II of such Act and 
     inserting the following:

         Part E--Tobacco Smoke Exposure Reduction Requirements

Sec. 222. Rights and protections under the National Tobacco Policy and 
              Youth Smoking Reduction Act.

                            Part F--General

Sec. 225. Generally applicable remedies and limitations.

                             Part G--Study

Sec. 230. Study and recommendations regarding General Accounting 
              Office, Government Printing Office, and Library of 
              Congress.
       (2) Section 407(a)(1)(C) of the Congressional 
     Accountability Act of 1995 (2 U.S.C. 1407(a)(1)(C)) is 
     amended by inserting before the comma the following: ``, or a 
     party aggrieved by a final decision of the Board under 
     section 222(c)''.
       (3) Section 414 of such Act (2 U.S.C. 1414) is amended by 
     inserting ``222,'' after ``220,''.
       (4) Section 415(c) of such Act (2 U.S.C. 1415(c)) is 
     amended--
       (A) in the subsection heading, by striking ``and Access'' 
     and inserting ``Access, and Tobacco Smoke Exposure 
     Reduction''; and
       (B) by striking ``or 215'' and inserting ``215, or 222''.
                                 ______
                                 

                      BINGAMAN AMENDMENT NO. 2525

  (Ordered to lie on the table.)
  Mr. BINGAMAN submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       At the end of section 451, add the following:
       (f) Veterans Compensation Account.--
       (1) In general.--There is established within the trust fund 
     a separate account, to be known as the Veterans Compensation 
     Account. Of the net revenues credited to the trust fund under 
     section 401(b)(1), $10,000,000,000 shall be allocated to this 
     account over the 5-fiscal year period beginning on the date 
     of enactment of this Act.
       (2) Authorization of appropriations.--Amounts in the 
     Veterans Compensation Account shall be available to the 
     extent and in the amounts provided in advance in 
     appropriations acts, to remain available until expended, only 
     for purposes of enabling the Department of Veterans Affairs 
     to provide disability payments to former military personnel 
     who became addicted to tobacco while on active duty and who 
     have sustained a disability for tobacco-related illnesses.
                                 ______
                                 

                       MURRAY AMENDMENT NO. 2526

  (Ordered to lie on the table.)
  Mrs. MURRAY submitted an amendment intended to be proposed by her to 
the bill, S. 1415, supra; as follows:

       At the end of section 501(2), add the following:
       (D) Child care providers.--The term ``public facility'' 
     includes any residence or facility at which a licensed or 
     certified child care provider provides child care services, 
     regardless of whether the residence or facility serves 10 or 
     more individuals each day.
                                 ______
                                 

                    CONRAD AMENDMENTS NOS. 2527-2529

  (Ordered to lie on the table.)
  Mr. CONRAD submitted three amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2527

       On page 124, line 8, strike ``5'' and insert ``50''.
                                  ____


                           Amendment No. 2528

       On page 125, strike lines 4 through 8, and insert the 
     following:

     ``an amount equal to 40 percent of the amount determined 
     under section 1933 of the Public Health Service Act (42 
     U.S.C. 300x-33) for the State for the fiscal year from the 
     amounts otherwise payable under this Act.''.
                                  ____


                           Amendment No. 2529

       On page 195, between lines 17 and 18, insert the following 
     flush sentence:

     ``Not less than $500,000,000 of the amounts made available 
     under this subparagraph shall be used each year to carry out 
     counter-advertising activities under clause (i).''.
                                 ______
                                 

                       KERREY AMENDMENT NO. 2530

  (Ordered to lie on the table.)
  Mr. KERREY submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       Strike title XV and insert the following:
                      TITLE XV--TOBACCO TRANSITION

     SEC. 1501. DEFINITIONS.

       In this title:
       (1) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (2) Lease.--The term ``lease'' means--
       (A) the rental of quota on either a cash rent or crop share 
     basis;
       (B) the rental of farmland to produce tobacco under a farm 
     marketing quota; or
       (C) the lease and transfer of quota for the marketing of 
     tobacco produced on the farm of a lessor.
       (3) Owner.--The term ``owner'' means a person that, on the 
     date of enactment of this Act, owns quota provided by the 
     Secretary.

[[Page S5725]]

       (4) Producer.--The term ``producer'' means a person that 
     for each of the 1995 through 1997 crops of tobacco (as 
     determined by the Secretary) that were subject to quota--
       (A) leased quota or farmland;
       (B) shared in the risk of producing a crop of tobacco; and
       (C) marketed the tobacco subject to quota.
       (5) Quota.--The term ``quota'' means the right to market 
     tobacco under a basic marketing quota or acreage allotment 
     allotted to a person under the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1281 et seq.).
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (7) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (8) Tobacco.--The term ``tobacco'' means any kind of 
     tobacco for which--
       (A) a marketing quota is in effect;
       (B) a marketing quota is not disapproved by producers; or
       (C) price support is available.
          Subtitle A--Payments for Lost Value of Tobacco Crops

     SEC. 1511. PAYMENTS FOR LOST VALUE OF TOBACCO CROPS.

       (a) In General.--For each of fiscal years 1999 through 
     2005, the Secretary shall make payments for the lost value of 
     tobacco crops to owners and producers from funds made 
     available from the National Tobacco Trust Fund established by 
     section 401.
       (b) Amount.--
       (1) Owners.--The amount of the payment made to an owner for 
     a fiscal year under this section shall equal 30 percent of 
     the value of the tobacco produced under a tobacco farm 
     marketing quota or farm acreage allotment established owned 
     by the owner under the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1281 et seq.) for the 1997 crop year.
       (2) Producers.--The amount of the payment made to a 
     producer for a fiscal year under this section shall equal 15 
     percent of the value of the tobacco produced by the producer 
     under a tobacco farm marketing quota or farm acreage 
     allotment established under the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1281 et seq.) for the 1997 crop year.
           Subtitle B--Rural Economic Assistance Block Grants

     SEC. 1521. RURAL ECONOMIC ASSISTANCE BLOCK GRANTS.

       (a) In General.--From funds made available from the 
     National Tobacco Trust Fund established by section 401, the 
     Secretary shall use $200,000,000 for each of fiscal years 
     1999 through 2003 to provide block grants to tobacco-growing 
     States to assist areas of such a State that are economically 
     dependent on the production of tobacco.
       (b) Payments by Secretary to Tobacco-Growing States.--
       (1) In general.--The Secretary shall use the amount 
     available for a fiscal year under subsection (a) to make 
     block grant payments to the Governors of tobacco-growing 
     States.
       (2) Amount.--The amount of a block grant paid to a tobacco-
     growing State shall be based on, as determined by the 
     Secretary--
       (A) the number of counties in the State in which tobacco 
     production is a significant part of the county's economy; and
       (B) the level of economic dependence of the counties on 
     tobacco production.
       (c) Grants by States To Assist Tobacco-Growing Areas.--
       (1) In general.--A Governor of a tobacco-growing State 
     shall use the amount of the block grant to the State under 
     subsection (b) to make grants to counties or other public or 
     private entities in the State to assist areas that are 
     dependent on the production of tobacco, as determined by the 
     Governor.
       (2) Amount.--The amount of a grant paid to a county or 
     other entity to assist an area shall be based on--
       (A) the ratio of gross tobacco sales receipts in the area 
     to the total farm income in the area; and
       (B) the ratio of all tobacco related receipts in the area 
     to the total income in the area.
       (3) Use of grants.--A county or other entity that receives 
     a grant under this subsection may use the grant in a manner 
     determined appropriate by the county or entity (with the 
     approval of the State) to assist producers and other persons 
     that are economically dependent on the production of tobacco, 
     including use for--
       (A) on-farm diversification, alternatives to the production 
     of tobacco, and risk management;
       (B) off-farm activities such as education, retraining, and 
     development of non-tobacco related jobs; and
       (C) assistance to tobacco warehouse owners or operators.
       (d) Termination of Authority.--The authority provided by 
     this section terminates September 30, 2003.
  Subtitle C--Tobacco Price Support and Production Adjustment Programs

     SEC. 1531. TERMINATION OF TOBACCO PRICE SUPPORT PROGRAM.

       (a) Parity Price Support.--Section 101 of the Agricultural 
     Act of 1949 (7 U.S.C. 1441) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``tobacco (except as otherwise provided herein), corn,'' and 
     inserting ``corn'';
       (2) by striking subsections (c), (g), (h), and (i);
       (3) in subsection (d)(3)--
       (A) by striking ``, except tobacco,''; and
       (B) by striking ``and no price support shall be made 
     available for any crop of tobacco for which marketing quotas 
     have been disapproved by producers;''; and
       (4) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (b) Termination of Tobacco Price Support and No Net Cost 
     Provisions.--Sections 106, 106A, and 106B of the Agricultural 
     Act of 1949 (7 U.S.C. 1445, 1445-1, 1445-2) are repealed.
       (c) Definition of Basic Agricultural Commodity.--Section 
     408(c) of the Agricultural Act of 1949 (7 U.S.C. 1428(c)) is 
     amended by striking ``tobacco,''.
       (d) Review of Burley Tobacco Imports.--Section 3 of Public 
     Law 98-59 (7 U.S.C. 625) is repealed.
       (e) Powers of Commodity Credit Corporation.--Section 5 of 
     the poration Charter Act (15 U.S.C. 714c) is amended by 
     inserting ``(other than tobacco)'' after ``agricultural 
     commodities'' each place it appears.
       (f) Transition Provisions.--
       (1) Liability.--The amendments made by this section shall 
     not affect the liability of any person under any provision of 
     law as in effect before the effective date of this section.
       (2) Tobacco stocks and loans.--The Secretary shall issue 
     regulations that require--
       (A) the orderly disposition of tobacco stocks; and
       (B) the repayment of all tobacco price support loans by not 
     later than 1 year after the effective date of this section.
       (g) Crops.--This section and the amendments made by this 
     section shall apply with respect to the 1999 and subsequent 
     crops of the kind of tobacco involved.

     SEC. 1532. TERMINATION OF TOBACCO PRODUCTION ADJUSTMENT 
                   PROGRAMS.

       (a) Declaration of Policy.--Section 2 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1282) is amended by striking 
     ``tobacco,''.
       (b) Definitions.--Section 301(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1301(b)) is amended--
       (1) in paragraph (3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraph (D) as subparagraph (C);
       (2) in paragraph (6)(A), by striking ``tobacco,'';
       (3) in paragraph (7), by striking the following:
       ``tobacco (flue-cured), July 1--June 30;
       ``tobacco (other than flue-cured), October 1-September 
     30;'';
       (4) in paragraph (10)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B);
       (5) in paragraph (11)(B), by striking ``and tobacco'';
       (6) in paragraph (12), by striking ``tobacco,'';
       (7) in paragraph (14)--
       (A) in subparagraph (A), by striking ``(A)''; and
       (B) by striking subparagraphs (B), (C), and (D);
       (8) by striking paragraph (15);
       (9) in paragraph (16)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (10) by redesignating paragraphs (16) and (17) as 
     paragraphs (15) and (16), respectively.
       (c) Parity Payments.--Section 303 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1303) is amended in the 
     first sentence by striking ``rice, or tobacco,'' and 
     inserting ``or rice,''.
       (d) Marketing Quotas.--Part I of subtitle B of title III of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et 
     seq.) is repealed.
       (e) Administrative Provisions.--Section 361 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
     amended by striking ``tobacco,''.
       (f) Adjustment of Quotas.--Section 371 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``peanuts, or tobacco'' and inserting ``or peanuts''; and
       (2) in the first sentence of subsection (b), by striking 
     ``peanuts or tobacco'' and inserting ``or peanuts''.
       (g) Reports and Records.--Section 373 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
       (1) by striking ``peanuts, or tobacco'' each place it 
     appears in subsections (a) and (b) and inserting ``or 
     peanuts''; and
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``all persons 
     engaged in the business of redrying, prizing, or stemming 
     tobacco for producers,''; and
       (B) in the last sentence, by striking ``$500;'' and all 
     that follows through the period at the end of the sentence 
     and inserting ``$500.''.
       (h) Regulations.--Section 375(a) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1375(a)) is amended by 
     striking ``peanuts, or tobacco'' and inserting ``or 
     peanuts''.
       (i) Eminent Domain.--Section 378 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1378) is amended--
       (1) in the first sentence of subsection (c), by striking 
     ``cotton, tobacco, and peanuts'' and inserting ``cotton and 
     peanuts''; and
       (2) by striking subsections (d), (e), and (f).
       (j) Burley Tobacco Farm Reconstitution.--Section 379 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1379) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``(a)''; and

[[Page S5726]]

       (B) in paragraph (6), by striking ``, but this clause (6) 
     shall not be applicable in the case of burley tobacco''; and
       (2) by striking subsections (b) and (c).
       (k) Acreage-Poundage Quotas.--Section 4 of the Act entitled 
     ``An Act to amend the Agricultural Adjustment Act of 1938, as 
     amended, to provide for acreage-poundage marketing quotas for 
     tobacco, to amend the tobacco price support provisions of the 
     Agricultural Act of 1949, as amended, and for other 
     purposes'', approved April 16, 1965 (Public Law 89-12; 7 
     U.S.C. 1314c note), is repealed.
       (l) Burley Tobacco Acreage Allotments.--The Act entitled 
     ``An Act relating to burley tobacco farm acreage allotments 
     under the Agricultural Adjustment Act of 1938, as amended'', 
     approved July 12, 1952 (7 U.S.C. 1315), is repealed.
       (m) Transfer of Allotments.--Section 703 of the Food and 
     Agriculture Act of 1965 (7 U.S.C. 1316) is repealed.
       (n) Advance Recourse Loans.--Section 13(a)(2)(B) of the 
     Food Security Improvements Act of 1986 (7 U.S.C. 1433c-
     1(a)(2)(B)) is amended by striking ``tobacco and''.
       (o) Tobacco Field Measurement.--Section 1112 of the Omnibus 
     Budget Reconciliation Act of 1987 (Public Law 100-203) is 
     amended by striking subsection (c).
       (p) Liability.--The amendments made by this section shall 
     not affect the liability of any person under any provision of 
     law as in effect before the effective date under subsection 
     (q).
       (q) Crops.--This section and the amendments made by this 
     section shall apply with respect to the 1999 and subsequent 
     crops of the kind of tobacco involved.
                       Subtitle D--Miscellaneous

     SEC. 1541. TOBACCO PRODUCERS MARKETING CORPORATION.

       (a) Establishment.--There is established a corporation to 
     be known as the ``Tobacco Producers Marketing Corporation'', 
     which shall be a federally chartered instrumentality of the 
     United States.
       (b) Duties.--The Corporation negotiate with buyers of 
     tobacco produced in the United States on behalf of producers 
     of the tobacco that elect to be represented by the 
     Corporation (referred to in this section as ``participating 
     producers'').
       (c) Board of Directors.--
       (1) In general.--The powers of the Corporation shall be 
     vested in a Board of Directors.
       (2) Members.--The Board of Directors shall composed of 
     members elected by participating producers.
       (3) Membership qualifications.--A member of the Board shall 
     not hold any Federal, State, or local elected office or be a 
     Federal officer or employee.
       (4) Chairpersons.--The chairperson of the Board shall be 
     elected by members of the Board.
       (5) Executive director.--
       (A) Appointment.--The Board shall appoint an Executive 
     Director.
       (B) Duties.--The Executive Director shall be the chief 
     executive officer of the Corporation, with such power and 
     authority as may be conferred by the Board.
       (C) Compensation.--The Executive Director shall receive 
     basic pay at the rate provided for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (6) Officers.--The Board shall establish the offices and 
     appoint the officers of the Corporation, including a 
     Secretary, and define the duties of the officers in a manner 
     consistent with this section.
       (7) Meetings.--
       (A) In general.--The Board shall meet at least 3 times each 
     fiscal year at the call of a Chairperson or at the request of 
     the Executive Director.
       (B) Location.--The location of a meeting shall be subject 
     to approval of the Executive Director.
       (C) Quorum.--A quorum of the Board shall consist of a 
     majority of the members.
       (8) Term; vacancies.--
       (A) Term.--The term of office of a member of the Board 
     elected under paragraph (2) shall be 4 years.
       (B) Vacancies.--A vacancy on the Board shall be filled in 
     the same manner as the original appointment was made.
       (9) Compensation.--
       (A) In general.--A member of the Board shall receive, for 
     each day (including travel time) that the member is engaged 
     in the performance of the functions of the Board, 
     compensation at a rate not to exceed the daily equivalent of 
     the annual rate in effect for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (B) Expenses.--A member of the Board shall be reimbursed 
     for travel, subsistence, and other necessary expenses 
     incurred by the member in the performance of the duties of 
     the member.
       (10) Conflict of interest; financial disclosure.--
       (A) Conflict of interest.--Except as provided in 
     subparagraph (C), a member of the Board shall not vote on any 
     matter concerning any application, contract, or claim, or 
     other particular matter pending before the Corporation, in 
     which, to the knowledge of the member, the member, spouse, or 
     child of the member, partner of the member, or organization 
     in which the member is serving as officer, director, trustee, 
     partner, or employee, or any person or organization with 
     which the member is negotiating or has any arrangement 
     concerning prospective employment, has a financial interest.
       (B) Violations.--Violation of subparagraph (A) by a member 
     of the Board shall be cause for removal of the member, but 
     shall not impair or otherwise affect the validity of any 
     otherwise lawful action by the Corporation in which the 
     member participated.
       (C) Exceptions.--
       (i) In general.--Except as provided in clause (ii), the 
     prohibitions contained in subparagraph (A) shall not apply 
     if--

       (I) a member of the Board advises the Board of the nature 
     of the particular matter in which the member proposes to 
     participate, and if the member makes a full disclosure of the 
     financial interest, prior to any participation; and
       (II) the Board determines, by majority vote, that the 
     financial interest is too remote or too inconsequential to 
     affect the integrity of the member's services to the 
     Corporation in that matter.

       (ii) Vote.--The member involved shall not vote on the 
     determination under clause (i)(II).
       (D) Financial disclosure.--A Board member shall be subject 
     to the financial disclosure requirements of subchapter B of 
     chapter XVI of title 5, Code of Federal Regulations (or any 
     corresponding or similar regulation or ruling), applicable to 
     a special Government employee (as defined in section 202(a) 
     of title 18, United States Code).
       (11) Bylaws.--The Board shall adopt, and may from time to 
     time amend, any bylaw that is necessary for the proper 
     management and functioning of the Corporation.
       (12) Personnel.--The Corporation may select and appoint 
     officers, attorneys, employees, and agents, who shall be 
     vested with such powers and duties as the Corporation may 
     determine.
       (d) General Powers.--In addition to any other powers 
     granted to the Corporation under this section, the 
     Corporation--
       (1) shall have succession in its corporate name;
       (2) may adopt, alter, and rescind any bylaw and adopt and 
     alter a corporate seal, which shall be judicially noticed;
       (3) may enter into any agreement or contract with a person 
     or private or governmental agency;
       (4) may lease, purchase, accept a gift or donation of, or 
     otherwise acquire, use, own, hold, improve, or otherwise deal 
     in or with, and sell, convey, mortgage, pledge, lease, 
     exchange, or otherwise dispose of, any property or interest 
     in property, as the Corporation considers necessary in the 
     transaction of the business of the Corporation;
       (5) may sue and be sued in the corporate name of the 
     Corporation, except that--
       (A) no attachment, injunction, garnishment, or similar 
     process shall be issued against the Corporation or property 
     of the Corporation; and
       (B) exclusive original jurisdiction shall reside in the 
     district courts of the United States, and the Corporation may 
     intervene in any court in any suit, action, or proceeding in 
     which the Corporation has an interest;
       (6) may independently retain legal representation;
       (7) may provide for and designate such committees, and the 
     functions of the committees, as the Board considers necessary 
     or desirable;
       (8) may indemnify officers of the Corporation, as the Board 
     considers necessary and desirable, except that the officers 
     shall not be indemnified for an act outside the scope of 
     employment;
       (9) may, with the consent of any board, commission, 
     independent establishment, or executive department of the 
     Federal Government, including any field service, use 
     information, services, facilities, officials, and employees 
     in carrying out this section, and pay for the use, which 
     payments shall be transferred to the applicable appropriation 
     account that incurred the expense;
       (10) may obtain the services and fix the compensation of 
     any consultant and otherwise procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code;
       (11) may use the United States mails on the same terms and 
     conditions as the Executive agencies of the Federal 
     Government;
       (12) shall have the rights, privileges, and immunities of 
     the United States with respect to the right to priority of 
     payment with respect to debts due from bankrupt, insolvent, 
     or deceased creditors;
       (13) may collect or compromise any obligations assigned to 
     or held by the Corporation, including any legal or equitable 
     rights accruing to the Corporation;
       (14) shall determine the character of, and necessity for, 
     obligations and expenditures of the Corporation and the 
     manner in which the obligations and expenditures shall be 
     incurred, allowed, and paid, subject to provisions of law 
     specifically applicable to Government corporations;
       (15) may make final and conclusive settlement and 
     adjustment of any claim by or against the Corporation or a 
     fiscal officer of the Corporation;
       (16) may sell assets, loans, and equity interests acquired 
     in connection with the financing of projects funded by the 
     Corporation; and
       (17) may exercise all other lawful powers necessarily or 
     reasonably related to the establishment of the Corporation to 
     carry out this title and the powers, purposes, functions, 
     duties, and authorized activities of the Corporation.

[[Page S5727]]

     SEC. 1542. ASSISTANCE FOR PRODUCERS EXPERIENCING LOSSES OF 
                   FARM INCOME.

       (a) In General.--Notwithstanding any other provision of 
     this title, from amounts made available to carry out this 
     title, the Secretary shall use $250,000,000 for each of 
     fiscal years 1999 through 2004 to establish a program to 
     indemnify eligible producers that have experienced, or are 
     experiencing, catastrophic losses in farm income, as 
     determined by the Secretary.
       (b) Gross Income and Payment Limitations.--In carrying out 
     this section, the Secretary shall, to the maximum extent 
     practicable, use gross income and payment limitations 
     established for the Disaster Reserve Assistance Program under 
     section 813 of the Agricultural Act of 1970 (7 U.S.C. 1427a).

     SEC. 1543. SAVINGS.

       Except as provided in section 1542, any savings derived as 
     a result of this title shall be used for tobacco use 
     prevention and cessation initiatives.
                                 ______
                                 

                     BOND AMENDMENTS NOS. 2531-2532

  (Ordered to lie on the table.)
  Mr. BOND submitted two amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2531

       (1) Title II, Subtitle B add the following:
       Sec. 231. (B)(2)(D)(ii)(III) Strike the section in its 
     entirety and add the following: ``A system of graduated 
     sanctions for underage youths who possess, purchase or 
     attempt to purchase tobacco products, the sanction for the 
     first offense shall be no less than a requirement of 
     community service and the sanction for the second offense 
     shall be no less than a requirement of community service or a 
     fine.''
       (2) Sec. 232. Add the following:
       Sec. 232(b)(3) have a law that provides for a system of 
     graduated sanctions for underage youths who possess, purchase 
     or attempt to purchase tobacco products, the sanction for the 
     first offense shall be no less than a requirement of 
     community service and the sanction for the second offense 
     shall be no less than a requirement of community service or a 
     fine.''
       (3) Title II, Subtitle C, Sec. 261 add the following:
       Sec. 1981A(4) A state receiving or expending, or if any of 
     the state's agencies receives or expends, under this subtitle 
     funds from the Tobacco Settlement Trust Fund, that state 
     shall establish to the Secretary that it has laws or 
     regulations that include such measures as fines, suspension 
     of driver's license privileges, or community service 
     requirements, for underage youths who possess, purchase or 
     attempt to purchase tobacco products.
                                  ____


                           Amendment No. 2532

       Title II, Subtitle B, Sec. 231. State Retail Licensing and 
     Enforcement Block Grants. Add the following:
       Sec. 231(a) After ``to carry out the provisions of this 
     section.'' add the following: $100,000,000 of the annual 
     appropriation shall be used for block grants to state and 
     local law enforcement agencies to assist in providing the 
     resources necessary for law enforcement to enforce sanctions 
     on underage youths who possess, purchase or attempt to 
     purchase tobacco products and enforce the remaining 
     provisions of this title.
                                 ______
                                 

                    SHELBY AMENDMENTS NOS. 2533-2534

  (Ordered to lie on the table.)
  Mr. SHELBY submitted two amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2533

       On page 441, line 5, insert before the period the 
     following: ``, including the success of the claimant in prior 
     related litigation that contributed materially and directly 
     to the result obtained''.
                                  ____


                           Amendment No. 2534

       On page 440, line 25, insert before the period the 
     following: ``, both in the litigation in which the award is 
     sought, and to the extent, if any, that the result of such 
     litigation has the effect of making available documentary 
     evidence that materially and directly contributes to a 
     successful result in other pending or subsequent litigation 
     involving the same or similar issues involving different 
     litigants''.
                                 ______
                                 

                    HATCH AMENDMENTS NOS. 2535-2539

  (Ordered to lie on the table.)
  Mr. HATCH submitted five amendments intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

                           Amendment No. 2535

       On page 58, strike lines 8 through 23, and insert the 
     following:
       ``(3) Procedure for general prohibition of tobacco products 
     and elimination of nicotine.--
       ``(A) Nondelegation.--The Secretary may not delegate the 
     authority provided under this section to promulgate a 
     regulation that results in a general prohibition of 
     cigarettes or smokeless tobacco or the reduction of nicotine 
     yields of a tobacco product to zero.
       ``(B) Congressional review.--In accordance with section 801 
     of title 5, United States Code, Congress shall review, and 
     may disapprove, any rule of the Secretary establishing, 
     amending, or revoking a tobacco product health risk reduction 
     standard, except that with respect to a standard that results 
     in a general prohibition of cigarettes or smokeless tobacco 
     or the reduction of nicotine yields of a tobacco product to 
     zero, such standard shall only take effect following the date 
     of enactment of a joint resolution of approval of such 
     standard. The provisions of section 802 of title 5, United 
     States Code, relating to certain disapproval resolutions 
     shall apply to the consideration of any joint resolution of 
     approval under this subsection.
                                  ____


                           Amendment No. 2536

       On page 28, between lines 2 and 3, insert the following:
       ``(d) Application of FDA Rule.--The provisions of the final 
     regulations promulgated by the Secretary in the rule dated 
     August 28, 1996 (61 Fed. Reg. 44615-18) shall be given effect 
     as follows:
       ``(1)(A) The regulations codified in sections 897.1, 897.2, 
     897.3, 897.10, 897.12, 897.14, and 897.16(b) through (d) of 
     title 21, Code of Federal Regulations, shall be deemed to 
     have been promulgated by the Secretary pursuant to chapter IX 
     of the Federal Food, Drug and Cosmetic Act (as added by 
     section 103 of this Act).
       ``(B) The Secretary shall promulgate a regulation under 
     section 701(a) of the Federal Food, Drug and Cosmetic Act 
     to--
       ``(i) transfer the regulations referred to in subparagraph 
     (A) to the appropriate part of the Code of Federal 
     Regulations; and
       ``(ii) make such other amendments to such regulations if 
     the Secretary determines that such amendments are necessary 
     to conform such regulations to the provisions of this Act.
       ``(2) Any portion or provision of the final regulations not 
     specifically referred to in paragraph (1) shall be considered 
     null and void.
                                  ____


                           Amendment No. 2537

       Beginning on page 67, strike line 4 and all that follows 
     through line 6 on page 79.
                                  ____


                           Amendment No. 2538

       Beginning on page 42, strike line 10 and all that follows 
     through line 20 on page 43.
                                  ____


                           Amendment No. 2539

       On page 52, strike lines 3 through 16, and insert the 
     following:
       ``(a) Performance Standards.--
       ``(1) Adoption.--
       ``(A) In general.--Within 24 months after the date of 
     enactment of this chapter, the Secretary, in accordance with 
     the regulatory policies and principles set forth in Executive 
     Order No. 12866 (including the policies and principles set 
     forth in the January 11, 1996 Office of Management and Budget 
     guidance document entitled, `Economic Analysis of Federal 
     Regulations Under Executive Order 12866'), shall adopt 
     performance standards for tobacco products that maximize the 
     net benefits to the public health.
       ``(B) Objective.--Performance standards under subparagraph 
     (A) shall have as their major objective reducing the overall 
     health risks to the public. Such performance standards shall 
     take into account--
       ``(i) the increased or decreased likelihood that existing 
     consumers of tobacco products will stop using such products;
       ``(ii) the increased or decreased risk of likelihood that 
     existing users of tobacco products will reduce their use of 
     such products; and
       ``(iii) the increased or decreased likelihood that those 
     who do not use tobacco products will start using such 
     products.

       ``(C) Considerations.--In establishing performance 
     standards under subparagraph (A), the Secretary shall 
     identify, make available for public comment, and consider 
     relevant factors including the following:
       ``(i) Whether the proposed standard will result in a 
     reduction in the health risks associated with the use of the 
     tobacco product, constituent, or component.
       ``(ii) Whether the proposed standards will result in a 
     significant increase in the number of individuals seeking 
     tobacco product cessation or withdrawal treatments, including 
     an assessment of the effectiveness, availability, and 
     accessibility of such treatments.
       ``(iii) Whether the proposed standard will result in any 
     possible countervailing effects on the health of adolescent 
     tobacco users, adult tobacco users, or nontobacco users, such 
     as the creation of a significant demand for, and supply of, 
     contraband tobacco products specifically including increased 
     consumption of tobacco products that do not meet the 
     requirements of this chapter.
       ``(iv) Whether the proposed standard is technologically 
     feasible for commercial manufacturing.
       ``(v) Whether the proposed standard is likely to be 
     accepted by and affordable to adult consumers of tobacco 
     products.
     Nothing in this subparagraph shall be construed as requiring 
     the Secretary to make a finding on each of the individual 
     considerations described in this subparagraph. The issuance 
     of performance standards requires the balancing of many 
     considerations and other factors and performance standards 
     shall not be invalidated solely on the basis of the 
     Secretary's evaluation of any of the individual 
     considerations described in this subparagraph.
       ``(2) Technical provision.--In implementing this Act, any 
     reference to `appropriate for the protection of public 
     health' in this section, and sections 906(d)(1) and 910, 
     shall be deemed to be a reference to `maximize the net 
     benefits to the public health'.

[[Page S5728]]

                                 ______
                                 

                        DODD AMENDMENT NO. 2540

  (Ordered to lie on the table.)
       At the end of section 452, add the following:
       (____) Assistance for Children.--A State shall use not less 
     than $1,250,000,000 of the amount described in subsection 
     (b)(2) for each fiscal year to carry out activities under the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858 et seq.).
                                 ______
                                 

                 KERRY (AND OTHERS) AMENDMENT NO. 2541

  (Ordered to lie on the table.)
  Mr. KERRY (for himself, Mr. Chafee, Mr. Campbell, Mr. Kennedy, Mr. 
Dodd, Mr. Wellstone, Mr. Johnson, Mrs. Boxer, Mr. Specter, Ms. 
Landrieu, Mr. Durbin, and Mr. Graham) submitted an amendment intended 
to be proposed by them to the bill, S. 1415, supra; as follows:

       At the End of Section 452, add the following:
       (____) Assistance for Children.--A State shall use not less 
     than 50 percent of the amount described in subsection (b)(2) 
     for each fiscal year to carry out activities under the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 
     et seq.).
                                 ______
                                 

               JEFFORDS (AND BINGAMAN) AMENDMENT NO. 2542

  (Ordered to lie on the table.)
  Mr. JEFFORDS (for himself and Mr. Bingaman) submitted an amendment 
intended to be proposed by them to the bill, S. 1415, supra; as 
follows:

       On page 159, line 8, strike ``such sums as may be 
     necessary'' and all that follows through line 11, and insert 
     ``not less than 5 percent of such funds in fiscal year 1999, 
     10 percent of such funds in fiscal year 2000, 15 percent of 
     such funds in fiscal year 2001, and 20 percent of such funds 
     in fiscal year 2002 and each subsequent fiscal year, shall be 
     used to expand existing support for epidemiological, 
     behavioral, psychopharmacological, psychobiological, 
     psychophysiological, health services and social science 
     research related to the prevention and treatment of tobacco 
     addiction. Research described in this paragraph shall include 
     research on the effect of nicotine on the brain and 
     behavior.''.
       On page 159, line 13, strike ``may'' and insert ``shall''.
       On page 160, line 18, strike ``may'' and insert ``shall''.
       On page 161, between lines 15 and 16, insert the following:
       ``(h) Research and Collaboration.--The Director may conduct 
     and support neurobiological, biomedical, biochemical, or 
     other biological research related to tobacco addiction, and 
     shall encourage collaboration between such research and 
     research conducted under subsection (c), except that research 
     described in this subsection shall not be included in 
     determining whether the requirement of subsection (c) has 
     been satisfied with respect to a fiscal year.''.
                                 ______
                                 

                      JEFFORDS AMENDMENT NO. 2543

  (Ordered to lie on the table.)
  Mr. JEFFORDS submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       On page 194, line 8, add after the period the following: 
     ``Each agency authorized to receive funds under this 
     subsection shall consult with the committees of the House or 
     Representatives and the Senate with jurisdiction over each 
     such agency to establish, consistent with the Government 
     Performance and Responsibility Act of 1993--
       ``(A) goals and performance measures for activities under 
     this Act within the jurisdiction of each such agency; and
       ``(B) annual financial accountings of the allocation and 
     expenditure of funds appropriated to each such agency as 
     authorized under this subsection.''.
       On page 194, line 10, add after ``be'' the following: 
     ``authorized to be appropriated for each of the fiscal years 
     1999 through 2008, and such authorization shall expire after 
     such period. Such amounts shall be''.
       On page 197, line 8, add after the period the following: 
     ``Each agency authorized to receive funds under this 
     subsection shall consult with the committees of the House or 
     Representatives and the Senate with jurisdiction over each 
     such agency to establish, consistent with the Government 
     Performance and Responsibility Act of 1993--
       ``(A) goals and performance measures for activities under 
     this Act within the jurisdiction of each such agency; and
       ``(B) annual financial accountings of the allocation and 
     expenditure of funds appropriated to each such agency as 
     authorized under this subsection.''.
       On page 197, line 11, add after ``be'' the following: 
     ``authorized to be appropriated for each of the fiscal years 
     1999 through 2008, and such authorization shall expire after 
     such period. Such amounts shall be''.
                                 ______
                                 

                   ASHCROFT AMENDMENTS NOS. 2544-2553

  (Ordered to lie on the table.)
  Mr. ASHCROFT submitted 10 amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

                           Amendment No. 2544

       In section 452, beginning on page 200, strike line 8 and 
     all after, through page 202, line 14.
                                  ____


                           Amendment No. 2545

       Strike lines 7-11, page 161.
                                  ____


                           Amendment No. 2546

       Strike lines 1-5, page 154.
                                  ____


                           Amendment No. 2547

       Strike lines 14-20, page 196.
                                  ____


                           Amendment No. 2548

       Strike section 1107.
                                  ____


                           Amendment No. 2549

       Strike section 1104.
                                  ____


                           Amendment No. 2550

       Strike section 405.
                                  ____


                           Amendment No. 2551

       On page 180, line 10, after the period add the following: 
     ``Amounts credited to the Trust fund under subsection (b) may 
     be used to fund anti-illegal drug programs in States and 
     other programs that target illegal drugs.''.
                                  ____


                           Amendment No. 2552

       At the appropriate place, insert the following:

     SEC. ____. METHAMPHETAMINE PENALTY INCREASES.

       (a) Controlled Substances Act.--Section 401(b)(1) of the 
     Controlled Substances Act (21 U.S.C. 841(b)(1)) is amended--
       (1) in subparagraph (A)(viii)--
       (A) by striking ``100 grams'' and inserting ``50 grams''; 
     and
       (B) by striking ``1 kilogram'' and inserting ``500 grams''; 
     and
       (2) in subparagraph (B)(viii)--
       (A) by striking ``10 grams'' and inserting ``5 grams''; and
       (B) by striking ``100 grams'' and inserting ``50 grams''.
       (b) Controlled Substances Import and Export Act.--Section 
     1010(b) of the Controlled Substances Import and Export Act 
     (21 U.S.C. 960(b)) is amended--
       (1) in paragraph (1)(H)--
       (A) by striking ``100 grams'' and inserting ``50 grams''; 
     and
       (B) by striking ``1 kilogram'' and inserting ``500 grams''; 
     and
       (2) in paragraph (2)(H)--
       (A) by striking ``10 grams'' and inserting ``5 grams''; and
       (B) by striking ``100 grams'' and inserting ``50 grams''.
                                  ____


                           Amendment No. 2553

       On page ______, strike lines ____ through ____, and insert 
     the following:

     SEC. ______. MODIFICATION OF SYNAR AMENDMENT.

       Section 1926 of the Public Health Service Act (42 U.S.C. 
     300x-26) is amended--
       (1) in subsection (a)(1), to read as follows:
       ``(1) In general.--Subject to paragraph (2), for fiscal 
     year 1999 and subsequent fiscal years, the Secretary may make 
     a grant under section 1921 only if the State involved has in 
     effect a law providing that it is unlawful for--
       ``(A) any manufacturer, retailer, or distributor of tobacco 
     products, or for any individual to sell or distribute any 
     such product to any individual under the age of 18; and
       ``(B) any individual under the age of 18 to purchase or 
     possess any such product.''; and
       (2) in subsection (b)(1), by adding at the end the 
     following: ``In enforcing such law the State shall ensure 
     that penalties for violations of such law are at least as 
     stringent as penalties applied for the illegal distribution 
     or possession of alcohol to or by minors.''.

     SEC. ______. INCREASED PENALTIES FOR DRUG OFFENSES INVOLVING 
                   MINORS.

       (a) Increased Penalties for Distributing Drugs to Minors.--
     Section 418 of the Controlled Substances Act (21 U.S.C. 859) 
     is amended--
       (1) in subsection (a), by striking ``one year'' and 
     inserting ``10 years''; and
       (2) in subsection (b), by striking ``one year'' and 
     inserting ``20 years''.
       (b) Increased Penalty for Drug Trafficking in or Near a 
     School or Other Protected Location.--Section 419 of the 
     Controlled Substances Act (21 U.S.C. 860) is amended--
       (1) in subsection (a), by striking ``one year'' and 
     inserting ``10 years''; and
       (2) in subsection (b), by striking ``three years'' each 
     place that term appears and inserting ``20 years''.
       (c) Increased Penalties for Using Minors To Distribute 
     Drugs.--Section 420 of the Controlled Substances Act (21 
     U.S.C. 861) is amended--
       (1) in subsection (b), by striking ``one year'' and 
     inserting ``10 years''; and
       (2) in subsection (c), by striking ``one year'' and 
     inserting ``20 years''.

     SEC. ____. DISTRICT OF COLUMBIA.

       (a) Increased Penalties for Sale to Minors.--Section 1120 
     of title 22 of the District of Columbia Code is amended by 
     striking subsection (d) and inserting the following:
       ``(d)(1) Upon finding that a licensee has violated 
     subsection (a) or (b) of this section, the Mayor shall--
       ``(A) on the first violation, fine the licensee not less 
     than $1,000 and not more than $2,000,

[[Page S5729]]

     or suspend the license for 10 consecutive days;
       ``(B) on the second violation, fine the licensee not less 
     than $2,000 and not more than $4,000 and suspend the license 
     for 20 consecutive days; and
       ``(C) on the third violation and each subsequent violation, 
     fine the licensee not less than $4,000 and not more than 
     $10,000 and suspend the license for 30 consecutive days, or 
     revoke the license.
       ``(2) In the event of revocation or suspension of the 
     license pursuant to this subsection the Mayor shall post a 
     notice in a conspicuous place on the exterior of the premises 
     stating the reason for the revocation or suspension. The 
     notice shall remain posted through the prescribed dates. The 
     licensee shall immediately notify the Mayor if the notice is 
     removed or defaced. Failure of the licensee to notify the 
     Mayor may result in the extension of the prescribed period of 
     revocation or suspension.''.
       (b) Penalties for Purchase by Minors.--Section 1120 of 
     title 22 of the District of Columbia Code is amended--
       (1) in the caption, by inserting ``or purchase of tobacco 
     by'' after ``to''; and
       (2) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a)''; and
       (B) by adding at the end the following:
       ``(2)(A) No person who is under 18 years of age shall 
     possess or purchase any cigarette or other tobacco product.
       ``(B)(i) Any person under 21 years of age who falsely 
     represents his or her age for the purpose of procuring a 
     cigarette or other tobacco product shall be deemed guilty of 
     a misdemeanor and be fined not more than $300 for each 
     offense, and in default in the payment of the fine shall be 
     imprisoned for not longer than 30 days.
       ``(ii) A civil fine may be imposed as an alternative 
     sanction for any infraction of this subsection, or any rules 
     or regulations issued under the authority of this subsection, 
     pursuant to sections 6-2701 to 6-2723 (``Civil Infractions 
     Act''). Adjudication of any infraction of this section shall 
     be pursuant to sections 6-2701 to 6-2723.
       ``(C) In addition to the penalties provided in subparagraph 
     (B), any person who violates any provision of this subsection 
     shall be subject to the following additional penalties:
       ``(i) Upon the first violation, shall have his or her 
     driving privileges in the District suspended for a period of 
     90 consecutive days.
       ``(ii) Upon the second violation, shall have his or her 
     driving privileges in the District suspended for a period of 
     180 days.
       ``(iii) Upon the third violation and each subsequent 
     violation, shall have his or her driving privileges in the 
     District suspended for a period of 1 year.''.
                                 ______
                                 

                       McCAIN AMENDMENT NO. 2554

  (Ordered to lie on the table.)
  Mr. McCAIN submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       On page 106, strike lines 7 through 11, and insert the 
     following:
       (3) Survey methodology scope of review.--A survey using the 
     methodology required by this subsection shall be subject to 
     judicial review only by the United States Court of Appeals 
     for the District of Columbia Circuit, based on the standard 
     set forth in section 706(2)(A) of title 5, United States 
     Code.
       On page 188, line 4, strike ``ADJUSTMENTS.'' and insert 
     ``ADJUSTMENTS; LIMITATIONS.''.
       On page 188, line 5, strike ``The'' and insert ``(a) In 
     General.--The''.
       On page 188, strike line 8.
       On page 188, move the matter appearing in lines 9 through 
     22 2 ems to the left.
       On page 188, line 9, strike ``(A) In general.--Beginning'' 
     and insert ``(1) Adjustment.--Beginning''.
       On page 188, beginning in line 15, strike ``CPI, adjusted 
     (for calendar year 2002 and later years) by the volume 
     adjustment under paragraph (2).'' and insert ``CPI.''.
       On page 188, line 18, strike ``(B)'' and insert ``(2)''.
       On page 188, beginning in line 18, strike ``subparagraph 
     (A),'' and insert ``paragraph (1),''.
       On page 188, beginning with line 23, strike through line 16 
     on page 189 and insert the following:
       (b) Limitation Based on Annual Increase in Price-per-
     pack.--Notwithstanding the amount set forth in paragraph (1), 
     (2), (3), (4) or (5) of section 402(b) and the amount 
     determined under paragraph (6) of that section, the amount of 
     the payment required under section 402(b) for any calendar 
     year from cigarette manufacturers shall not exceed an amount 
     which, when divided by the number of packs of cigarettes sold 
     during the calendar year, will be equal to--
       (1) 65 cents in year 1;
       (2) 70 cents in year 2;
       (3) 80 cents in year 3;
       (4) $1.00 in year 4; or
       (5) $1.10 in year 5 and thereafter.
       (c) Price-per-pack Limitation Applies to Smokeless Tobacco 
     Products.--Under regulations prescribed by the Secretary, the 
     price-per-pack limitation set forth in subsection (b) shall 
     be applied to units of smokeless tobacco at equivalent per-
     unit prices, taking into account applicable ad valorem taxes.
       (d) Adjustment.--Beginning with the second calendar year 
     after the date of enactment of this Act, the amounts set 
     forth in subsection (b) shall be adjusted as provided in 
     subsection (a)(1).
                                 ______
                                 

                       STEVENS AMENDMENT NO. 2555

  (Ordered to lie on the table.)
  Mr. STEVENS submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       On page 20, line 21, strike ``and includes'' and insert in 
     lieu thereof ``and, except for the purposes of carrying out 
     this Act in Alaska, also includes''.
       On page 220, strike lines 16 and 17 and insert in lieu 
     therof, ``modifying it to address population factors, land 
     base factors, and, except in Alaska, jurisdiction factors.''.
       On page 224, line 8, immediately after the word ``Act'' 
     insert ``, except that regional health entities (as that term 
     is used in section 325 of Public Law 105-83) shall be the 
     only entities eligible to receive such grants in Alaska under 
     this paragraph.''.
       On page 224, line 13, insert immediately before the period 
     ``and, in Alaska, such regional health entities shall be 
     required to utilize such grants, to the maximum extent 
     possible, to support programs operated by community health 
     aides within the service populations of such entities''.
       On page 224, line 18, strike ``smoking'' and insert in lieu 
     thereof ``tobacco use''.
       On page 225, strike lines 14-22 and insert in lieu thereof:
       (C) Use of health care funds.--Amounts made available to 
     the Indian Health Service under this paragraph shall be--
       (I) made available to Indian tribes pursuant to the 
     provisions of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b et seq.), except in Alaska 
     where such amounts shall, notwithstanding any other provision 
     of law, be made available pursuant to such Act only to the 
     Consortium (as that term is used in section 325 of Public Law 
     105-83) which shall be eligible to enter into contracts, 
     compacts, or other funding agreements under such Act without 
     further resolutions of the Regional Corporations, Village 
     Corporations, tribes and/or villages represented by the 
     members of the Consortium; and
       (II) used to reduce tobacco consumption, promote smoking 
     cessation, and to fund health care activities, including--
       On page 225, line 23, strike ``(i)'' and insert in lieu 
     thereof ``(I)''.
       On page 226, line 1, strike ``(ii)'' and insert in lieu 
     thereof ``(II)''.
       On page 226, line 3, strike ``(iii)'' and insert in lieu 
     thereof ``(III)''.
       On page 226, line 6, strike ``(iv)'' and insert in lieu 
     thereof ``(IV)''.
       On page 226, line 8, strike ``(v)'' and insert in lieu 
     thereof ``(V)''.
                                 ______
                                 

                       INOUYE AMENDMENT NO. 2556

  (Ordered to lie on the table.)
  Mr. INOUYE submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       On page 402, strike lines 15-25 and insert in lieu thereof 
     the following:
       If the Congress enacts legislation to provide for the 
     payment of asbestos claims, then unobligated amounts in the 
     National Tobacco Trust Fund established by title IV of this 
     Act may be made available, as provided by appropriations Act, 
     to make those payments.
                                 ______
                                 

                        MACK AMENDMENT NO. 2557

  (Ordered to lie on the table.)
  Mr. MACK submitted an amendment intended to be proposed by him to the 
bill, S. 1415, supra; as follows:

       On page 210, between lines 18 and 19, insert the following:

     SEC. 456. STATE SETTLEMENTS.

       (a) In General.--Notwithstanding any other provision of 
     law, or of this Act, amounts received by a State as a result 
     of the resolution by such State of tobacco-related civil 
     actions through settlement or court judgment with tobacco 
     product manufacturers shall not be available to the Secretary 
     as reimbursement of Medicaid expenditures or considered as 
     Medicaid overpayments for purposes of recoupment.
                                 ______
                                 

             HUTCHISON (AND MACK) AMENDMENTS NOS. 2558-2559

  (Ordered to lie on the table.)
  Mrs. HUTCHISON (for herself and Mr. Mack) submitted two amendments 
intended to be proposed by them to the bill, S. 1415, supra; as 
follows:

                           Amendment No. 2558

       On page 210, between lines 18 and 19, insert the following:

     SEC. 456. NO REDUCTION OF STATE FUNDS.

       Notwithstanding any other provision of this Act, payments 
     under this Act to a State that, as of the date of enactment 
     of this Act, has resolved tobacco-related civil actions 
     through settlement or court judgment with tobacco product 
     manufacturers, shall not be less than the State would have 
     otherwise received under the State settlement or judgment.
                                  ____


                           Amendment No. 2559

       On page 210, between lines 18 and 19, insert the following:

[[Page S5730]]

     SEC. 456. STATE OPT-IN.

       (a) In General.--A State that, as of the date of enactment 
     of this Act, has resolved tobacco-related civil actions 
     through settlement or court judgment with tobacco product 
     manufacturers, shall not be eligible to receive funds under 
     section 452 unless the State provides notice in writing to 
     the Secretary affirmatively electing to receive such funds 
     and comply with the requirements of such section.
                                 ______
                                 

                  HUTCHISON AMENDMENTS NOS. 2560-2561

  (Ordered to lie on the table.)
  Mrs. HUTCHISON submitted two amendments intended to be proposed by 
her to the bill, S. 1415, supra; as follows:

                           Amendment No. 2560

       On page 210, between lines 18 and 19, insert the following:

     SEC. 456. STATE SETTLEMENTS.

       (a) In General.--Notwithstanding any other provision of 
     law, or of this Act, amounts received by a State as a result 
     of the resolution by such State of tobacco-related civil 
     actions through settlement or court judgment with tobacco 
     product manufacturers shall not be available to the Secretary 
     as reimbursement of Medicaid expenditures or considered as 
     Medicaid overpayments for purposes of recoupment.
       (b) Use of Funds.--Amounts received by a State under a 
     settlement described in subsection (a) may be used in any 
     manner that the State determines appropriate, consistent with 
     State law.
                                  ____


                           Amendment No. 2561

       On page 442, between lines 4 and 5, insert the following:
       (d) Offset of State Liability for Fees.--In the case of a 
     State that has pursued an independent civil action against 
     tobacco product manufacturers, and that may be liable for 
     attorneys fees, the total amount of any determination of 
     attorneys fees to be paid by such manufacturers through 
     arbitration under this section shall be applied as a dollar-
     for-dollar offset against any potential State liability for 
     attorneys fees.
                                 ______
                                 

                  TORRICELLI AMENDMENTS NOS. 2562-2563

  (Ordered to lie on the table.)
  Mrs. TORRICELLI submitted two amendments intended to be proposed by 
him to the bill, S. 1415, supra; as follows:

                           Amendment No. 2562

       At the appropriate place, insert the following:

     SEC. ____. MICHAEL GILLICK CHILDHOOD CANCER RESEARCH STUDY.

       (a) Findings.--Congress finds that--
       (1) during the period from 1979 to 1995, Ocean County, New 
     Jersey, had a significantly higher rate of childhood brain 
     cancer than the rest of the United States, including a rate 
     of brain and central nervous system cancer that was nearly 75 
     percent above the rate of other States;
       (2) during the period from 1979 to 1995--
       (A) there were 350 cases of childhood cancer in Ocean 
     County, of which 90 cases were in Dover Township, and of 
     those 24 were in Toms River alone;
       (B) the rate of brain and central nervous system cancer of 
     children under 20 in Toms River was nearly 3 times higher 
     than expected, and among children under 5 was 7 times higher 
     than expected; and
       (C) Dover Township, which would have had a nearly normal 
     cancer rate if Toms River were excluded, had a 1.3 times 
     higher cancer rate than the rest of the State and an 1.5 
     times higher leukemia rate than the rest of the State; and
       (3)(A) according to New Jersey State cancer registry data 
     from 1979 to 1995, a population the size of Toms River should 
     have 14 children under age 20 with cancer; and
       (B) Toms River currently has 24 children under the age of 
     20 with cancer.
       (b) Study.--Section 104(i) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9604(i)) is amended by adding at the end the 
     following:
       ``(19) Michael gillick childhood cancer research study.--
       ``(A) In general.--The Administrator of ATSDR shall conduct 
     dose-reconstruction modeling and an epidemiological study of 
     childhood cancer in Dover Township, New Jersey.
       ``(B) Grant to the state of new jersey.--The Administrator 
     of ATSDR may make 1 or more grants to the State of New Jersey 
     to carry out paragraph (1).
       ``(C) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph--
       ``(i) $2,000,000 for fiscal year 1999; and
       ``(ii) $1,000,000 for fiscal year 2000.''.
                                  ____


                           Amendment No. 2563

       On page 201, between lines 19 and 20, insert the following:
       (3) Medicaid children's enrollment performance bonus.--
       (A) Set aside of funds.--Notwithstanding the preceding 
     paragraphs of this subsection, 8 percent of the amount 
     received under this section in a fiscal year shall not be 
     used by a State unless the State satisfies the requirements 
     of subparagraphs (B) and (C).
       (B) Demonstration of implementation of outreach 
     strategies.--A State shall demonstrate to the satisfaction of 
     the Secretary that the State has a commitment to reach and 
     enroll children who are eligible for but not enrolled under 
     the State plan through effective implementation of each of 
     the following outreach activities:
       (i) Streamlined eligibility procedures.--

       (I) In general.--The State uses streamlined procedures 
     described in subclause (II) for determining the eligibility 
     for medical assistance of, and enrollment in the State plan 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.) of--

       (aa) children in families with incomes that do not exceed 
     the effective income level (expressed as a percent of the 
     poverty line) that has been specified under such State plan 
     (including under a waiver authorized by the Secretary or 
     under section 1902(r)(2) of such Act (42 U.S.C. 1396a(r)(2))) 
     for the child to be eligible for medical assistance under 
     section 1902(l)(2) or 1905(n)(2) (as selected by a State) of 
     such Act (42 U.S.C. 1396a(l)(2), 1396d(n)(2)) for the age of 
     such child; and
       (bb) children determined eligible for such assistance, and 
     enrolled in the State plan under title XIX of the Social 
     Security Act, in accordance with the requirements of 
     paragraphs (1) and (2) of section 1931(b) of such Act (42 
     U.S.C. 1396u-1(b)).

       (II) Procedures described.--The streamlined procedures 
     described in this subclause include--

       (aa) using shortened and simplified applications for the 
     children described in subclause (I);
       (bb) eliminating the assets test for determining the 
     eligibility of such children; and
       (cc) allowing applications for such children to be 
     submitted by mail or telephone.
       (ii) Continuous eligibility for children.--The State 
     provides (or demonstrates to the satisfaction of the 
     Secretary that, not later than fiscal year 2001, the State 
     shall provide) for 12-months of continuous eligibility for 
     children in accordance with section 1902(e)(12) of the Social 
     Security Act (42 U.S.C. 1396a(e)(12)).
       (iii) Presumptive eligibility for children.--The State 
     provides (or demonstrates to the satisfaction of the 
     Secretary that, not later than fiscal year 2001, the State 
     shall provide) for making medical assistance available to 
     children during a presumptive eligibility period in 
     accordance with section 1920A of the Social Security Act (42 
     U.S.C. 1396r-1a).
       (iv) Outstationing and alternative applications.--The State 
     complies with the requirements of section 1902(a)(55) of the 
     Social Security Act (42 U.S.C. 1396a(a)(55)) (relating to 
     outstationing of eligibility workers for the receipt and 
     initial processing of applications for medical assistance and 
     the use of alternative application forms).
       (v) Simplified verification of eligibility requirements.--
     The State demonstrates to the satisfaction of the Secretary 
     that the State uses only the minimum level of verification 
     requirements as are necessary for the State to ensure 
     accurate eligibility determinations under the State plan 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.).
       (C) Report on number of enrollments resulting from 
     outreach.--A State shall annually report to the Secretary on 
     the number of full year equivalent children that are 
     determined to be eligible for medical assistance under the 
     State plan under title XIX of the Social Security Act and are 
     enrolled under the plan as a result of--
       (i) having been provided presumptive eligibility in 
     accordance with section 1920A of such Act (42 U.S.C. 1396r-
     1a);
       (ii) having submitted an application for such assistance 
     through an outstationed eligibility worker; and
       (iii) having submitted an application for such assistance 
     by mail or telephone.
       (D) Procedure for redistribution of unused set asides.--The 
     Secretary shall determine an appropriate procedure for the 
     redistribution of funds set aside under this paragraph for a 
     State for a fiscal year that are not used by the State during 
     that fiscal year because the State did not satisfy the 
     requirements of subparagraphs (B) and (C) to States that have 
     satisfied such requirements for such fiscal year and have 
     fully expended the amount of State funds so set aside.
       (E) Offset of federal expenditures.--The amount allocated 
     to the State Litigation Settlement Account for a fiscal year 
     shall, in addition to any reductions required under the third 
     sentence of section 451(a), be further reduced by the 
     additional estimated Federal expenditures that will be 
     incurred as a result of increased State expenditures 
     resulting from the application of this paragraph.
       (F) Application of restriction on substitution of 
     spending.--The provisions of subsection (c) of this section 
     apply to this paragraph in the same manner and to the same 
     extent as such provisions apply to the program described in 
     paragraph (2)(G) of this subsection.
                                 ______
                                 

                    WARNER AMENDMENTS NOS. 2564-2566

  (Ordered to lie on the table.)
  Mr. WARNER submitted three amendments intended to be proposed by him 
to the bill, S. 1415, supra; as follows:

[[Page S5731]]

                           Amendment No. 2564

       Strike Section 1031.
                                  ____


                           Amendment No. 2565

       Strike Title II.
                                  ____


                           Amendment No. 2566

       Strike Subtitle A of Title XI.
                                 ______
                                 

                      JEFFORDS AMENDMENT NO. 2567

  (Ordered to lie on the table.)
  Mr. JEFFORDS submitted an amendment intended to be proposed by him to 
the bill, S. 1415, supra; as follows:

       On page 198, strike lines 3 through 10 and insert the 
     following: ``added by this Act, authorized under sections 
     2803 of that Act, as so added. Of the total amounts allocated 
     to this account, not less than 12 percent, but not more than 
     18 percent shall be used for this purpose.
       (D) Agency for Health Care Policy and Research under 
     section 1991E of the Public Health Service Act, as added by 
     this Act. Of the total amounts allocated to this account, not 
     less than 1 percent, but not more than 3 percent shall be 
     used for this purpose.''.

                          ____________________