[Congressional Record Volume 144, Number 75 (Thursday, June 11, 1998)]
[Senate]
[Pages S6253-S6256]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        NATIONAL TOBACCO POLICY AND YOUTH SMOKING REDUCTION ACT

                                 ______
                                 

                    KERREY AMENDMENTS NOS. 2699-2700

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

                           Amendment No. 2699

         At the end of subtitle D of title XV, add the following:

[[Page S6254]]

     SEC. 1563. 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.
                                  ____


                           Amendment No. 2700

       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.
       (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;

[[Page S6255]]

       (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
       (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.

[[Page S6256]]

       (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. SAVINGS.

       Any savings derived as a result of this title shall be used 
     for tobacco use prevention and cessation initiatives.
                                 ______
                                 

               FAIRCLOTH (AND OTHERS) AMENDMENT NO. 2701

  (Ordered to lie on the table.)
  Mr. FAIRCLOTH (for himself, Mr. Sessions, Mr. McConnell, and Mr. 
Gramm) proposed an amendment to amendment No. 2437 proposed by Mr. 
Durbin to the bill, S. 1415, as follows:

       At the appropriate place, insert the following:

     SEC.   . ATTORNEYS' FEES AND EXPENSES.

       (a) Fee Arrangements.--Subsection (c) shall apply to 
     attorneys' fees provided for or in connection with an action 
     of the type described in such subsection 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) Application.--This section shall apply to all fees paid 
     or to be paid to attorneys under any arrangement described in 
     subsection (a)--
       (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 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 
     companies to recover tobacco-related 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 
     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 
     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;
       (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) of this 
     subsection; or
       (11) who act at some future time on behalf of a defendant 
     in any of the matters set forth in paragraphs (1) through (9) 
     of this subsection.
       (c) Attorneys' Fees.
       (1) Jurisdiction.--The determination of attorneys' fees for 
     compensation subject to this section shall be within the 
     jurisdiction of--
       (A) the court in which the action for which the claimant 
     attorney is making a claim is pending; or
       (B) an arbitration panel selected by the parties or 
     otherwise selected by law.
       (2) Criteria.--In the determination of attorneys' fees 
     subject to this section, the court or arbitration panel shall 
     consider--
       (A) The likelihood at the commencement of the 
     representation that the claimant attorney would secure a 
     favorable judgment, a substantial settlement, or a successful 
     negotiation towards a global settlement agreement for 
     submission to the Congress;
       (B) The amount of time and labor that the claimant attorney 
     reasonably believed at the commencement of the representation 
     that he was likely to expend on the claim;
       (C) The amount of productive time and labor that the 
     claimant attorney actually invested in the representation as 
     determined through an examination of contemporaneous and 
     reconstructed time records;
       (D) The obligations undertaken by the claimant attorney at 
     the commencement of the representation including--
       (i) whether the claimant attorney was obligated to proceed 
     with the representation through its conclusion or was 
     permitted to withdraw from the representation; and
       (ii) whether the claimant attorney assumed an unconditional 
     commitment for expenses incurred pursuant to the 
     representation;
       (E) The expenses actually incurred by the claimant attorney 
     pursuant to the representation including--
       (i) whether those expenses were reimbursable; and
       (ii) the likelihood on each occasion that expenses were 
     advanced that the claimant attorney would secure a favorable 
     judgment or substantial settlement;
       (F) The novelty of the legal issues before the claimant 
     attorney and whether the legal work was innovative or modeled 
     after the work of others or prior work of the claimant 
     attorney;
       (G) The skill required for proper performance of the legal 
     services rendered;
       (H) The results obtained and whether those results were or 
     are appreciably better than the results obtained by other 
     lawyers representing comparable clients or similar claims;
       (I) Whether the original fee arrangement includes a fixed 
     or a percentage fee;
       (J) The reduced degree of risk borne by the claimant 
     attorney in the representation and the increased likelihood 
     that the claimant attorney would secure a favorable judgment 
     or substantial settlement based on a chronological 
     progression of relevant developments from the 1994 Williams 
     document disclosures to the settlement negotiations and the 
     subsequent Federal legislative process; and
       (K) Whether this Act or related changes to State laws 
     increase the likelihood of success in representations subject 
     to this section.
       (3) Limitation.--Notwithstanding any other provision of 
     law, any attorney's fees or expenses paid to attorneys for 
     matters subject to this section shall not exceed a per hour 
     rate of $1,000 in addition to 200 percent of actual out-of-
     pocket expenses for which detailed documentation has been 
     provided and which have been approved by the court or 
     arbitration panel in such action.
       (4) Records Requirement.--All records submitted to a court 
     or arbitration panel pursuant to this section shall be 
     available for public inspection and reproduction for a period 
     of one year from the date of adjudication of the attorneys' 
     fees.
       (d) 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 section to any 
     person or circumstance shall not be affected thereby.
                                 ______
                                 

                  REED (AND OTHERS) AMENDMENT NO. 2702

  Mr. REED (for himself, Mrs. Boxer, Mr. Wyden, Mr. Kennedy, Mr. 
Daschle, Mr. Durbin, Mr. Wellstone, Mrs. Feinstein, and Mr. Conrad) 
proposed an amendment to amendment No. 2437 proposed by Mr. Durbin to 
the bill, S. 1415, supra; as follows:

       At the appropriate place, insert the following:

     SEC. ____. DISALLOWANCE OF TAX DEDUCTIONS FOR ADVERTISING, 
                   PROMOTIONAL, AND MARKETING EXPENSES RELATING TO 
                   TOBACCO PRODUCT USE UNLESS CERTAIN ADVERTISING 
                   REQUIREMENTS ARE MET.

       (a) In General.--Part IX of subchapter B of chapter 1 of 
     subtitle A of the Internal Revenue Code of 1986 (relating to 
     items not deductible) is amended by adding at the end the 
     following:

     ``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR TOBACCO 
                   ADVERTISING, PROMOTIONAL, AND MARKETING 
                   EXPENSES UNLESS CERTAIN ADVERTISING 
                   REQUIREMENTS ARE MET.

       ``(a) In General.--No deduction shall be allowed under this 
     chapter for any taxable year for expenses relating to 
     advertising, promoting, or marketing cigars, cigarettes, 
     smokeless tobacco, pipe tobacco, roll-your-own tobacco, or 
     any similar tobacco product unless the taxpayer maintains 
     compliance during such year with the advertising and 
     marketing provisions of part 897 of title 21, Code of Federal 
     Regulations, that were published in the Federal Register on 
     August 28, 1996.
       ``(b) General Definitions.--For purposes of this section, 
     any term used in this section which is also used in section 
     5702 shall have the same meaning given such term by section 
     5702.''.
       (b) Conforming Amendment.--The table of sections for such 
     part IX is amended by adding after the item relating to 
     section 280H the following:

  ``Sec. 280I. Disallowance of deduction for tobacco advertising, 
              promotional, and marketing expenses unless certain 
              advertising requirements are met.''

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




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