[Congressional Record Volume 164, Number 108 (Wednesday, June 27, 2018)]
[Senate]
[Pages S4639-S4640]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3227. Mr. BLUMENTHAL submitted an amendment intended to be 
proposed to amendment SA 3224 proposed by Mr. Roberts (for himself and 
Ms. Stabenow) to the bill H.R. 2, to provide for the reform and 
continuation of agricultural and other programs of the Department of 
Agriculture through fiscal year 2023, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. STOP SUBSIDIZING CHILDHOOD OBESITY.

       (a) Findings.--Congress finds the following:
       (1) Childhood obesity has more than doubled in children and 
     tripled in adolescents in the past 30 years. Currently, more 
     than \1/3\ of children and adolescents in the United States 
     are overweight or obese.
       (2) A report by the Robert Wood Johnson Foundation and 
     Trust for America's Health found that if the population of 
     the United States continues on its current trajectory, adult 
     obesity rates could exceed 60 percent in a number of States 
     by 2030.
       (3) Health-related behaviors, such as eating habits and 
     physical activity patterns, develop early in life and affect 
     behavior and health in adulthood. The diets of American 
     children and adolescents depart substantially from 
     recommended patterns that put their health at risk. Overall, 
     American children and youth are not achieving basic 
     nutritional goals. They are consuming excess calories and 
     added sugars and have higher than recommended intakes of 
     sodium, total fat, and saturated fats.
       (4) According to a 2012 report from the Federal Trade 
     Commission, the total amount spent on food marketing to 
     children is about $2,000,000,000 per year.
       (5) Companies market food to children through television, 
     radio, Internet, magazines, product placement in movies and 
     video games, schools, product packages, toys, clothing and 
     other merchandise.
       (6) According to a comprehensive review by the National 
     Academy of Medicine, studies demonstrate that television food 
     advertising affects children's food choices, food purchase 
     requests, diets, and health. The Academy concluded that the 
     marketing of high-calorie foods to children and adolescents 
     is one of the major contributors to childhood obesity.
       (7) More than 80 percent of the food advertisements seen by 
     children on television are for foods of poor nutritional 
     value.
       (8) A study published in the Journal of Law and Economics 
     and funded by the National Institutes of Health found that 
     the elimination of the tax deduction that allows companies to 
     deduct costs associated with advertising food of poor 
     nutritional quality to children could reduce the rates of 
     childhood obesity by 5 to 7 percent.
       (9) A study published in the Journal of Health Affairs 
     found that the elimination of the tax deduction for costs 
     described in paragraph (8) would save up to $260,000,000 in 
     health care costs and prevent nearly 130,000 cases of 
     childhood obesity over 10 years.
       (b) Denial of Deduction for Advertising and Marketing 
     Directed at Children to Promote the Consumption of Food of 
     Poor Nutritional Quality.--
       (1) In general.--Part IX of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new section:

     ``SEC. 280I. DENIAL OF DEDUCTION FOR ADVERTISING AND 
                   MARKETING DIRECTED AT CHILDREN TO PROMOTE THE 
                   CONSUMPTION OF FOOD OF POOR NUTRITIONAL 
                   QUALITY.

       ``(a) In General.--No deduction shall be allowed under this 
     chapter with respect to--
       ``(1) any advertisement or marketing--
       ``(A) primarily directed at children for purposes of 
     promoting the consumption by children of any food of poor 
     nutritional quality, or
       ``(B) of a brand primarily associated with food of poor 
     nutritional quality that is primarily directed at children, 
     and
       ``(2) any of the following which are incurred or provided 
     primarily for purposes described in paragraph (1):
       ``(A) Travel expenses (including meals and lodging).
       ``(B) Goods or services of a type generally considered to 
     constitute entertainment, amusement, or recreation or the use 
     of a facility in connection with providing such goods and 
     services.
       ``(C) Gifts.
       ``(D) Other promotion expenses.
       ``(b) NAM Study.--
       ``(1) In general.--Not later than 60 days after the date of 
     the enactment of this section, the Secretary shall enter into 
     a contract with the National Academy of Medicine under which 
     the National Academy of Medicine shall develop procedures for 
     the evaluation and identification of--
       ``(A) food of poor nutritional quality, and
       ``(B) brands that are primarily associated with food of 
     poor nutritional quality.
       ``(2) NAM report.--Not later than 12 months after the date 
     of the enactment of this section, the National Academy of 
     Medicine shall submit to the Secretary a report that 
     establishes the proposed procedures described in paragraph 
     (1).
       ``(c) Definitions.--In this section:
       ``(1) Brand.--The term `brand' means a corporate or product 
     name, a business image,

[[Page S4640]]

     or a mark, regardless of whether it may legally qualify as a 
     trademark, used by a seller or manufacturer to identify goods 
     or services and to distinguish them from the goods of a 
     competitor.
       ``(2) Child.--The term `child' means an individual who is 
     age 14 or under.
       ``(3) Food.--The term `food' shall include beverages, 
     candy, and chewing gum.
       ``(d) Regulations.--Not later than 18 months after the date 
     of the enactment of this section, the Secretary, in 
     consultation with the Secretary of Health and Human Services 
     and the Federal Trade Commission and based on the report 
     prepared by the National Academy of Medicine pursuant to 
     subsection (b)(2), shall promulgate such regulations as may 
     be necessary to carry out the purposes of this section, 
     including regulations defining the terms `marketing', 
     `directed at children', `food of poor nutritional quality', 
     and `brand primarily associated with food of poor nutritional 
     quality' for purposes of this section.''.
       (2) Clerical amendment.--The table of sections for such 
     part IX is amended by adding at the end the following new 
     item:

``Sec. 280I. Denial of deduction for advertising and marketing directed 
              at children to promote the consumption of food of poor 
              nutritional quality.''.

       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid or incurred in taxable years 
     beginning 24 months after the date of the enactment of this 
     Act.
       (c) Additional Funding for the Fresh Fruit and Vegetable 
     Program.--In addition to any other amounts made available to 
     carry out the Fresh Fruit and Vegetable Program under section 
     19 of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1769a), the Secretary of the Treasury (or the 
     Secretary's delegate) shall, on an annual basis, transfer to 
     such program, from amounts in the general fund of the 
     Treasury of the United States, an amount determined by the 
     Secretary of the Treasury (or the Secretary's delegate) to be 
     equal to the increase in revenue for the preceding 12-month 
     period by reason of the amendments made by subsection (b).
                                 ______