Bill summaries are authored by CRS.

Shown Here:
Reported to Senate amended, 2nd committee reporting (05/14/1998)

TABLE OF CONTENTS:

Title I: Regulation of the Tobacco Industry

Subtitle A: Jurisdiction, etc., of Food and Drug

Administration

Subtitle B: Advertising

Title II: Reductions in Underage Tobacco Use

Subtitle A: Underage Use

Subtitle B: State Enforcement Incentives

Subtitle C: Other Programs

Title III: Tobacco Product Warnings and Smoke Constituent

Disclosure

Subtitle A: Product Warnings, Labeling, and Packaging

Subtitle B: Testing and Reporting of Tobacco Product

Smoke Constituents

Title IV: National Tobacco Settlement Trust Fund

Subtitle B (sic): General Spending Provisions

Title V: Standards to Reduce Involuntary Exposure to Tobacco

Smoke

Title VI: Application to Indian Tribes

Title VII: Civil Liability of Tobacco Product Manufacturers

Title VIII: Tobacco Industry Compliance and Employee

Protection from Reprisals

Title IX: Public Disclosure of Tobacco Industry Documents

Title X: Long-Term Economic Assistance for Farmers

Subtitle B (sic): Tobacco Market Transition Assistance

Subtitle C: Farmer and Worker Transition Assistance

Subtitle D: Immunity

Title XI: Miscellaneous

Subtitle A: Prohibitions Relating to Tobacco Products

and Children

Subtitle B: Federal Licensing of Tobacco Product

Distribution

Subtitle C: International Provisions

Subtitle D: Prevention of Tobacco Smuggling

Subtitle E: Antitrust Exemption

Subtitle F: Special Provisions Concerning Programs for

Women, Minorities, and Others

Subtitle G: Sense of the Senate

Subtitle H: Ban On Sale Of Tobacco Products Through the

Use Of Vending Machines

Title XIII (sic): Veterans' Benefits

Title XIV: Revenue and Other Provisions

Subtitle A: Taxes on Tobacco Products

Subtitle B: Women's Health and Cancer Rights

Subtitle C: Limitations Applicable to Other Provisions

National Tobacco Policy and Youth Smoking Reduction Act - Directs the Secretary of Health and Human Services to notify the Congress if the Secretary determines that a decrease in underage use of tobacco resulting from enactment of this Act has produced an increase in underage use of pipe tobacco and cigars.

(Sec. 8) Invalidates the liability limitations of title VII of this Act for the tobacco manufacturer involved if the manufacturer (or any party acting on behalf of or in collusion with the manufacturer) brings an action to have the advertising restrictions imposed by this Act held invalid.

(Sec. 9) Declares that any advertising that violates this Act, specified Federal Regulations, or the Protocol under this Act is an unfair or deceptive act or practice under specified provisions of the Federal Trade Commission Act (FTCA).

(Sec. 10) Requires that the Congress review, and authorizes the Congress to disapprove, any rule under this Act that is subject to existing provisions of Federal law relating to congressional review.

Title I: Regulation of the Tobacco Industry - Subtitle A: Jurisdiction, etc., of Food and Drug Administration - Amends the Federal Food, Drug, and Cosmetic Act (FDCA) to define "tobacco product" as any product made or derived from tobacco that is intended for human consumption.

Creates a new chapter on tobacco products and requires that tobacco products be regulated under the new chapter, subject to exception. Deems a specified existing Federal Regulation (relating to cigarettes and smokeless tobacco) to be lawful and to have been promulgated under the new chapter. Applies the chapter to manufacturers, but excludes growers, warehouses, and grower cooperatives.

Sets forth the circumstances in which a tobacco product is deemed adulterated or misbranded. Requires that advertising include: (1) a statement of the product uses and relevant warnings, precautions, side effects, and contraindications; and (2) if there is a finding by the Secretary that it is necessary to protect the public health, a full description of the product's components. Authorizes the Secretary, by regulation, to require prior approval of label statements. Prohibits requiring prior approval of advertising and declares that tobacco advertising is not subject to specified provisions of the FTCA.

Requires tobacco manufacturers and importers to annually submit to the Secretary specified information, including regarding ingredients, certain types of scientific research documents, and marketing research documents.

Mandates annual registration by every person who manufactures, prepares, compounds, or processes tobacco in any State. Makes the registrations available for public inspection. Mandates biennial inspections of registered manufacturing, compounding, and processing facilities. Allows foreign establishments to register.

Authorizes the Secretary, if appropriate to protect the public health (considering the population as a whole, including users and nonusers), to restrict the conditions of sale, distribution, use, and advertising of tobacco products. Prohibits requiring a prescription from a medical practitioner for sale or distribution.

Authorizes the Secretary to prescribe good manufacturing practice regulations for tobacco products. Provides for exemptions and variances, including for investigational use.

Authorizes the Secretary to enter into contracts for research, testing, and demonstrations regarding tobacco and to obtain the products without regard to provisions of Federal law relating to: (1) advance payment for goods and services; and (2) advertisements for proposals for purchases and contracts.

Authorizes the Secretary, if appropriate for the protection of public health (considering the population as a whole, including users and nonusers), to adopt performance standards for a tobacco product. Requires the standards to include provisions for the protection of public health, including, where appropriate, the reduction or elimination of nicotine.

Authorizes the Secretary to order notification of all persons who should receive notification in order to eliminate an unreasonable risk by a tobacco product of substantial harm to public health. Mandates a recall order if there is a reasonable probability that a tobacco product contains a defect not ordinarily contained in tobacco products that would cause serious adverse health consequences.

Imposes recordkeeping and reporting requirements on tobacco manufacturers and importers, including regarding serious unexpected adverse experiences.

Requires premarket approval for any tobacco product that is not commercially marketed in the United States as of August 11, 1995. Requires application denial in specified circumstances, including if there is a lack of a showing that the product would be appropriate for the protection of public health, determined by well-controlled investigations that may include one or more clinical investigations.

Authorizes the Secretary to require a manufacturer to conduct postmarket surveillance if necessary to protect the public health or if necessary to provide information regarding health risks and other safety issues.

Authorizes the Secretary to designate a product as a reduced risk tobacco product if the Secretary finds that the product will significantly reduce harm to individuals caused by a tobacco product and is otherwise appropriate to protect public health, based on an application that: (1) demonstrates through animal and short-term human testing that the product results in ingestion or inhalation of a substantially lower yield of toxic substances; and (2) if required by the Secretary, includes long-term health effect studies. Requires the Secretary to consider risks and benefits to the population as a whole, including users and nonusers.

Declares that a tobacco product so designated that complies with labeling, marketing, and advertising requirements shall not be regulated as a drug or device.

Requires a manufacturer to notify the Secretary on the development or acquisition of any technology that would reduce the health risk of a tobacco product for which the manufacturer is not seeking such a designation.

Preempts, subject to exception and waiver, any requirement by States and their political subdivisions that is different from the requirements of the new chapter regarding performance standards, premarket approval, adulteration, misbranding, registration, good manufacturing standards, or reduced risk products.

Establishes the Tobacco Products Scientific Advisory Committee.

Mandates regulations to require that retailers whose predominant business is tobacco sales comply with advertising restrictions applicable to retail establishments accessible to individuals under 18.

Subtitle B: Advertising - Requires that the Protocol entered into by the Secretary and participating tobacco manufacturers under this Act contain provisions enforceable at law under which tobacco manufacturers commit to limitations on advertising meeting the requirements of this subtitle.

(Sec. 122) Mandates that the Protocol prohibit tobacco sale or distribution in the United States unless the tobacco's advertising and labeling: (1) contain no human, animal, or cartoon image; (2) are not outdoor advertising (including enclosed stadia and advertising in a retail establishment visible from outside; (3) state that words such as "light" or "low tar" do not make the product less hazardous; (4) are submitted to the Secretary for review at the time of first use; (5) comply with requirements of the FDCA and the Federal Cigarette Labeling and Advertising Act; (6) do not appear on the Internet unless the advertising is designed to be inaccessible in the United States by individuals under 18; (7) use only black text on a white background, subject to exception; (8) for video, use only static black text on white, with any audio using only words without music or sound effects; and (9) for audio, use only words without music or sound effects.

Prohibits such sale or distribution: (1) if any indicia of product identification is in a movie, program, or video game for which a direct or indirect payment has been made to ensure placement; (2) if a direct or indirect payment has been made by a manufacturer, distributor, or retailer to promote the image or use of the product through print or film media or a live performance that appeals to individuals under 18; (3) if any indicia of product identification is used for any non-tobacco product or service licensed, distributed, or sold by a tobacco manufacturer or distributor; (4) unless its label and advertising describe the product as a nicotine delivery device; or (5) using advertising in other than specified media without prior notice to the Secretary.

(Sec. 123) Requires that the Protocol prohibit manufacturers, distributors, and retailers from point-of-sale advertising, subject to exception.

Prohibits manufacturers and distributors from entering into any arrangement with a retailer limiting display of advertising originating with another supplier and permitted by law for retail display.

Title II: Reductions in Underage Tobacco Use - Subtitle A: Underage Use - Directs the Secretary to take all actions under this Act necessary to ensure that specified required percentage reductions in underage tobacco use are achieved.

(Sec. 203) Authorizes the Secretary to commence an action against the responsible manufacturers if the non-attainment percentage is greater than 20 percent. Removes (subject to exception) the annual aggregate payment limits for a manufacturer found by a preponderance of the evidence to have: (1) failed to comply with this Act regarding underage use; (2) taken any material action to undermine achievement of the required reduction; or (3) failed to comply with all recommendations of the Tobacco Agreement Accountability Panel. Provides for restoration of the limits.

Subtitle B: State Enforcement Incentives - Mandates block grants (apportioned by population) to States in which fewer than five percent of individuals under 18 who try to buy tobacco are successful. Requires recipient States to distribute half to retail outlets that have outstanding records of compliance with underage sales restrictions.

(Sec. 213) Requires States to conduct monthly random, unannounced inspections of sales or distribution outlets to ensure compliance with a law prohibiting tobacco sales to individuals under 18. Sets forth minimum inspection requirements. Mandates withholding from any State that fails to meet the requirements of this section of specified percentages of the amount otherwise payable under this subtitle. Allows release of up to 75 percent of the withheld amount in certain circumstances.

Subtitle C: Other Programs - Establishes the National Smoking Cessation Program, authorizing grants to be used: (1) by entities for tobacco use cessation programs meeting specified requirements; and (2) by individuals to enroll in a cessation program or to purchase a cessation product meeting specified requirements. Authorizes appropriations from the Fund (other than amounts in the State Litigation Settlement Account) to carry out this paragraph.

(Sec. 222) Establishes the Tobacco-Free Education Board and the National Tobacco-Free Public Education Program to make grants and contracts for public education to discourage use initiation and encourage users to quit. Authorizes appropriations from the Fund (other than amounts in the State Litigation Settlement Account) to carry out this section.

(Sec. 223) Establishes the National Community Action Program of grants to State and local governmental entities for community-based tobacco control efforts designed to encourage community involvement in reducing tobacco use. Authorizes appropriations from the Fund (other than amounts in the State Litigation Settlement Account) to carry out this section.

(Sec. 224) Mandates a block grant to each State that has a law that provides for licensing of tobacco retail sale or distribution entities.

Requires recipient States to have: (1) criminal and civil penalties and suspension or revocation of licenses for improper sale or distribution; and (2) penalties on underage youths for possessing, purchasing, or attempting to purchase tobacco. Authorizes the Secretary to establish a Federal retail licensing program in States that have not established State licensing programs. Authorizes appropriations from the National Tobacco Settlement Trust Fund (other than from amounts in the State Litigation Settlement Account) to carry out this section.

Title III: Tobacco Product Warnings and Smoke Constituent Disclosure - Subtitle A: Product Warnings, Labeling and Packaging - Amends the Federal Cigarette Labeling and Advertising Act and the Comprehensive Smokeless Tobacco Health Education Act of 1986 to revise the warning statements required on domestic cigarette and smokeless tobacco labeling and advertising.

(Sec. 305) Amends the Federal Cigarette Labeling and Advertising Act to direct the Secretary to determine, in the Secretary's sole discretion, whether advertising or labeling (or both) must disclose tar and nicotine yields. Authorizes the Secretary to prescribe disclosure regarding any smoke constituent, but prohibits requiring disclosure on any package face or advertisement.

Subtitle B: Testing and Reporting of Tobacco Product Smoke Constituents - Mandates regulations requiring the testing, reporting, and disclosure of tobacco smoke constituents and ingredients that the Secretary determines should be disclosed to the public to protect public health. Grants the Food and Drug Administration authority to conduct or require the testing, reporting, and disclosure.

Title IV: National Tobacco Settlement Trust Fund - Subtitle B (sic): General Spending Provisions - Requires, subject to the availability of appropriations, payments of Fund amounts (other than in the State Litigation Settlement Account) to the Food and Drug Administration for costs in implementing and enforcing tobacco requirements.

Title V: Standards to Reduce Involuntary Exposure to Tobacco Smoke - Requires the responsible entity for each non-residential public building (regularly entered by at least ten individuals at least one day per week and used for purposes that affect interstate or foreign commerce (except certain types of facilities)) to implement a smoke-free environment policy. Allows designated smoking areas meeting specified requirements.

(Sec. 503) Allows any aggrieved person, any State or local governmental agency, or the Assistant Secretary of the Occupational Safety and Health Administration of the Department of Labor to bring an action to enforce this title.

(Sec. 504) Declares that this title does not: (1) preempt any other Federal, State, or local law providing greater protection from environmental tobacco smoke health hazards; or (2) apply to any State that, by law, provides that it shall to apply to that State.

Title VI: Application to Indian Tribes - Reduction in Tobacco Use and Regulation of Tobacco Products in Indian Country Act of 1998 - Makes the provisions of this Act applicable to: (1) the manufacture, distribution, or sale of tobacco or tobacco products in Indian country and on other trust lands subject to the jurisdiction of an Indian tribe, with exceptions for religious or traditional uses; and (2) an Indian tribe that engages in the manufacture, distribution, or sale of tobacco products.

Makes provisions of this Act and the Federal Food, Drug, and Cosmetic Act (FDCA) relating to the manufacture, distribution, and sale of tobacco products applicable in Indian country and on other trust lands. Vests responsibility for enforcing regulations with respect to tobacco-related activities that take place in Indian country or on trust lands in: (1) the Indian tribe involved; (2) the State within which the lands of the tribe are located under a voluntary cooperative agreement; or (3) the Secretary of Health and Human Services.

Directs the Secretary to: (1) provide assistance, including grant funds, to Indian tribes for meeting and enforcing requirements under such regulations, subject to eligibility requirements; and (2) implement and enforce such regulations on behalf of tribes that are unwilling or unqualified to do so or that are considered to be non-participating tobacco product manufacturers.

Applies requirements of FDCA and this Act with respect to licensing of tobacco retailers to retailers in Indian country or on trust lands. Directs the Secretary to: (1) promulgate regulations to authorize Indian tribes to implement tobacco product licensing programs in Indian country or on trust lands; and (2) implement such requirements on behalf of unqualified tribes. Requires Indian tribes, in order to assume responsibility for licensing and regulation of tobacco-related activities, to establish terms and standards similar to those described under this Act for a State licensing law.

Requires the Secretary to: (1) award grants to Indian tribes with approved anti-smoking plans; and (2) promulgate regulations providing for the form and content of anti-smoking plans to be submitted. Requires grants to be used to reimburse tribes for smoking-related health expenditures.

Makes amounts available from the National Tobacco Settlement Trust Fund for the Indian Health Service and Indian tribes for reducing tobacco consumption, promoting smoking cessation, and funding related activities.

(Sec. 604) Requires Indian tribes and tribal corporations to: (1) collect State excise or sales taxes on the purchase of tobacco products by non-tribal members; and (2) remit such taxes to the U.S. Treasury, which shall, in turn, remit the taxes to the State.

Title VII: Civil Liability of Tobacco Product Manufacturers - Applies this title to any civil action involving a tobacco claim, including a claim that has not reached final judgment or final settlement at enactment of this Act, brought against: (1) a participating tobacco manufacturer or its predecessors; (2) various officers, employees, and agents of such a manufacturer; (3) a tobacco importer, distributor, wholesaler, or retailer meeting certain requirements; (4) a supplier of tobacco product constituents meeting certain requirements; (5) a tobacco grower; or (6) an insurer of any such persons. Sets forth exceptions. Allows a State to elect not to resolve such a civil action or not to enter into the Master Settlement Agreement (the agreement either previously entered or to be entered into by the States, the participating tobacco product manufacturers, and the Trade Associations implementing the June 20, 1997, Proposed Resolution).

(Sec. 703) Preempts inconsistent State laws.

(Sec. 704) Prohibits (except for States electing under section 702 or as allowed under this section) any governmental entity, Indian tribe, or other entity acting in parens patriae to file or maintain a civil tobacco claim. Allows any State to request that tobacco manufacturers enter into the Master Settlement Agreement or a consent decree. Provides for the disposition of the Castano Civil Actions, including dismissal with full reservation of the rights of individual class members to pursue claims not based on addiction or dependency.

(Sec. 705) Deems any tobacco claim to which this title applies to arise under this section and requires that it be governed by this title, but requires that the substantive rules of decision for the claim be derived from the law of the State or Tribe that would have been applicable but for the operation of this section (to the extent not inconsistent with this title). Makes the Federal cause of action the exclusive means of determining civil liability on any claim to which this title applies and preempts all other bases for tobacco claims under State, Tribal, and local law.

Allows claims under this subtitle to be filed only against a tobacco manufacturer of a surviving entity established by a tobacco manufacturer. Bars addiction and dependence claims. Prohibits the admission or discovery of evidence regarding future reduced-risk tobacco products. Prohibits requiring production of any documents not included in the document depository established under section 903.

Prohibits joint and several liability for participating manufacturers with nonparticipating manufacturers. Mandates, on request of a participating manufacturer, the severing of a trial involving participating and nonparticipating manufacturers. Presumes that nicotine is addictive and that the diseases identified in three specified documents as being caused by tobacco use are so caused.

(Sec. 706) Declares that no participating manufacturer shall be obligated to pay a judgment or settlement on a claim to which this title applies except in accordance with this section.

Requires any party claiming entitlement to a monetary payment under a final judgment or final settlement to register the claim with the Secretary. Requires the Secretary to assign a payment priority based on the registration date. Caps aggregate payments by all participating manufacturers in a year at $6.5 billion.

Makes all manufacturers jointly and severally liable for payments governed by this section arising from conduct before enactment of this Act. Prohibits any participating manufacturer from ceasing operations without establishing a surviving entity against which a claim may be brought. Prohibits discharging any participating manufacturer's obligation in Federal bankruptcy or any other insolvency proceeding under State law.

(Sec. 707) Mandates arbitration regarding attorneys' fees and expenses relating to litigation affected by, or legal services that resulted in or created a model for programs in, this Act if the attorney and plaintiff cannot agree.

(Sec. 708) Makes the liability limits of this title inapplicable to a manufacturer that does not enter into a consent decree or the Protocol before enactment of this Act.

Title VIII: Tobacco Industry Compliance and Employee Protection From Reprisals - Establishes the Tobacco Agreement Accountability Panel. Requires each participating manufacturer to submit at least annually a plan to achieve the required percentage reductions in underage tobacco use. Authorizes suspension of a manufacturer's annual limitation on civil judgments if its actions or inactions, proven by clear and convincing evidence, create a clear and present danger to the attainment of reduction targets.

(Sec. 802) Prohibits manufacturer retaliation against the manufacturer's employee for whistle blowing. Authorizes any employee who believes that he or she has been retaliated against for such reason to file a complaint with the Secretary. Authorizes the Secretary to order abatement of the violation, reinstatement with back pay, and payment of compensatory damages and all of the complainant's costs and expenses.

Title IX: Public Disclosure of Tobacco Industry Documents - Applies this title to all participating manufacturers.

(Sec. 903) Requires manufacturers to establish a National Tobacco Document Depository, with manufacturers bearing the establishment and operating costs. Requires manufacturers to provide specified Depository contents.

(Sec. 904) Provides for the treatment of attorney-client privilege, attorney work product, and trade secret information.

(Sec. 905) Requires that documents that are not subject to attorney-client privilege, attorney work product, or trade secret protection be made available to the public.

(Sec. 906) Establishes the National Tobacco Documents Review Board to maintain the Depository and to determine claims of attorney client privilege, attorney work product, or trade secret protection.

(Sec. 910) Requires each manufacturer to act in good faith in asserting claims of privilege or trade secret protection. Mandates, if the Board determines that a manufacturer has not acted in good faith, assessment of administrative costs and all attorneys' fees incurred by the Board and any party contesting the privilege. Allows civil monetary penalties. Mandates a civil monetary penalty for failure to produce indexes and documents in compliance with the schedule set forth in this title.

Title X: Long-Term Economic Assistance for Farmers - Long-Term Economic Assistance for Farmers Act or the LEAF Act -

Subtitle B (sic): Tobacco Market Transition Assistance - Directs the Secretary of Agriculture to make payments to eligible tobacco quota holders, lessees, and tenants for lost tobacco quota resulting from decreased domestic production. Sets forth payment determination provisions.

Allocates funds from the National Tobacco Settlement Trust Fund for flue-cured and non flue-cured tobacco lost quota payments. Sets forth provisions regarding: (1) fund allocation; (2) quota relinquishment (and reissuance in the case of non flue-cured tobacco); (3) payment limitations and acceleration; (4) subsequent sale or transfer; and (5) death of quota holder, lessee, or tenant.

(Sec. 1022) Directs the Secretary to make payments from the National Tobacco Settlement Trust Fund to reimburse the Department of Agriculture for tobacco-related program costs. Stipulates that such payments may not be used: (1) to provide direct benefits to quota holders, lessees, or tenants; or (2) in a manner that changes Federal crop insurance premiums for participating tobacco producers.

(Sec. 1023) Directs the Secretary to make payments to States for tobacco community economic development grants. Reserves State assistance to only those counties with more than $100,000 in tobacco income during one or more of the 1995 through 1997 marketing years. Bases amounts upon a State's tobacco-derived income during such period. Includes among permitted grant uses: (1) rural business activities; (2) down payment loan assistance; (3) creation of farm or off-farm employment; (4) economic diversification; and (5) alternative agricultural product development. Permits hiring preferences for persons eligible for worker transition assistance or farmer education grants under this Act.

(Sec. 1024) Amends the Agricultural Adjustment Act of 1938 to replace the farm marketing quota system for flue-cured tobacco with a Federal permit system for quota holders who were principal producers. Includes production and acreage limitations in such permits. Prohibits permit sale or lease, but permits transfer upon death or voluntary transfer to an active producer-spouse- or descendant.

(Sec. 1025) Provides for referenda on proposed tobacco quota changes within a State. Revises penalty provisions for failure to meet quota purchase agreements.

Amends the Agricultural Act of 1949 to: (1) eliminate the tobacco producer, purchaser, or importer marketing assessment; and (2) expand the tobacco types subject to no net cost assessment and no net cost tobacco account provisions.

Subtitle C: Farmer and Worker Transition Assistance - Sets forth group eligibility requirements under a tobacco worker transition program whereby a group of tobacco entity workers may apply for Department of Labor assistance for: (1) employment services and training; (2) readjustment allowances; or (3) job search or relocation allowances. Obligates program funds through FY 2008 from the National Tobacco Settlement Trust Fund.

(Sec. 1032) Amends the Higher Education Act of 1965 to authorize through September 30, 2024, a higher education farmer opportunity grant program for qualifying tobacco farm family members to obtain undergraduate degrees. Obligates program funds from the National Tobacco Settlement Trust Fund.

Subtitle D: Immunity - Grants tobacco producers, growers associations, or warehouse owners and employees immunity from any action resulting from a tobacco product manufacturer's, distributor's, or retailer's noncompliance with the National Tobacco Policy and Youth Smoking Reduction Act.

Title XI: Miscellaneous - Subtitle A: Prohibitions Relating to Tobacco Products and Children - Tobacco Use by Minors Prevention Act - Amends the Federal Food, Drug, and Cosmetic Act (FDCA) to make it unlawful for any domestic concern to use the mails or interstate commerce to contribute to the foreign: (1) sale or distribution of tobacco to children; (2) promotion of tobacco in a way that does not comply with Federal domestic promotion requirements; or (3) export of tobacco packages without warning labels meeting specified requirements.

Adds such actions to the list of prohibited acts and entitles a person who provides information leading to conviction for violations to a portion of the criminal fine collected.

(Sec. 1106) Amends the Public Health Service Act to mandate a study on the framework for a research agenda and priorities to be used by the National Tobacco Task Force. Authorizes appropriations.

Establishes the National Tobacco Task Force to foster coordination among public health agencies, academic bodies, and community groups that conduct or support tobacco research.

Authorizes appropriations from the National Tobacco Settlement Trust Fund (other than from amounts in the State Litigation Settlement Account) to carry out this paragraph.

Requires the Centers for Disease Control and Prevention to carry out tobacco-related surveillance and epidemiologic studies and develop tobacco control and prevention strategies.

Authorizes appropriations from the Fund (other than from amounts in the State Litigation Settlement Account) to carry out this paragraph. Establishes in the Office of the Director of the National Institutes of Health (NIH) the Tobacco-Related Research Initiative. Requires the Initiative to provide funds to conduct or support epidemiological, behavioral, biomedical, and social science research on the prevention and treatment of: (1) tobacco addiction; and (2) diseases associated with tobacco use. Establishes in NIH the Office of Tobacco-Related Research, including in its duties identifying and coordinating tobacco-related research conducted or supported by NIH and establishing a clearinghouse for tobacco-related research information.

Requires that the Office of Minority Health in the Office of the Assistant Secretary for Health coordinate research, service delivery, and the inclusion of community-based organizations regarding tobacco-related diseases, prevention, and cessation programs for ethnic, socio-economic, and culturally-diverse populations.

Amends title XIX (Medicaid) of the Social Security Act to remove provisions allowing States to exclude or restrict coverage for drugs to promote smoking cessation.

(Sec. 1107) Amends the Tariff Act of 1930 to prohibit importation of tobacco products produced in a foreign country by child labor.

Subtitle B: Federal Licensing of Tobacco Product Distribution - Prohibits any domestic concern from engaging in the manufacture, or distribution of tobacco products for sale, in the United States unless licensed by the Secretary. Makes manufacture without a license a prohibited act under the Federal Food, Drug, and Cosmetic Act.

Subtitle C: International Provisions - Makes funds appropriated from the National Tobacco Settlement Trust Fund available for: (1) the American Center on Global Health and Tobacco; (2) tobacco control activities in foreign countries; and (3) enforcement of international tobacco sale, distribution, marketing, or promotion requirements.

(Sec. 1132) Establishes the American Center on Global Health and Tobacco (ACT) in the District of Columbia as a private, nonprofit corporation. Authorizes appropriations, subject to appropriations, from the National Tobacco Settlement Trust Fund (other than amounts in the State Litigation Settlement Account) to carry out this section. Restricts ACT to only funding programs for private sector groups.

(Sec. 1133) Prohibits any U.S. officer, employee, department, or agency from promoting the sale or export of tobacco or tobacco products or seeking the reduction of any foreign country restrictions on the marketing of tobacco or tobacco products.

Subtitle D: Prevention of Tobacco Smuggling - Makes it unlawful for any person to introduce in interstate or foreign commerce or to remove from customs custody for use any tobacco product unless packaged and labeled as required by this paragraph. Mandates a unique serial number on all packages. Requires (allowing waivers) exported packages to be labeled with the country of final destination. Makes it unlawful to alter, obliterate, or remove any mark or label required under this subtitle except as authorized by Federal law or regulations.

(Sec. 1143) Makes it unlawful for any person to export tobacco unless the person: (1) has posted a bond containing a disclosure of the country to which the product will be exported; and (2) receives a written statement from the tobacco recipient that the recipient will not violate any law or regulation of that country regarding tobacco and that the recipient has never been convicted of any tobacco offense.

(Sec. 1144) Mandates a program of tobacco product permits to introduce tobacco into (or receive from) interstate or foreign commerce. Makes this section inapplicable to retailers.

(Sec. 1145) Makes it unlawful, without a permit, to engage in the business of importing into the United States, manufacturing, packaging, warehousing or purchasing for resale at wholesale tobacco products, or, to sell or hold out as selling or arranging for, the purchase for resale at wholesale of tobacco products. Makes it unlawful, without a permit, for any person so engaged to receive, sell, or ship tobacco products.

(Sec. 1146) Regulates price and labeling on military installations and labeling on Indian reservations.

(Sec. 1147) Makes it unlawful for any person to sell tobacco in any duty-free shop in the United States or to any duty-free shop. Prohibits forwarding through or manufacturing tobacco in any foreign trade zone.

(Sec. 1148) Applies existing Federal felony criminal fine provisions to violations of this subtitle. Authorizes, in certain circumstances, the compromising of liability regarding violations of this subtitle.

(Sec. 1149) Amends the Federal criminal code to decrease the number of cigarettes necessary to apply provisions relating to trafficking in contraband cigarettes. Makes it unlawful to traffick in contraband tobacco products and to engage in specified related actions. Modifies recordkeeping and inspection requirements. Adds references to contraband tobacco products to penalty provisions and subjects proceeds to seizure and forfeiture.

(Sec. 1150) Authorizes appropriations to carry out this subtitle.

Subtitle E: Antitrust Exemption - Declares that Federal and State antitrust laws do not apply to the joint discussion, consideration, review, action, agreement, or understanding by any participating tobacco manufacturers for the purposes of, and limited to: (1) entering into and complying with the Protocol, Trust Agreement, or Consent Decree; (2) refusing to deal with a distributor, retailer, or other tobacco seller who fails to comply with the Act, Protocol, or Consent Decree; or (3) a plan or program under this subtitle.

Authorizes the Attorney General to approve the plans or programs of one or more manufacturers to reduce underage tobacco use.

Subtitle F: Special Provisions Concerning Programs for Women, Minorities, and Others - Declares that research funded under this Act: (1) if appropriate to the scope and purpose of the investigation, must include data and analysis regarding women or minorities; and (2) should be in proportion to the prevalence of minorities in the smoking population and be conducted at minority education institutions or institutions providing the greatest amount of health care to minorities.

(Sec. 1172) Mandates programs to reduce tobacco use through media-based (such as counter-advertising) and nonmedia-based education, prevention, and cessation campaigns, targeting adults, children, women, and minorities targeted by tobacco industry advertising. Authorizes appropriations from the National Tobacco Settlement Trust Fund (other than from amounts not (sic) in the State Litigation Settlement Account or otherwise obligated).

(Sec. 1173) Authorizes appropriations from the National Tobacco Settlement Trust Fund (other than from amounts in the State Litigation Settlement Account) for Community, Migrant, and Homeless Health Centers receiving grants under specified provisions of the Public Health Service Act to provide health services for, and to prevent, tobacco-related diseases.

Subtitle G: Sense of the Senate - Declares that it is the sense of the Senate that the proceeds of this Act may be used for: (1) reimbursing public health care financing programs for tobacco-related costs, including Medicare; (2) supporting tobacco use prevention and cessation; (3) supporting tobacco-related health services research; (4) assisting tobacco farmers and tobacco-dependent communities; (5) creating and funding a Tobacco Asbestos Trust; (6) settling with and reimbursing States for tobacco-related health care costs and damages, including Medicaid; and (7) funding the Federal Black Lung Program, child care and early childhood development, veterans' benefit programs, and NIH clinical trials.

Subtitle H: Ban On Sale Of Tobacco Products Through The Use Of Vending Machines - Makes it unlawful to sell tobacco products through vending machines, requiring that tobacco vending machine owners and operators be reimbursed for the fair market value of their businesses.

Requires that reimbursement be through the Tobacco Vending Reimbursement Corporation, a private, nonprofit corporation established in the District of Columbia. Mandates transfer from funds in the National Tobacco Settlement Trust Fund (other than from amounts in the State Litigation Settlement Account) as provided in appropriations Acts to make due compensation. Makes acceptance of a payment from the Corporation settlement of all pending and future claims related to the vending machine ban. Authorizes appropriations from the National Tobacco Settlement Trust Fund (other than from amounts in the State Litigation Settlement Account).

Title XIII (sic): Veterans' Benefits - Amends Federal law relating to veterans' benefits to give the Secretary of Veterans Affairs the right to recover from a participating tobacco manufacturer, distributor, or retailer the cost of compensation for disability or death attributable to a veteran's use of tobacco products during active duty.

Requires any amount recovered to be credited to the Department of Veterans Affairs Tobacco Recovery Fund. Makes that fund available without fiscal year limitation for veterans benefit programs, including administrative costs. Authorizes transfer of funds to Department of Veterans Affairs appropriations, to remain available until expended.

Excludes amounts recovered under this title from the annual limit on damages for which participating tobacco manufacturers, distributors, and retailers may be found liable.

Title XIV: Revenue and Other Provisions - Subtitle A: Taxes on Tobacco Products - Amends the Internal Revenue Code to increase the tax rates on tobacco products. Establishes an excise tax for failure to meet specified underage smoking reduction goals. Establishes the National Tobacco Settlement Trust Fund (the Fund) into which shall be deposited revenues from the tobacco tax, the excise tax, and penalties collected under the National Tobacco Policy and Youth Smoking Reduction Act. Makes amounts in the Fund available for long-term economic assistance to farmers and to pay tax refunds to manufacturers on products withdrawn from the market or on articles lost or destroyed. Establishes within the Fund a State Litigation Settlement Account which shall be used to make payments to each State according to specified percentages. Sets forth provisions concerning Medicaid (title XIX of the Social Security Act) cost recovery rules.

Subtitle B: Women's Health and Cancer Rights - Women's Health and Cancer Rights Act of 1998 - Amends the Employee Retirement Income Security Act of 1974, the Public Health Service Act, and the Internal Revenue Code to require certain group health plans, and health insurance issuers providing coverage under a group plan, to ensure specified minimum coverage regarding: (1) breast cancer mastectomies, lumpectomies, and lymph node dissections; (2) post-mastectomy breast reconstruction on both breasts; and (3) prostheses and complications of mastectomy, including lymphedemas.

Prohibits: (1) requiring the attending physician to obtain authorization from the plan or issuer for prescribing any length of stay (but declares that this Act does not prevent inpatient stay prenotification requirements, if consistent with terms and conditions applicable to other inpatient benefits); (2) denial of eligibility, enrollment, or renewal to avoid these requirements; (3) incentives to individuals to encourage the individuals to accept less than the minimum protections; (3) certain penalties or incentives to providers; and (4) restricting benefits for any portion of a stay. Provides for the relationship of this Act to State laws.

Amends the Public Health Service Act to apply the same requirements to health insurance issuers in the individual market.

Requires the Agency for Health Care Policy and Research to study and report to appropriate congressional committees regarding: (1) disease management strategies for breast cancer; (2) controlled clinical evidence linking specific clinical procedures to improved outcomes; (3) quality measures to evaluate plan and provider performance in breast cancer management; (4) quality improvement interventions to change the process of care for better outcomes; (5) preventive strategies concerning breast cancer; and (6) clinical practice variation.

Subtitle C: Limitations Applicable to Other Provisions - Declares that, notwithstanding any other provision of this Act: (1) any expenditures required by this Act shall be made from the National Tobacco Settlement Trust Fund or the Department of Veterans Affairs Tobacco Recovery Fund; and (2) except for title X of this Act and specified provisions of the Internal Revenue Code, the Federal Government shall only be obligated to make expenditures as required by this Act, including any payment to any person or government, as provided in advance in appropriations Acts.

(Sec. 1422) Declares that, notwithstanding any other provision of, or amendment made by, this Act, no fee or charge imposed by that provision or amendment shall take effect unless the fee or charge is: (1) for a voluntary service; (2) imposed on the direct beneficiaries of the service; and (3) in an amount that does not exceed the direct cost of providing the service.