S.Amdt. 1260

1. Adds TITLE __--TOBACCO PHASE OUT wherever appropriate

   Adds a title

   Inserted: TITLE __--TOBACCO PHASE OUT

   Inserted: SEC. __01. ESTABLISHMENT OF TOBACCO PHASE OUT PROGRAM.

   Inserted: Chapter IX of the Federal Food, Drug, and Cosmetic Act (as added by section 101 and amended by section 301) is further amended by adding at the end the following:

   Inserted: "SEC. 921. ESTABLISHMENT OF TOBACCO PHASE OUT PROGRAM.

   Inserted: "(a) In General.--The Secretary shall establish a program to require annual reductions in the sale of cigarettes.

   Inserted: "(b) Requirement.--

   Inserted: "(1) In general.--Under the program under subsection (a), each tobacco product manufacturer shall annually certify to the Secretary that--

   Inserted: "(A) with respect to cigarettes made by such manufacturer, the total number of such cigarettes sold during the year for which the certification is submitted is 1 percent less than the total number of such cigarettes sold during the preceding year; or

   Inserted: "(B) such manufacturer has purchased an additional cigarette sales allotment from another manufacturer as provided for in subsection (c).

   Inserted: "(2) Initial certification.--With respect to the first year for which a certification is submitted by a tobacco product manufacturer, the 1 percent reduction required under paragraph (1)(A) with respect to the sale of cigarettes shall be determined using the amount of such manufacturer's cigarettes sold in the highest sales year during the preceding 5-year period (as determined by the Secretary).

   Inserted: "(c) Additional Cigarette Sales Allotment.--

   Inserted: "(1) In general.--A tobacco product manufacturer (referred to in this subsection as the 'contracting manufacturer') to which this section applies may enter into a contract with one or more additional manufacturers (referred to in this subsection as a 'decreased sales manufacturer') to purchase from such manufacturers an additional sales allotment.

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   Inserted: "(2) Requirement.--A contract entered into under paragraph (1) shall--

   Inserted: "(A) require the decreased sales manufacturer to provide for a further reduction in the total number of cigarettes sold during the year involved (beyond that required under subsection (b)(1)) by an amount equal to the additional sales allotment provided for in the contract; and

   Inserted: "(B) permit the contracting manufacturer to increase the total number of cigarettes sold during the year involved by an amount equal to the additional sales allotment provided for in the contract.

   Inserted: "(3) Additional sales allotment.--In this subsection, the term 'additional sales allotment' means the number of cigarettes by which the decreased sales manufacturer agrees to further reduce its sales during the year involved.

   Inserted: "(d) Enforcement.--

   Inserted: "(1) In general.--A tobacco product manufacturer that fails to comply with the requirement of subsection (b) for any year shall be subject to a penalty in an amount equal to $2 multiplied by the number of cigarettes by which such manufacturer has failed to comply with such subsection (b). Amounts collected under this paragraph shall be used to carry out paragraph (2).

   Inserted: "(2) Use of amounts.--

   Inserted: "(A) Implementation costs.--Amount collected under paragraph (1) shall be used to reimburse the Secretary for the costs of implementing the program under this section.

   Inserted: "(B) Tobacco use counter-advertising.--

   Inserted: "(i) Establishment of campaign.--The Secretary, acting through the Administrator of the Substance Abuse and Mental Health Services Administration, shall carry out a campaign of counter-advertising with respect to tobacco use. The campaign shall consist of the placement of pro-health advertisements regarding tobacco use on television, on radio, in print, on billboards, on movie trailers, on the Internet, and in other media.

   Inserted: "(ii) Funding.--If amounts remain available under paragraph (1) after the Secretary is fully reimbursed as provided for under subparagraph (A), such amounts shall be used to carry out the campaign under clause (i).

   Inserted: "(e) Procedures.--The Secretary shall develop procedures for--

   Inserted: "(1) the submission and verification of certificates under subsection (a);

   Inserted: "(2) the administration and verification of additional cigarette sales allotment contracts under subsection (c); and

   Inserted: "(3) the imposition of penalties under subsection (d).".

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   Original wording

   At the appropriate place, insert the following:

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As printed