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A:\FRIST.1 3 1 years of age who attempt to purchase tobacco prod- 2 ucts in the State in such year are successful in such 3 purchase. 4 (c) PAYOUT; USE OF FUNDS.- 5 (1) ANNUAL DISTRIBUTION.-For each fiscal 6 year in which one or more States is eligible to re- 7 ceive a grant under this section, the Secretary shall 8 pay out the balance in the account established under 9 section 211(a) as of the end of the preceding fiscal 10 year. 11 (2) PAYMENT TO STATE.-If more than one 12 State is eligible to receive a grant under this section 13 for any fiscal year, the amount payable for that fis- 14 cal year shall be apportioned among such eligible 15 States on the basis of population. 16 (3) USE OF FUNDS.-Each State that receives 17 a grant under this section shall distribute half of the 18 amount received among retail outlets of tobacco 19 products that, for fiscal year for which the State met 20 the requirements of subsection (b), have outstanding 21 records of compliance with the restrictions on under- 22 age sales of tobacco products. 23 SEC. 213. STATE ENFORCEMENT INCENTIVES. 24 (a) IN GENERAL.- S. 1415 Amdt.

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