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6
1
tail or otherwise distributes tobacco products to con-
2
sumers, including to locations that sell such prod-
3
ucts over-the-counter.
4
(b) NONCOMPLIANCE.-The Secretary shall withhold
5 from any State that fails to meet the requirements of sub-
6 section (a) or to demonstrate a compliance rate of-
7
(1) at least 75 percent in the fifth and sixth fis-
8
cal years after the date of enactment of the Tobacco
9
Products Control Act of 1998;
10
(2) at least 85 percent in the seventh, eighth,
11
and ninth fiscal years after such date; and
12
(3) at least 90 percent in every fiscal year be-
13
ginning with the tenth fiscal year after such date,
14 an amount equal to 5 percent of all amounts otherwise
15 payable under section 202 (e) to any State for that fiscal
16 year.
17
(c) DEFINITION.-For the purposes of this section,
18 the term "first applicable fiscal year" means the first fis-
19 cal year beginning after the fiscal year in which funding
20 is made available to the States under this section.
21
(f) RELEASE AND DISBURSEMENT.-
22
(1) Upon notice from the Secretary that an
23
amount payable under section 202(e) has been or-
24
dered withheld under subsection (b), a State may pe-
25
tition the Secretary for a release and disbursement
S. 1415 Amdt.
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