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OCR Page 1 of 62Page 51
S. 1530 NOVEMBER 21, 1997 VERSION: 1
UNITED STATES CODE.
(G) PROHIBITION.-A PARTICIPATING MANUFACTURER MAY NOT FILE A PETITION
UNDER SUBSECTION (A) UNTIL SUCH TIME AS THE MANUFACTURER HAS FULLY PAID
THE SECRETARY THE AMOUNT ASSESSED TO THE MANUFACTURER UNDER SECTION
315(F).
SEC. 317. INCENTIVE FOR EXCEEDING REDUCTION GOALS.
(a) IN GENERAL.-IF THE SECRETARY DETERMINES THAT THE PERCENTAGE
REDUCTION IN THE UNDERAGE USE OF TOBACCO PRODUCTS FOR A YEAR EXCEEDS 60
PERCENT FOR CIGARETTES AND 45 PERCENT FOR SMOKELESS TOBACCO PRODUCTS FOR
A YEAR AS REQUIRED UNDER SECTION 314, THE SECRETARY SHALL NOTIFY THE
TRUSTEES WHO SHALL ADJUST, IN ACCORDANCE WITH SUBSECTION (B), THE AMOUNT
OF THE LICENSING FEE THAT A PARTICIPATING MANUFACTURER SHALL BE REQUIRED
TO PAY FOR SUCH YEAR UNDER SECTION 102.
(B) AMOUNT.-
(1) CIGARETTES.-WITH RESPECT TO CIGARETTES, THE AMOUNT OF A
LICENSING FEE ADJUSTMENT APPLICABLE TO A PARTICIPATING MANUFACTURER
UNDER THIS SECTION SHALL BE AN AMOUNT EQUAL TO 1/80 OF THE AMOUNT
THAT THE MANUFACTURER IS REQUIRED TO PAY FOR SUCH YEAR MULTIPLIED BY
THE NUMBER OF PERCENTAGE POINTS BY WHICH THE MANUFACTURER HAS REDUCED
UNDERAGE TOBACCO USE IN EXCESS OF THE 60 PERCENT REDUCTION REQUIRED
UNDER SECTION 314.
(2) SMOKELESS TOBACCO.-WITH RESPECT TO SMOKELESS TOBACCO, THE
AMOUNT OF A LICENSING FEE ADJUSTMENT APPLICABLE TO A PARTICIPATING
MANUFACTURER UNDER THIS SECTION SHALL BE AN AMOUNT EQUAL TO 1/110
OF THE AMOUNT THAT THE MANUFACTURER IS REQUIRED TO PAY FOR SUCH YEAR
MULTIPLIED BY THE NUMBER OF PERCENTAGE POINTS BY WHICH THE
MANUFACTURER HAS REDUCED UNDERAGE TOBACCO USE IN EXCESS OF THE 45
PERCENT REDUCTION REQUIRED UNDER SECTION 314.
(C) PROCEDURES.-THE TRUSTEES, IN CONSULTATION WITH THE SECRETARY, SHALL
DEVELOP PROCEDURES TO CARRY OUT THIS SECTION.
TITLE IV-HEALTH AND SAFETY REGULATION OF TOBACCO PRODUCTS
SEC. 401. HEALTH AND SAFETY REGULATION OF TOBACCO PRODUCTS.
(a) PROHIBITED ACTS.-SECTION 301 OF THE FEDERAL FOOD, DRUG, AND
COSMETIC ACT (21 U.S.C. 331) IS AMENDED BY ADDING AT THE END THE
FOLLOWING:
(X) THE INTRODUCTION OR DELIVERY FOR INTRODUCTION INTO INTERSTATE
COMMERCE OF ANY TOBACCO PRODUCT THAT DOES NOT COMPLY WITH THE PROVISIONS
OF CHAPTER IX.
"(Y) THE FAILURE BY THE MANUFACTURER OF A TOBACCO PRODUCT TO COMPLY
WITH A TOBACCO PRODUCT HEALTH RISK MANAGEMENT STANDARD, A GOOD
MANUFACTURING PRACTICE STANDARD, A TOBACCO PRODUCT LABELING, WARNING OR
PACKAGING STANDARD, OR ANY OTHER REQUIREMENT OF CHAPTER IX.".
(B) DEFINITION.-SECTION 201(G)(1) OF THE FEDERAL FOOD, DRUG, AND
COSMETIC ACT (21 U.S.C. 301 (G) (1)) IS AMENDED BY STRIKING "; AND (D)" AND
INSERTING ", INCLUDING NICOTINE-CONTAINING TOBACCO PRODUCTS THAT DO NOT
COMPLY WITH CHAPTER IX; AND (D)'
(c) INSPECTIONS.-SECTION 704 (A) (1) OF THE FEDERAL FOOD, DRUG, AND
COSMETIC ACT (21 U.S.C. 374 (A) (1)) IS AMENDED-
(1) IN SUBPARAGRAPH (A), BY STRIKING "OR COSMETICS" EACH PLACE THAT
SUCH APPEARS AND INSERTING ", COSMETICS, OR TOBACCO PRODUCTS"; AND
(2) IN THE SECOND SENTENCE, BY STRIKING "DRUGS OR" EACH PLACE THAT
SUCH APPEARS AND INSERTING "DRUGS, TOBACCO PRODUCTS OR".
(D) REGULATION OF TOBACCO PRODUCTS.-THE FEDERAL FOOD, DRUG, AND
COSMETIC ACT (21 U.S.C. 301 ET SEQ.) IS AMENDED-
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