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S.L.C. O:\BAI\BAI98.251 34 1 checks and enforce State laws under this section 2 through the use of penalties described in subsection 3 (c) SO as to ensure that minors are successful in pur- 4 chasing tobacco products less than 5 percent of the 5 time. 6 "(2) REQUIREMENTS.-The Secretary may by 7 regulation implement such requirements as the Sec- 8 retary determines necessary to ensure that any com- 9 pliance checks performed by the State under para- 10 graph (1) are accurate. 11 "(3) VIOLATIONS.-If the Secretary determines 12 that the provisions of subsection (a) are being vio- 13 lated within a State, the Secretary shall have the au- 14 thority to enforce such provisions in the State. 15 "(e) STATE COMPLIANCE.-Beginning with the 3rd 16 full calendar year following the date of enactment of this 17 subchapter, if, with respect to a State, the Secretary deter- 18 mines that minors are successful in purchasing tobacco 19 products more than 5 percent of the time, the Secretary 20 shall notify the State and reduce payments to the State 21 under section 111 of the Healthy Kids Act by 1 percent 22 for each percentage point by which the State is not in com- 23 pliance with this subsection. 24 "(f) PREEMPTION.-The provisions of this section 25 shall not preempt any provision of State or local law. that February 12, 1998