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TITLE III: Penalties and Enforcement; Consent Decrees; Non-Participating Companies A. Penalties and Enforcement This legislation will be enforceable both by the federal government, including FDA and civil and criminal divisions of the Department of Justice, and by the several States. FDA will also have the authority to contract directly with state agencies to assist with enforcement. If conduct is subject to a particular State's consumer protection law or similar statute, such state may proceed under that law. State enforcement actions -- whether brought under the Act or a State's consumer protection law -- could not impose obligations or requirements beyond those imposed by the legislation (except where the legislation does not specifically preempt additional state- law obligations), and would be limited to the civil and criminal penalties established by the legislation and by the prohibition on duplicative penalties. State enforcement proceedings under the Act (or predicated on conduct violating the Act), except those exclusively local in nature, would be removable to federal court. Nothing in the Act precludes a State from enforcing its laws in the ordinary fashion as to matters not covered by the Act or Protocol. Civil and criminal penalties for violations of the legislation based on those governing other drugs or devices regulated under the Food, Drug and Cosmetic Act and, where applicable, under Title 18 of the U.S. Code. In addition, the industry faces civil penalties of up to $10 million per violation for any violations of the obligations to disclose to the FDA research about tobacco-product health effects and information regarding the toxicity of non-tobacco ingredients and constituents used in their products. This penalty is ten times the largest penalty faced by other drug or device manufacturers for similar violations. To reflect the fact that not all States have filed lawsuits against the tobacco industry, but that the intent of the negotiators is to provide the benefits of the settlement to all States, the industry also will enter into a binding and enforceable national tobacco control -26-