[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 992 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 992

To amend title 10, United States Code, to revise the method for pricing 
   tobacco products for sale in commissaries, exchanges, and ships' 
                    stores, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                May 19 (legislative day, April 19), 1993

 Mr. Bingaman introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To amend title 10, United States Code, to revise the method for pricing 
   tobacco products for sale in commissaries, exchanges, and ships' 
                    stores, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SALE OF TOBACCO PRODUCTS IN COMMISSARIES, EXCHANGES, AND 
              SHIPS' STORES.

    (a) In General.--Chapter 147 of title 10, United States Code, is 
amended by adding at the end thereof the following new section:
``Sec. 2486. Sale of tobacco products in commissaries, exchanges, and 
              ships' stores; use of proceeds
    ``(a) Tobacco products may be sold in commissary stores, military 
exchanges, or ships' stores subject to the requirements prescribed in 
subsections (b) and (c).
    ``(b)(1) In the case of a commissary store, military exchange, or 
ship's store located in the United States, the price charged for any 
tobacco product shall be the prevailing price charged by private 
commercial businesses for the retail sale of such tobacco product in 
the retail market area in which the commissary store, military 
exchange, or ship's store is located.
    ``(2) In the case of a commissary store, military exchange, or 
ship's store located outside the United States, the price charged for 
any tobacco product shall be the average amount charged by private 
commercial businesses for the retail sale of such product in the United 
States.
    ``(3)(A) In determining the prevailing price charged or the average 
price charged by a commercial business, applicable Federal, State and 
local taxes shall be included.
    ``(B) The prevailing price or the average price may be determined 
under an appropriate sampling procedure.
    ``(c)(1) The Secretary of a military department may use the profits 
from the sale of tobacco products by commissary stores, military 
exchanges, or ships' stores under the Secretary's jurisdiction to 
promote the health and fitness of members of the armed forces and their 
dependents.
    ``(2) Amounts made available under paragraph (1) shall remain 
available for obligation without fiscal year limitation.
    ``(d) The Secretary of Defense shall prescribe regulations to carry 
out this section.
    ``(f) In this section:
            ``(1) The term `profits' means the amount which represents 
        the difference between the price charged by commissary stores 
        for the sale of tobacco products and the cost incurred by such 
        commissary stores for the purchase and sale of such products 
        (including appropriate amounts for overhead).
            ``(2) The term `tobacco product' includes cigarettes, 
        cigars, tobacco processed for cigarette or pipe smoking, and 
        tobacco processed for oral use.
            ``(3) The term `United States' includes the Commonwealth of 
        Puerto Rico and the territories and possessions of the United 
        States.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of such chapter is amended by adding at the end thereof the following 
new section:

``2486. Sale of tobacco products in commissaries, exchanges, and ships' 
                            stores; use of proceeds.''.

SEC. 2. EFFECTIVE DATE.

    The amendments made by section 1 shall take effect on October 1, 
1993.

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