[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6791 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6791
To amend the Internal Revenue Code of 1986 to increase Federal excise
taxes on tobacco products and to dedicate the revenues from the
increased taxes to the war on cancer.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 1, 2008
Mr. Higgins (for himself and Mr. Israel) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committee on Energy and Commerce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase Federal excise
taxes on tobacco products and to dedicate the revenues from the
increased taxes to the war on cancer.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Cancer Fund Act of 2008''.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to establish a National Cancer Fund in order to
accelerate progress in the war on cancer and to expand
federally funded cancer research and control programs with the
goal of reducing cancer mortality to zero, to benefit cancer
patients, ensure a high quality of life for cancer survivors,
and provide for palliative and end-of-life care,
(2) to prepare for the looming impact of an aging American
population and the anticipated financial burden associated with
medical treatment and lost productivity, along with the toll of
human suffering that accompanies a cancer diagnosis, and
(3) to support the advancement of science and the
development of advanced technologies and medicine to improve
the prevention, early detection, and treatment of cancer.
SEC. 3. NATIONAL CANCER FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 (relating to trust fund code) is amended by adding at the
end thereof the following new section:
``SEC. 9511. NATIONAL CANCER FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `National Cancer
Fund', consisting of such amounts as may be appropriated or credited to
the National Cancer Fund as provided in this section or section
9602(b).
``(b) Transfer of Funds to the National Cancer Fund.--There are
hereby appropriated to the National Cancer Fund amounts equivalent to
so much of the taxes received in the Treasury under chapter 52
(relating to tobacco products and cigarette papers and tubes) as are
attributable to the amendments made by the National Cancer Fund Act of
2008.
``(c) Expenditures From National Cancer Fund.--Amounts in the
National Cancer Fund shall be available, as provided by appropriation
Acts, for making expenditures for--
``(1) cancer research, with an emphasis on most lethal
forms of cancer, defined as those cancers with 5 year survival
rates below 50 percent, along with an additional emphasis on
rare cancers, and focusing on the development of effective
prevention, early detection tools, and treatments,
``(2) development and expansion of NIH cancer programs to
explore cancer biology, expand high-risk high-reward research,
support large-scale collaborative projects, and support other
programs to accelerate the research and development, and the
delivery of cancer prevention and early detection tools,
treatments, and therapies,
``(3) increased study of the long-term effects of cancer
treatment on cancer survivors and the challenges associated
with access to quality follow up care and may provide for the
expansion and coordination of cancer survivorship research
activities at National Cancer Institute-designated cancer
centers,
``(4) expansion of breast and cervical cancer early
detection and treatment programs that cover screening and
treatment for women who do not have access to health care,
``(5) expansion of colorectal cancer early detection and
treatment programs to cover men and women who do not otherwise
have access to health care,
``(6) development and expansion of early detection and
treatment programs to cover men and women who do not otherwise
have access to health care,
``(7) expansion of access to cancer-related clinical trials
and health care for underserved and underinsured populations,
``(8) increased access for federally sponsored cancer
clinical trials,
``(9) implementation of a nationwide tobacco cessation
program, and
``(10) expansion and support of regulatory sciences to
speed the development of biomarkers, advanced disease modeling,
co-development of diagnostics and therapeutics, enhanced
clinical trial design, biological standards for baseline
metrics, and other tools for assessing the efficacy of new
therapeutic agents in order to expedite the delivery of more
effective cancer treatments to patients,
``(11) development and expansion of the cancer workforce,
and
``(12) other such cancer-related activities as deemed
appropriate.''.
(b) Clerical Amendment.--The table of sections for such subchapter
A is amended by adding at the end the following new item:
``Sec. 9511. National Cancer Fund.''.
SEC. 4. PRESIDENT'S CANCER PANEL.
(a) In General.--Section 415(a) of the Public Health Service Act
(42 U.S.C. 285a-4) is amended to read as follows:
``(a) Membership.--
``(1) The President's Cancer Panel (hereafter in this
section referred to as the `Panel') shall be composed of 5
persons appointed by the President who, by virtue of their
training, experience, and background, are exceptionally
qualified to appraise the cancer research, control, and
regulatory programs of the Federal Government. At least 3
members of the Panel shall be distinguished scientists or
physicians, including one who is an expert in public health,
and one who has a related area of expertise in basic research.
``(2) Members of the Panel shall be appointed for five-year
terms, except that (i) any member appointed to fill a vacancy
occurring prior to the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of such term, and (ii) a member may serve until
the member's successor has taken office. If a vacancy occurs in
the Panel, the President shall make an appointment to fill the
vacancy not later than 90 days after the date the vacancy
occurred.''.
(b) Duties.--Section 415(b) of the Public Health Service Act (42
U.S.C. 285a-4) is amended to read as follows:
``(b) Duties.--
``(1) The Panel shall monitor the development and execution
of the cancer-related programs and activities of the Federal
Government and shall report directly to the President and
Congress. Any delays or blockages in rapid execution of these
programs and activities shall immediately be brought to the
attention of the President and Congress.
``(2) The Panel shall submit to the President periodic
progress reports on the National Cancer Program and shall
submit to the President, the Secretary, and the Congress an
annual evaluation of the efficacy of the Program and
suggestions for improvements, and shall submit such other
reports as the President shall direct.
``(3) The Panel shall submit an annual report of the short
and long-term needs and opportunities of federally-funded
cancer programs and make recommendations on how to better
integrate and coordinate these activities in furtherance of
advancing progress in the war on cancer. Such reports will be
based on recommendations to be developed through one or more
meetings convened at least once each year that would include
the participation of individuals with extensive expertise in
the areas of expenditure enumerated under section (3)(a) of
this Act, including representation from the relevant federally-
funded cancer programs.''.
(c) Alternative Funding Sources for National Cancer Fund.--Section
415 of the Public Health Service Act (42 U.S.C. 285a-4) is amended by
adding at the end the following new subsection:
``(c) Alternative Funding Sources for National Cancer Fund.--
``(1) In general.--Beginning no later than 6 months after
the date of the enactment of this subsection, the Panel shall
convene one or more meetings to support an examination of the
feasibility of additional sources of funding that could be
credited to the National Cancer Fund in order to determine
which funding supplemental sources for federally funded cancer
programs will provide the greatest opportunities for
strengthening these programs.
``(2) Participants.--Such meetings shall be comprised of
individuals having expertise in public and private finance,
capital investment, public health, cancer research, cancer
prevention, cancer screening, and cancer treatment, in order to
determine the needs of the National Cancer Fund along with
viable options for supporting the fund.
``(3) Deadline for report.--Within 1 year after the date of
the enactment of this subsection, the Panel shall issue a
report to be delivered to Congress with recommendations for
funding the National Cancer Fund.''
SEC. 5. INCREASE IN EXCISE TAX RATE ON TOBACCO PRODUCTS.
(a) Cigars.--Section 5701(a) of the Internal Revenue Code of 1986
is amended--
(1) by striking ``$1.828 cents per thousand ($1.594 cents
per thousand on cigars removed during 2000 or 2001)'' in
paragraph (1) and inserting ``$50.00 per thousand'',
(2) by striking ``20.719 percent (18.063 percent on cigars
removed during 2000 or 2001)'' in paragraph (2) and inserting
``52.988 percent'', and
(3) by striking ``$48.75 per thousand ($42.50 per thousand
on cigars removed during 2000 or 2001)'' in paragraph (2) and
inserting ``$3.00 per cigar''.
(b) Cigarettes.--Section 5701(b) of such Code is amended--
(1) by striking ``$19.50 per thousand ($17 per thousand on
cigarettes removed during 2000 or 2001)'' in paragraph (1) and
inserting ``$50.00 per thousand'', and
(2) by striking ``$40.95 per thousand ($35.70 per thousand
on cigarettes removed during 2000 or 2001)'' in paragraph (2)
and inserting ``$105.00 per thousand''.
(c) Cigarette Papers.--Section 5701(c) of such Code is amended by
striking ``1.22 cents (1.06 cents on cigarette papers removed during
2000 or 2001)'' and inserting ``3.13 cents''.
(d) Cigarette Tubes.--Section 5701(d) of such Code is amended by
striking ``2.44 cents (2.13 cents on cigarette tubes removed during
2000 or 2001)'' and inserting ``6.26 cents''.
(e) Smokeless Tobacco.--Section 5701(e) of such Code is amended--
(1) by striking ``58.5 cents (51 cents on snuff removed
during 2000 or 2001)'' in paragraph (1) and inserting
``$1.50'', and
(2) by striking ``19.5 cents (17 cents on chewing tobacco
removed during 2000 or 2001)'' in paragraph (2) and inserting
``50 cents''.
(f) Pipe Tobacco.--Section 5701(f) of such Code is amended by
striking ``$1.0969 cents (95.67 cents on pipe tobacco removed during
2000 or 2001)'' and inserting ``$2.8126 cents''.
(g) Roll-Your-Own Tobacco.--Section 5701(g) of such Code is amended
by striking ``$1.0969 cents (95.67 cents on roll-your-own tobacco
removed during 2000 or 2001)'' and inserting ``$8.8889 cents''.
(h) Floor Stocks Taxes.--
(1) Imposition of tax.--On tobacco products (other than
cigars described in section 5701(a)(2) of the Internal Revenue
Code of 1986) and cigarette papers and tubes manufactured in or
imported into the United States which are removed before
January 1, 2009, and held on such date for sale by any person,
there is hereby imposed a tax in an amount equal to the excess
of--
(A) the tax which would be imposed under section
5701 of such Code on the article if the article had
been removed on such date, over
(B) the prior tax (if any) imposed under section
5701 of such Code on such article.
(2) Credit against tax.--Each person shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount
equal to $500. Such credit shall not exceed the amount of taxes
imposed by paragraph (1) on January 1, 2009, for which such
person is liable.
(3) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding tobacco
products, cigarette papers, or cigarette tubes on
January 1, 2009, to which any tax imposed by paragraph
(1) applies shall be liable for such tax.
(B) Method of payment.--The tax imposed by
paragraph (1) shall be paid in such manner as the
Secretary shall prescribe by regulations.
(C) Time for payment.--The tax imposed by paragraph
(1) shall be paid on or before April 1, 2009.
(4) Articles in foreign trade zones.--Notwithstanding the
Act of June 18, 1934 (commonly known as the Foreign Trade Zone
Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other
provision of law, any article which is located in a foreign
trade zone on January 1, 2009, shall be subject to the tax
imposed by paragraph (1) if--
(A) internal revenue taxes have been determined, or
customs duties liquidated, with respect to such article
before such date pursuant to a request made under the
1st proviso of section 3(a) of such Act, or
(B) such article is held on such date under the
supervision of an officer of the United States Customs
and Border Protection of the Department of Homeland
Security pursuant to the 2d proviso of such section
3(a).
(5) Definitions.--For purposes of this subsection--
(A) In general.--Any term used in this subsection
which is also used in section 5702 of the Internal
Revenue Code of 1986 shall have the same meaning as
such term has in such section.
(B) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury or the Secretary's delegate.
(6) Controlled groups.--Rules similar to the rules of
section 5061(e)(3) of such Code shall apply for purposes of
this subsection.
(7) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 5701 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply to the floor stocks taxes imposed by
paragraph (1), to the same extent as if such taxes were imposed
by such section 5701. The Secretary may treat any person who
bore the ultimate burden of the tax imposed by paragraph (1) as
the person to whom a credit or refund under such provisions may
be allowed or made.
(i) Effective Date.--The amendments made by this section shall
apply to articles removed (as defined in section 5702(j) of the
Internal Revenue Code of 1986) after December 31, 2009.
SEC. 6. ADMINISTRATIVE IMPROVEMENTS.
(a) Permit, Report, and Record Requirements for Manufacturers and
Importers of Processed Tobacco.--
(1) Permits.--
(A) Application.--Section 5712 of the Internal
Revenue Code of 1986 is amended by inserting ``or
processed tobacco'' after ``tobacco products''.
(B) Issuance.--Section 5713(a) of such Code is
amended by inserting ``or processed tobacco'' after
``tobacco products''.
(2) Inventories and reports.--
(A) Inventories.--Section 5721 of such Code is
amended by inserting ``, processed tobacco,'' after
``tobacco products''.
(B) Reports.--Section 5722 of such Code is amended
by inserting ``, processed tobacco,'' after ``tobacco
products''.
(3) Records.--Section 5741 of such Code is amended by
inserting ``, processed tobacco,'' after ``tobacco products''.
(4) Manufacturer of processed tobacco.--Section 5702 of
such Code is amended by adding at the end the following new
subsection:
``(p) Manufacturer of Processed Tobacco.--
``(1) In general.--The term `manufacturer of processed
tobacco' means any person who processes any tobacco other than
tobacco products.
``(2) Processed tobacco.--The processing of tobacco shall
not include the farming or growing of tobacco or the handling
of tobacco solely for sale, shipment, or delivery to a
manufacturer of tobacco products or processed tobacco.''.
(5) Conforming amendment.--Section 5702(k) of such Code is
amended by inserting ``, or any processed tobacco,'' after
``nontaxpaid tobacco products or cigarette papers or tubes''.
(6) Effective date.--The amendments made by this subsection
shall take effect on January 1, 2009.
(b) Basis for Denial, Suspension, or Revocation of Permits.--
(1) Denial.--Paragraph (3) of section 5712 of such Code is
amended to read as follows:
``(3) such person (including, in the case of a corporation,
any officer, director, or principal stockholder and, in the
case of a partnership, a partner)--
``(A) is, by reason of his business experience,
financial standing, or trade connections or by reason
of previous or current legal proceedings involving a
felony violation of any other provision of Federal
criminal law relating to tobacco products, cigarette
paper, or cigarette tubes, not likely to maintain
operations in compliance with this chapter,
``(B) has been convicted of a felony violation of
any provision of Federal or State criminal law relating
to tobacco products, cigarette paper, or cigarette
tubes, or
``(C) has failed to disclose any material
information required or made any material false
statement in the application therefor.''.
(2) Suspension or revocation.--Subsection (b) of section
5713 of such Code is amended to read as follows:
``(b) Suspension or Revocation.--
``(1) Show cause hearing.--If the Secretary has reason to
believe that any person holding a permit--
``(A) has not in good faith complied with this
chapter, or with any other provision of this title
involving intent to defraud,
``(B) has violated the conditions of such permit,
``(C) has failed to disclose any material
information required or made any material false
statement in the application for such permit,
``(D) has failed to maintain his premises in such
manner as to protect the revenue,
``(E) is, by reason of previous or current legal
proceedings involving a felony violation of any other
provision of Federal criminal law relating to tobacco
products, cigarette paper, or cigarette tubes, not
likely to maintain operations in compliance with this
chapter, or
``(F) has been convicted of a felony violation of
any provision of Federal or State criminal law relating
to tobacco products, cigarette paper, or cigarette
tubes,
the Secretary shall issue an order, stating the facts charged,
citing such person to show cause why his permit should not be
suspended or revoked.
``(2) Action following hearing.--If, after hearing, the
Secretary finds that such person has not shown cause why his
permit should not be suspended or revoked, such permit shall be
suspended for such period as the Secretary deems proper or
shall be revoked.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
(c) Application of Internal Revenue Code Statute of Limitations for
Alcohol and Tobacco Excise Taxes.--
(1) In general.--Section 514(a) of the Tariff Act of 1930
(19 U.S.C. 1514(a)) is amended by striking ``and section 520
(relating to refunds)'' and inserting ``section 520 (relating
to refunds), and section 6501 of the Internal Revenue Code of
1986 (but only with respect to taxes imposed under chapters 51
and 52 of such Code)''.
(2) Effective date.--The amendment made by this subsection
shall apply to articles imported after the date of the
enactment of this Act.
(d) Expansion of Definition of Roll-Your-Own Tobacco.--
(1) In general.--Section 5702(o) of the Internal Revenue
Code of 1986 is amended by inserting ``or cigars, or for use as
wrappers thereof'' before the period at the end.
(2) Effective date.--The amendment made by this subsection
shall apply to articles removed (as defined in section 5702(j)
of the Internal Revenue Code of 1986) after December 31, 2009.
(e) Time of Tax for Unlawfully Manufactured Tobacco Products.--
(1) In general.--Section 5703(b)(2) of such Code is amended
by adding at the end the following new subparagraph:
``(F) Special rule for unlawfully manufactured
tobacco products.--In the case of any tobacco products,
cigarette paper, or cigarette tubes produced in the
United States at any place other than the premises of a
manufacturer of tobacco products, cigarette paper, or
cigarette tubes that has filed the bond and obtained
the permit required under this chapter, tax shall be
due and payable immediately upon manufacture.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the date of the enactment of this Act.
SEC. 7. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Subparagraph (B) of section 401(1) of the Tax Increase Prevention
and Reconciliation Act of 2005 is amended by striking ``114.75
percent'' and inserting ``113.75 percent''.
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