HR 6791 IHCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

August 1, 2008CommentsClose CommentsPermalink

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 concernedCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘National Cancer Fund Act of 2008’.CommentsClose CommentsPermalink

SEC. 2. PURPOSES.

The purposes of this Act are--CommentsClose CommentsPermalink





(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,CommentsClose CommentsPermalink





(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, andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Expenditures From National Cancer Fund- Amounts in the National Cancer Fund shall be available, as provided by appropriation Acts, for making expenditures for--CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(5) expansion of colorectal cancer early detection and treatment programs to cover men and women who do not otherwise have access to health care,CommentsClose CommentsPermalink





‘(6) development and expansion of early detection and treatment programs to cover men and women who do not otherwise have access to health care,CommentsClose CommentsPermalink





‘(7) expansion of access to cancer-related clinical trials and health care for underserved and underinsured populations,CommentsClose CommentsPermalink





‘(8) increased access for federally sponsored cancer clinical trials,CommentsClose CommentsPermalink





‘(9) implementation of a nationwide tobacco cessation program, andCommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(11) development and expansion of the cancer workforce, andCommentsClose CommentsPermalink





‘(12) other such cancer-related activities as deemed appropriate.’.CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of sections for such subchapter A is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 9511. National Cancer Fund.’.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(a) Membership-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Duties- Section 415(b) of the Public Health Service Act (42 U.S.C. 285a-4) is amended to read as follows:CommentsClose CommentsPermalink





‘(b) Duties-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(c) Alternative Funding Sources for National Cancer Fund-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’CommentsClose CommentsPermalink

SEC. 5. INCREASE IN EXCISE TAX RATE ON TOBACCO PRODUCTS.

(a) Cigars- Section 5701(a) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(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’,CommentsClose CommentsPermalink





(2) by striking ‘20.719 percent (18.063 percent on cigars removed during 2000 or 2001)’ in paragraph (2) and inserting ‘52.988 percent’, andCommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(b) Cigarettes- Section 5701(b) of such Code is amended--CommentsClose CommentsPermalink





(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’, andCommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(e) Smokeless Tobacco- Section 5701(e) of such Code is amended--CommentsClose CommentsPermalink





(1) by striking ‘58.5 cents (51 cents on snuff removed during 2000 or 2001)’ in paragraph (1) and inserting ‘$1.50’, andCommentsClose CommentsPermalink





(2) by striking ‘19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)’ in paragraph (2) and inserting ‘50 cents’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(h) Floor Stocks Taxes-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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, overCommentsClose CommentsPermalink





(B) the prior tax (if any) imposed under section 5701 of such Code on such article.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) LIABILITY FOR TAX AND METHOD OF PAYMENT-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) METHOD OF PAYMENT- The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.CommentsClose CommentsPermalink





(C) TIME FOR PAYMENT- The tax imposed by paragraph (1) shall be paid on or before April 1, 2009.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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, orCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(5) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury or the Secretary’s delegate.CommentsClose CommentsPermalink





(6) CONTROLLED GROUPS- Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 6. ADMINISTRATIVE IMPROVEMENTS.

(a) Permit, Report, and Record Requirements for Manufacturers and Importers of Processed Tobacco-CommentsClose CommentsPermalink





(1) PERMITS-CommentsClose CommentsPermalink





(A) APPLICATION- Section 5712 of the Internal Revenue Code of 1986 is amended by inserting ‘or processed tobacco’ after ‘tobacco products’.CommentsClose CommentsPermalink





(B) ISSUANCE- Section 5713(a) of such Code is amended by inserting ‘or processed tobacco’ after ‘tobacco products’.CommentsClose CommentsPermalink





(2) INVENTORIES AND REPORTS-CommentsClose CommentsPermalink





(A) INVENTORIES- Section 5721 of such Code is amended by inserting ‘, processed tobacco,’ after ‘tobacco products’.CommentsClose CommentsPermalink





(B) REPORTS- Section 5722 of such Code is amended by inserting ‘, processed tobacco,’ after ‘tobacco products’.CommentsClose CommentsPermalink





(3) RECORDS- Section 5741 of such Code is amended by inserting ‘, processed tobacco,’ after ‘tobacco products’.CommentsClose CommentsPermalink





(4) MANUFACTURER OF PROCESSED TOBACCO- Section 5702 of such Code is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(p) Manufacturer of Processed Tobacco-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘manufacturer of processed tobacco’ means any person who processes any tobacco other than tobacco products.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(6) EFFECTIVE DATE- The amendments made by this subsection shall take effect on January 1, 2009.CommentsClose CommentsPermalink





(b) Basis for Denial, Suspension, or Revocation of Permits-CommentsClose CommentsPermalink





(1) DENIAL- Paragraph (3) of section 5712 of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(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)--CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(C) has failed to disclose any material information required or made any material false statement in the application therefor.’.CommentsClose CommentsPermalink





(2) SUSPENSION OR REVOCATION- Subsection (b) of section 5713 of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(b) Suspension or Revocation-CommentsClose CommentsPermalink





‘(1) SHOW CAUSE HEARING- If the Secretary has reason to believe that any person holding a permit--CommentsClose CommentsPermalink





‘(A) has not in good faith complied with this chapter, or with any other provision of this title involving intent to defraud,CommentsClose CommentsPermalink





‘(B) has violated the conditions of such permit,CommentsClose CommentsPermalink





‘(C) has failed to disclose any material information required or made any material false statement in the application for such permit,CommentsClose CommentsPermalink





‘(D) has failed to maintain his premises in such manner as to protect the revenue,CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(c) Application of Internal Revenue Code Statute of Limitations for Alcohol and Tobacco Excise Taxes-CommentsClose CommentsPermalink





(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)’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to articles imported after the date of the enactment of this Act.CommentsClose CommentsPermalink





(d) Expansion of Definition of Roll-Your-Own Tobacco-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(e) Time of Tax for Unlawfully Manufactured Tobacco Products-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 5703(b)(2) of such Code is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

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’.CommentsClose CommentsPermalink