,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #egba  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #cj1          
#bjbj,mrs4 ,bu/os introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,en]gy & ,comm]ce  ,a ,,bill  ,to apply 
us] fees ) respect to tobacco products  
deem$ subject to ! requirem5ts ( *apt]  
,,ix ( ! ,f$]al ,food1 ,drug1 &         
,cosmetic ,act4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,res\rces to       
,prev5t ,y\? ,vap+ ,act4  #b4 ,us] fees 
7a7 ,increase 9 total am\nt ,section    
#iai7;b77#a7 ( ! ,f$]al ,food1 ,drug1 & 
,cosmetic ,act 7#ba ,u4,s4,c4           
#chgs7b77#a77 is am5d$ by /rik+         
subp>agraph 7,k7 & ins]t+ ! foll[+      
subp>agraphs3  7,k7 ,= fiscal ye> #bjai1
 #gab1jjj1jjj4  7,l7 ,= fiscal ye>      
#bjbj1 #hab1jjj1jjj4  7,m7 ,= ea*       
subsequ5t fiscal ye>1 ! am\nt t 0       
applicable = ! previ\s fiscal ye>1      
adju/$ by ! total p]c5tage *ange t      
occurr$ 9 ! ,consum] ,price ,index = all
 urban consum]s 7all items2 ,unit$      

,/ates city av]age7 = ! #ab-mon? p]iod  
end+ ,june #cj prec$+ ! fiscal ye>4  4  
7b7 ,application ( us] fees to all      
classes ( tobacco products  7#a7 ,9     
g5]al ,subp>agraph 7,a7 ( section       
#iai7;b77#b7 ( ! ,f$]al ,food1 ,drug1 & 
,cosmetic ,act 7#ba ,u4,s4,c4           
#chgs7b77#b77 is am5d$ to read z foll[s3
  7,a7 ,9 g5]al  7i7 ,fiscal ye>s #bjbj 
& #bjba ,= fiscal ye>s #bjbj & #bjba1   
us] fees %all be assess$ & collect$ "u  
subsection 7a7 only ) respect to !      
classes ( tobacco products li/$ 9       
subp>agraph 7,b77i71 & ! total su* us]  
fees ) respect to ea* su* class %all be 
an am\nt t is equal to ! applicable     
p]c5tage ( ea* su* class = ! fiscal ye> 
multipli$ by ! am\nt specifi$ 9 p>agraph
 7#a7 = ! fiscal ye>4  7ii7 ,subsequ5t  
fiscal ye>s ,= fiscal ye> #bjbb & ea*   
subsequ5t fiscal ye>1 us] fees %all be  
assess$ & collect$ "u subsection 7a7 )  
respect to ea* class ( tobacco products 
to :i* ?is *apt] applies 7includ+       
tobacco products t ! ,secret>y by       

regulation deems to be subject to ?is   
*apt]71 & ! total us] fees ) respect to 
ea* su* class %all be--  7,i7 ) respect 
to ea* class ( tobacco products li/$ 9  
subp>agraph 7,b77i71 an am\nt t is      
calculat$ 9 ! same way z ! am\nts       
calculat$ = fiscal ye>s #bjbj & #bjba "u
 clause 7i71 except t = purposes (      
fiscal ye>s #bjbb & subsequ5t fiscal    
ye>s1 in/ead ( multiply+ ! applicable   
p]c5tage ( ea* su* class by ! am\nt     
specifi$ 9 p>agraph 7#a7 = ! fiscal ye>1
 ! applicable p]c5tage %all be multipli$
 by--  7aa7 ! am\nt specifi$ 9 p>agraph 
7#a7 = ! fiscal ye>1 r$uc$ by  7bb7 !   
total us] fees assess$ & collect$       
pursuant to subclause 7,,ii7 = ! fiscal 
ye>2 &  7,,ii7 ) respect to ea* class ( 
tobacco products to :i* ?is *apt]       
applies b :i* is n li/$ 9 subp>agraph   
7,b77i71 an am\nt det]m9$ pursuant to a 
=mula "u subp>agraph 7,c74  4  7#b7 ,o!r
 tobacco products ,section #iai7;b77#b7 
( ! ,f$]al ,food ,drug1 & ,cosmetic ,act
 7#ba ,u4,s4,c4 #chgs7b77#b771 z am5d$  

by p>agraph 7#a71 is fur!r am5d$ by add+
 at ! end ! foll[+ new subp>agraphs3    
7,c7 ,allocation = o!r tobacco products 
7i7 ,9 g5]al ,beg9n+ ) fiscal ye> #bjbb1
 ! total us] fees assess$ & collect$ "u 
subsection 7a7 ea* fiscal ye> ) respect 
to ea* class ( tobacco products n li/$ 9
 subp>agraph 7,b77i7 %all be an am\nt t 
is det]m9$ pursuant to a =mula develop$ 
by ! ,secret>y by regulation us+        
in=mation requir$ to be submitt$ "u     
subp>agraph 7,d74  7ii7 ,allocation =   
o!r tobacco products ,= ea* class (     
tobacco products n li/$ 9 subp>agraph   
7,b77i71 ! p]c5tage ( fees "u ! =mula "u
 clause 7i7 = ! respective fiscal ye>   
%all be equal to ! p]c5tage ( ! gross   
dome/ic sales 9 ! previ\s cal5d> ye> t  
is attributable to su* class ( tobacco  
products 9 su* cal5d> ye>1 z det]m9$ by 
! ,secret>y4  7iii7 ,allocation (       
assessm5t )9 ea* class ( o!r tobacco    
products ,! p]c5tage ( ! total us] fee  
to be paid by ea* manufactur] or import]
 ( tobacco products 9 a class n li/$ 9  

subp>agraph 7,b77i7 %all be det]m9$ by !
 ,secret>y1 bas$ on ! p]c5tage ( ! gross
 dome/ics sales ( all su* classes (     
tobacco products by all manufactur]s &  
import]s 9 ! previ\s cal5d> ye> t is    
attributable to su* manufactur] or      
import]4  7iv7 ,effect ( failure to     
f9alize =mula on "t ,if ! ,secret>y =   
any reason fails to f9alize by fiscal   
ye> #bjbb ! =mula requir$ by ?is        
subp>agraph = ! assessm5t & collection (
 us] fees = classes ( tobacco products n
 li/$ 9 subp>agraph 7,b77i7--  7,i7 !   
,secret>y %all cont9ue to assess &      
collect fees "u subsection 7a7 ) respect
 to ea* class ( tobacco products li/$ 9 
subp>agraph 7,b77i72 &  7,,ii7 until !  
fir/ fiscal ye> comm5c+ aft] !          
f9alization ( su* =mula1 ! exception    
describ$ 9 subp>agraph 7,a77ii77,i7 %all
 n apply4  7v7 ,revisions by regulation 
,any revisions to ! =mula promulgat$    
pursuant to ?is subp>agraph %all be by  
regulation4  7vi7 ,def9ition ,9 ?is     
subp>agraph1 ! t]m gross dome/ic sales  

means ! total value 9 doll>s ( ! sale or
 di/ribution by manufactur]s & import]s 
( tobacco products 9 ! ,unit$ ,/ates 9  
classes n li/$ 9 subp>agraph 7,b77i71 z 
det]m9$ bas$ on ! aggregation ( sales   
data f e manufactur] & import] ( tobacco
 products t submits sales data to !     
,secret>y4  7,d7 ,in=mation requir$ to  
be submitt$ ,ea* manufactur] or import] 
( any tobacco product %all submit to !  
,secret>y ! in=mation requir$ "u ?is    
subp>agraph by ,m>* #a1 #bjba1 = cal5d> 
ye> #bjbj1 by ,april #a1 #bjba1 = !     
p]iod ( ,janu>y #a1 #bjba1 ?r\gh ,m>*   
#cj1 #bjba1 & mon?ly !reaft]4 ,su*      
in=mation %all include--  7i7 !         
id5tification ( ! manufactur] or        
import]2  7ii7 ! class or classes (     
tobacco products sold by ! manufactur]  
or import]2  7iii7 ! full li/+ ( ! f9i%$
 tobacco products 9 a class n li/$ 9    
subp>agraph 7,b77i7 sold or di/ribut$ by
 ! manufactur] or import] 9 ! ,unit$    
,/ates2 &  7iv7 ! gross dome/ic sales   
data = ea* class ( f9i%$ tobacco        

products sold or di/ribut$ by !         
manufactur] or import] 9 ! ,unit$       
,/ates4  4  7#c7 ,prohibit$ act ,section
 #cja7q77#a77;,b7 ( ! ,f$]al ,food1     
,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4  
#cca7q77#a77;,b77 is am5d$ by ins]t+    
#iai7;b77#b77;,d71 be=e or #ibj4  7c7   
,allocation ( assessm5t )9 ea* class (  
tobacco product ,section #iai7;b77#d7 ( 
! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 
7#ba ,u4,s4,c4 #chgs7b77#d77 is am5d$ by
 /rik+ %all be ! p]c5tage det]m9$ =     
purposes ( allocations "u subsections   
7e7 ?r\gh 7h7 ( section #fbe ( ,public  
,law #ajh-ceg & ins]t+ %all be !        
p]c5tage det]m9$ by ! ,secret>y4  7d7   
,con=m+ am5dm5ts ,section #iai7;b7 ( !  
,f$]al ,food1 ,drug1 & ,cosmetic ,act   
7#ba ,u4,s4,c4 #chgs7b77 is am5d$-- 7#a7
 by /rik+ p>agraph 7#e72  7#b7 by       
r$esignat+ p>agraphs 7#f7 & 7#g7 z      
p>agraphs 7#e7 & 7#f71 respectively2 &  
7#c7 by am5d+ p>agraph 7#f71 z          
r$esignat$1 to read z foll[s3  7#f7     
,memor&um ( und]/&+ ,! ,secret>y %all   

reque/ ! appropriate ,f$]al ag5cy to    
ent] into a memor&um ( und]/&+ t        
provides = ! regul> & timely transf] f !
 head ( su* ag5cy to ! ,secret>y ( all  
necess>y in=mation reg>d+ all tobacco   
product manufactur]s & import]s requir$ 
to pay us] fees4 ,! ,secret>y %all      
ma9ta9 all disclosure re/rictions       
e/abli%$ by ! head ( su* ag5cy reg>d+ ! 
in=mation provid$ "u ! memor&um (       
und]/&+4  4  7e7 ,applicability ,!      
am5dm5ts made by subsections 7b71 7c71 &
 7d7 apply beg9n+ ) fiscal ye> #bjbb4   
,subject to ! am5dm5t made by subsection
 7a71 section #iai ( ! ,f$]al ,food1    
,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4  
#chgs71 z 9 effect on ! day be=e ! date 
( enactm5t ( ?is ,act1 %all apply )     
respect to fiscal ye>s prec$+ fiscal ye>
 #bjbb4  #c4 ,annual report  7a7 ,9     
g5]al ,= fiscal ye> #bjbj & ea*         
subsequ5t fiscal ye> = :i* fees are     
collect$ "u section #iai ( ! ,f$]al     
,food1 ,drug1 & ,cosmetic ,act 7#ba     
,u4,s4,c4 #chgs71 ! ,secret>y ( ,heal? &

 ,human ,s]vices1 act+ ?r\gh !          
,commission] ( ,food & ,drugs1 %all1 n  
lat] ?an #ahj days aft] ! end ( !       
respective fiscal ye> = :i* ! report is 
be+ prep>$1 submit to ! ,committee on   
,heal?1 ,education1 ,labor1 & ,p5sions &
 ! ,committee on ,appropriations ( !    
,s5ate1 & ! ,committee on ,en]gy &      
,comm]ce & ,committee on ,appropriations
 ( ! ,h\se ( ,repres5tatives1 an annual 
report ) respect to su* fees t conta9s !
 in=mation requir$ "u subsection 7b74   
7b7 ,requir$ in=mation ,ea* report      
submitt$ "u subsection 7a7 %all conta9 !
 foll[+ in=mation ) respect to ! fiscal 
ye> = :i* ! report is be+ submitt$3     
7#a7 ,a breakd[n ( ! am\nt exp5d$ by !  
,food & ,drug ,adm9i/ration on ea* ( !  
foll[+ activities3  7,a7 ,compliance &  
en=cem5t4  7,b7 ,public education       
campaigns4  7,c7 ,sci5tific rese>* &    
rese>* infra/ructure4  7,d7             
,communications4  7,e7 ,lead]%ip1       
managem5t1 ov]sight1 & adm9i/rative     
functions4  7,f7 ,relat$ ov]head        

activities4  7,g7 ,o!r activities4  7#b7
 ,details on ! am\nt exp5d$1 & ! purpose
 ( su* exp5ditures1 on ea* ( ! five     
l>ge/ exp5diture am\nts )9 ea* ( !      
categories describ$ 9 p>agraph 7#a74    
7#c7 ,a breakd[n ( ! am\nt exp5d$ on    
activities relat$ to deem$ tobacco      
products v]sus h[ mu* 0 exp5d$ on       
activities relat$ to combu/ible tobacco 
products outl9$ 9 ! pre-exi/+ categories
 ( tobacco products "u section #iai ( ! 
,f$]al ,food1 ,drug1 & ,cosmetic ,act   
7#ba ,u4,s4,c4 #chgs74  7#d7 ,an        
explanation = h[ ! ,food & ,drug        
,adm9i/ration ensures t ! am\nt ( us]   
fees allocat$ to public education       
campaigns on y\? e-cig>ette use &       
prev5tion is suffici5t to meet ! ne$ =  
education ( te5s & m9ors on ! dang]s (  
e-cig>ettes & o!r ,electronic ,nicot9e  
,deliv]y ,sy/ems 7,,ends74  7#e7 ,a li/ 
( ! /atus ( submitt$1 p5d+1 & approv$   
tobacco product applications = ea*      
regulatory pa?way & class ( tobacco     
product z def9$ by ! ,family ,smok+     

,prev5tion & ,tobacco ,control ,act     
7,public ,law #aaa-ca71 includ+         
subsequ5t regulations1 = ! #c-;fiscal   
ye> p]iod prec$+ ! fiscal ye> = :i* !   
report is be+ prep>$4  7#f7 ,:5         
applicable1 a breakd[n ( ! am\nt or us] 
fees collect$ "u ! am5dm5ts made by ?is 
,act f manufactur]s ( deem$ tobacco     
products & ! am\nt collect$ f           
manufactur]s ( ea* ( ! orig9al pre-exi/+
 categories ( tobacco products "u       
section #iai ( ! ,f$]al ,food1 ,drug1 & 
,cosmetic ,act 7#ba ,u4,s4,c4 #chgs74