SALE OF TOBACCO PRODUCTS TO INDIVIDUALS UNDER THE AGE OF 21.

SEC. 604. SALE OF TOBACCO PRODUCTS TO INDIVIDUALS UNDER THE AGE OF 21. (a) In General.—Section 1926 of the Public Health Service Act (42 U.S.C. 300x-26) is amended— (1) in the heading— (A) by striking “state law regarding”; and (B) by striking “18” and inserting “21”; (2) by striking subsections (a) and (d); (3) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively; (4) by amending subsection (a), as so redesignated, to read as follows: “(a) In General.—A funding agreement for a grant under section 1921 is that the State involved will— “(1) annually conduct random, unannounced inspections to ensure that retailers do not sell tobacco products to individuals under the age of 21; and “(2) annually submit to the Secretary a report describing— “(A) the activities carried out by the State to ensure that retailers do not sell tobacco products to individuals under the age of 21; “(B) the extent of success the State has achieved in ensuring that retailers do not sell tobacco products to individuals under the age of 21; and “(C) the strategies to be utilized by the State to ensure that retailers do not sell tobacco products to individuals under the age of 21 during the fiscal year for which the grant is sought.” ; (5) in subsection (b), as so redesignated— (A) by striking paragraphs (1), (2), (3), and (4); (B) by striking “Before making” and inserting the following: “(1) In general.—Before making” ; (C) by striking “for the first applicable fiscal year or any subsequent fiscal year”; (D) by striking “subsections (a) and (b)” and inserting “subsection (a)”; (E) by striking “equal to—” and inserting “up to 10 percent of the amount determined under section 1933 for the State for the applicable fiscal year.”; and (F) by adding at the end the following: “(2) Limitation.— “(A) In general.—A State shall not have funds withheld pursuant to paragraph (1) if such State for which the Secretary has made a determination of noncompliance under such paragraph— “(i) certifies to the Secretary by May 1 of the fiscal year for which the funds are appropriated, consistent with subparagraph (B), that the State will commit additional State funds, in accordance with paragraph (1), to ensure that retailers do not sell tobacco products to individuals under 21 years of age; “(ii) agrees to comply with a negotiated agreement for a corrective action plan that is approved by the Secretary and carried out in accordance with guidelines issued by the Secretary; or “(iii) is a territory that receives less than $1,000,000 for a fiscal year under section 1921. “(B) Certification.— “(i) In general.—The amount of funds to be committed by a State pursuant to subparagraph (A)(i) shall be equal to 1 percent of such State’s substance abuse allocation determined under section 1933 for each percentage point by which the State misses the retailer compliance rate goal established by the Secretary. “(ii) State expenditures.—For a fiscal year in which a State commits funds as described in clause (i), such State shall maintain State expenditures for tobacco prevention programs and for compliance activities at a level that is not less than the level of such expenditures maintained by the State for the preceding fiscal year, plus the additional funds for tobacco compliance activities required under clause (i). The State shall submit a report to the Secretary on all State obligations of funds for such fiscal year and all State expenditures for the preceding fiscal year for tobacco prevention and compliance activities by program activity by July 31 of such fiscal year. “(iii) Discretion.—The Secretary shall exercise discretion in enforcing the timing of the State obligation of the additional funds required by the certification described in subparagraph (A)(i) as late as July 31 of such fiscal year. “(C) Failure to certify.—If a State described in subparagraph (A) fails to certify to the Secretary pursuant to subparagraph (A)(i) or enter into, or comply with, a negotiated agreement under subparagraph (A)(ii), the Secretary may take action pursuant to paragraph (1).” ; and (6) by adding at the end the following: “(c) Implementation of Reporting Requirements.— “(1) Transition period.—The Secretary shall— “(A) not withhold amounts under subsection (b) for the 3-year period immediately following the date of enactment of division N of the Further Consolidated Appropriations Act, 2020; and “(B) use discretion in exercising its authority under subsection (b) during the 2-year period immediately following the 3-year period described in subparagraph (A), to allow for a transition period for implementation of the reporting requirements under subsection (a)(2). “(2) Regulations or guidance.—Not later than 180 days after the date of enactment of division N of the Further Consolidated Appropriations Act, 2020, the Secretary shall update regulations under part 96 of title 45, Code of Federal Regulations or guidance on the retailer compliance rate goal under subsection (b), the use of funds provided under section 1921 for purposes of meeting the requirements of this section, and reporting requirements under subsection (a)(2). “(3) Coordination.—The Secretary shall ensure the Assistant Secretary for Mental Health and Substance Use coordinates, as appropriate, with the Commissioner of Food and Drugs to ensure that the technical assistance provided to States under subsection (e) is consistent with applicable regulations for retailers issued under part 1140 of title 21, Code of Federal Regulations. “(d) Transitional Grants.— “(1) In general.—The Secretary shall award grants under this subsection to each State that receives funding under section 1921 to ensure compliance of each such State with this section. “(2) Use of funds.—A State receiving a grant under this subsection— “(A) shall use amounts received under such grant for activities to plan for or ensure compliance in the State with subsection (a); and “(B) in the case of a State for which the Secretary has made a determination under subsection (b) that the State is prepared to meet, or has met, the requirements of subsection (a), may use such funds for tobacco cessation activities, strategies to prevent the use of tobacco products by individuals under the age of 21, or allowable uses under section 1921. “(3) Supplement not supplant.—Grants under this subsection shall be used to supplement and not supplant other Federal, State, and local public funds provided for activities under paragraph (2). “(4) Authorization of appropriations.—To carry out this subsection, there are authorized to be appropriated $18,580,790 for each of fiscal years 2020 through 2024. “(5) Sunset.—This subsection shall have no force or effect after September 30, 2024. “(e) Technical Assistance.—The Secretary shall provide technical assistance to States related to the activities required under this section.” . (b) Report to Congress.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the status of implementing the requirements of section 1926 of the Public Health Service Act (42 U.S.C. 300x-26), as amended by subsection (a), and a description of any technical assistance provided under subsection (e) of such section, including the number of meetings requested and held related to technical assistance. (c) Conforming Amendment.—Section 212 of division D of the Consolidated Appropriations Act, 2010 (Public Law 111-117) is repealed.