SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Tobacco Trust Fund Act of 
1998''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) A consensus exists within the scientific and medical 
        communities that tobacco products are inherently dangerous and 
        cause cancer, heart disease, emphysema, and other serious 
        illnesses.
            (2) Tobacco advertising and marketing has for decades 
        contributed significantly to the use of tobacco products by 
        adolescents and young adults, and, particularly, members of the 
        Nation's uniformed services.
            (3) Reliable studies indicate that 75 percent of World War 
        II veterans began smoking as young adults, and today large 
        numbers of veterans are smokers.
            (4) Smoking related illnesses are highly prevalent among 
        the more than 3,000,000 veterans who use the Department of 
        Veterans Affairs health care system annually.
            (5) The Department of Veterans Affairs estimates that it 
        spent $3,600,000,000 in 1997 to treat smoking-related illnesses 
        and that over the next five years it will spend $20,000,000,000 
        on such care.
            (6) Congress established the Department of Veterans Affairs 
        in furtherance of its constitutional power to provide for the 
        national defense in order to provide benefits and services to 
        veterans of the uniformed services.
            (7) There is in the Department of Veterans Affairs a health 
        care system which has as its primary function to provide a 
        complete medical and hospital service for the medical care and 
        treatment of such veterans as can be served through available 
        appropriations.
            (8) The sale, distribution, marketing, advertising, and use 
        of tobacco products has substantially and adversely impaired 
        the ability of the Department of Veterans Affairs to carry out 
        its health care mission because of the prevalence of smoking-
        related illnesses among veterans.
            (9) The Federal Government, including the Department of 
        Veterans Affairs, has lacked the means to prevent the onset of 
        smoking-related illnesses among veterans and has had no 
        authority to deny needed treatment to any veteran on the basis 
        that an illness is or might be smoking-related.
            (10) With some 20 percent of its health care budget 
        absorbed in treating smoking-related illnesses, the Department 
        of Veterans Affairs health care system has lacked resources to 
        provide needed nursing home care, home care, community-based 
        ambulatory care, and other services to tens of thousands of 
        other veterans.
            (11) The network of academically affiliated medical centers 
        of the Department of Veterans Affairs provides a unique system 
        within which outstanding medical research is conducted and 
        which has the potential to expand significantly ongoing 
        research on tobacco-related illnesses.
            (12) It is in the public interest for Congress to enact 
        legislation requiring that a portion of any amounts received 
        from manufacturers of tobacco products be used to meet the 
        costs of (A) treatment for diseases and adverse health effects 
        associated with the use of tobacco products by those who served 
        their country in uniform, and (B) medical and health services 
        research relating to prevention and treatment of, and 
        rehabilitation from, tobacco addiction and diseases associated 
        with tobacco use.

SEC. 3. ESTABLISHMENT OF TRUST FUND.

    (a) In General.--Chapter 17 of title 38, United States Code, is 
amended by inserting after section 1729A the following new section:
``Sec. 1729B. Veterans Tobacco Trust Fund
    ``(a) There is established in the Treasury of the United States a 
trust fund to be known as the `Veterans Tobacco Trust Fund', consisting 
of such amounts as may be appropriated, credited, or donated to the 
trust fund.
    ``(b) If a law is enacted that provides for the allocation of funds 
received from tobacco product manufacturers for programs to reduce use 
of tobacco products by minors and for health-care research, among other 
purposes, there shall be credited to the trust fund from amounts 
received by the United States pursuant to that law, without further 
appropriation, the amount of $3,000,000,000.
    ``(c) Amounts in the trust fund shall be available, without fiscal 
year limitation, to the Secretary of Veterans Affairs for the following 
purposes:
            ``(1) Furnishing medical care and services under this 
        chapter, to be available during any fiscal year for the same 
        purposes and subject to the same limitations (other than with 
        respect to the period of availability for obligation) as apply 
        to amounts appropriated from the general fund of the Treasury 
        for that fiscal year for medical care.
            ``(2) Conducting medical research, rehabilitation research, 
        and health systems research, with particular emphasis on 
        research relating to prevention and treatment of, and 
        rehabilitation from, tobacco addiction and diseases associated 
        with tobacco use.''.
    (b) Clerical Amendment.-- The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1729A the following new item:

``Sec. 1729B. Veterans Tobacco Trust Fund.''.
Veterans Tobacco Trust Fund Act of 1998 - Establishes in the Treasury the Veterans Tobacco Trust Fund.  Provides that if a law is enacted that provides for the allocation of funds received from tobacco product manufacturers for programs to reduce the use of tobacco products by minors and for health-care research, then there shall be credited to the Fund, without further appropriation, the amount of $3 billion. 
Makes such amount available to the Secretary of Veterans Affairs for:  (1) furnishing veterans' medical care and services; and (2) conducting medical, rehabilitation, and health systems research, with particular emphasis on research relating to the prevention and treatment of, and rehabilitation from, tobacco addiction and diseases associated with tobacco use.
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