A bill to eliminate racketeering in the sale and distribution of cigarettes.

Prohibits commerce in contraband cigarettes.

Defines "contraband cigarettes" as a quantity of more than 20,000 cigarettes, bearing no evidence of payment of applicable State cigarette taxes, which are in the possession of any person other than (1) a person licensed by the State where the cigarettes are found or by the Internal Revenue Service, (2) a common or contract carrier, or (3) a government agent in the performance of duties.

Subjects dealers in cigarettes to such reporting requirements as the Secretary of the Treasury may prescribe.