(a) In general

Subpart II of part B of title XIX of the Public Health Service Act (42 U.S.C. 300x–21 et seq.) is amended by adding at the end the following:

1936. Prohibition on sale of certain products containing nitrous oxide

(a) In general

A funding agreement for a grant under section 1921 is that the State involved will have in effect, and implement, a prohibition on the sale of—

(1)

any product containing nitrous oxide that is scented or flavored; and

(2)

any other product containing nitrous oxide unless exempted pursuant to subsection (b).

(b) Exemptions

A State may exempt from the prohibition in subsection (a)(2) a product containing nitrous oxide that is not scented or flavored if such product is sold for use—

(1)

in medical, veterinary, or dental care;

(2)

as a propellant for a food product in a commercial kitchen;

(3)

in a manufacturing process or industrial operation; or

(4)

for an automotive purpose.

(c) Noncompliance

Before making a grant under section 1921 to a State, the Secretary shall determine whether the State is in compliance with subsection (a). If the Secretary determines that the State is not in compliance with such subsection, the Secretary shall reduce the amount of the allotment under section 1921 for the State for the fiscal year involved by an amount up to 10 percent of the amount determined under section 1933 for the State for the applicable fiscal year.

(b) Applicability date

Section 1936 of the Public Health Service Act, as added by subsection (a), applies beginning with the third fiscal year beginning after the date of enactment of this Act.