[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1310 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1310

To provide market transition assistance for tobacco producers, tobacco 
                industry workers, and their communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 23, 1997

  Mr. Ford (for himself, Mr. Helms, Mr. Faircloth, Mr. McConnell, Mr. 
Cleland, Mr. Hollings, and Mr. Thurmond) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To provide market transition assistance for tobacco producers, tobacco 
                industry workers, and their communities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Long-Term Economic 
Assistance for Farmers Act'' or the ``LEAF Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
          TITLE I--TOBACCO COMMUNITY REVITALIZATION TRUST FUND

Sec. 101. Establishment of Trust Fund.
Sec. 102. Contributions by tobacco product manufacturers and importers.
          TITLE II--AGRICULTURAL MARKET TRANSITION ASSISTANCE

Sec. 201. Payments for lost tobacco quota.
Sec. 202. Industry payments for all Department costs associated with 
                            tobacco production.
Sec. 203. Tobacco community economic development grants.
Sec. 204. Modifications in Federal tobacco programs.
           TITLE III--FARMER AND WORKER TRANSITION ASSISTANCE

Sec. 301. Tobacco worker transition program.
Sec. 302. Farmer opportunity grants.
                           TITLE IV--IMMUNITY

Sec. 401. General immunity for tobacco producers and warehousers.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Active tobacco producer.--The term ``active tobacco 
        producer'' means a quota holder, quota lessee, or quota tenant.
            (2) Quota holder.--The term ``quota holder'' means a 
        producer that owns a farm for which a tobacco farm marketing 
        quota or farm acreage allotment was established under the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for 
        any of the 1994, 1995, or 1996 crop years.
            (3) Quota lessee.--The term ``quota lessee'' means--
                    (A) a producer that owns a farm that produced 
                tobacco pursuant to a lease and transfer to that farm 
                of all or part of a tobacco farm marketing quota or 
                farm acreage allotment established under the 
                Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et 
                seq.) for any of the 1994, 1995, or 1996 crop years; or
                    (B) a producer that rented land from a farm 
                operator to produce tobacco under a tobacco farm 
                marketing quota or farm acreage allotment established 
                under the Agricultural Adjustment Act of 1938 (7 U.S.C. 
                1281 et seq.) for any of the 1994, 1995, or 1996 crop 
                years.
            (4) Quota tenant.--The term ``quota tenant'' means a 
        producer who--
                    (A) is the principal producer, as determined by the 
                Secretary, of tobacco on a farm where tobacco is 
                produced pursuant to a tobacco farm marketing quota or 
                farm acreage allotment established under the 
                Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et 
                seq.) for any of the 1994, 1995, or 1996 crop years; 
                and
                    (B) is not a quota holder or quota lessee.
            (5) Secretary.--The term ``Secretary'' means--
                    (A) in titles I and II, the Secretary of 
                Agriculture; and
                    (B) in section 301, the Secretary of Labor.
            (6) Tobacco product importer.--The term ``tobacco product 
        importer'' has the meaning given the term ``importer'' in 
        section 5702 of the Internal Revenue Code of 1986.
            (7) Tobacco product manufacturer.--
                    (A) In general.--The term ``tobacco product 
                manufacturer'' has the meaning given the term 
                ``manufacturer of tobacco products'' in section 5702 of 
                the Internal Revenue Code of 1986.
                    (B) Exclusion.--The term ``tobacco product 
                manufacturer'' does not include a person that 
                manufactures cigars or pipe tobacco.
            (8) Trust fund.--The term ``Trust Fund'' means the Tobacco 
        Community Revitalization Trust Fund established under section 
        101.

          TITLE I--TOBACCO COMMUNITY REVITALIZATION TRUST FUND

SEC. 101. ESTABLISHMENT OF TRUST FUND.

    (a) In General.--There is established in the Treasury of the United 
States a trust fund to be known as the ``Tobacco Community 
Revitalization Trust Fund'', consisting of such amounts as may be 
appropriated or credited to the Trust Fund. The Trust Fund shall be 
administered by the Secretary.
    (b) Transfers to Trust Fund.--There are appropriated and 
transferred to the Trust Fund for each fiscal year--
            (1) amounts contributed by tobacco product manufacturers 
        and tobacco product importers under section 102; and
            (2) amounts made available to the Trust Fund out of funds 
        allocated through national tobacco settlement legislation.
    (c) Repayable Advances.--
            (1) Authorization.--There are authorized to be appropriated 
        to the Trust Fund, as repayable advances, such sums as may from 
        time to time be necessary to make expenditures under subsection 
        (d).
            (2) Repayment with interest.--Repayable advances made to 
        the Trust Fund shall be repaid, and interest on the advances 
        shall be paid, to the general fund of the Treasury when the 
        Secretary of the Treasury determines that moneys are available 
        in the Trust Fund to make the payments.
            (3) Rate of interest.--Interest on an advance made under 
        this subsection shall be at a rate determined by the Secretary 
        of Treasury (as of the close of the calendar month preceding 
        the month in which the advance is made) that is equal to the 
        current average market yield on outstanding marketable 
        obligations of the United States with remaining period to 
        maturity comparable to the anticipated period during which the 
        advance will be outstanding.
    (d) Expenditures From Trust Fund.--Amounts in the Trust Fund shall 
be available for making expenditures after October 1, 1998, to meet 
those necessary obligations of the Federal Government that are 
authorized to be paid under--
            (1) section 201 for payments for lost tobacco quota for 
        each of fiscal years 1999 through 2023, but not to exceed 
        $1,600,000,000 for any fiscal year except to the extent the 
        payments are made in accordance with section 201(j);
            (2) section 202 for industry payments for all costs of the 
        Department of Agriculture associated with the production of 
        tobacco;
            (3) section 203 for tobacco community economic development 
        grants, but not to exceed--
                    (A) $400,000,000 for each of fiscal years 1999 
                through 2008, less any amount required to be paid under 
                section 202 for the fiscal year; and
                    (B) $450,000,000 for each of fiscal year 2009 
                through 2023, less any amount required to be paid under 
                section 202 during the fiscal year;
            (4) section 301 for assistance provided under the tobacco 
        worker transition program, but not to exceed $50,000,000 for 
        any fiscal year; and
            (5) subpart 9 of part A of title IV of the Higher Education 
        Act of 1965 for farmer opportunity grants, but not to exceed--
                    (A) $42,500,000 for each of the academic years 
                1999-2000 through 2003-2004;
                    (B) $50,000,000 for each of the academic years 
                2004-2005 through 2008-2009;
                    (C) $57,500,000 for each of the academic years 
                2009-2010 through 2013-2014;
                    (D) $65,000,000 for each of the academic years 
                2014-2015 through 2018-2019; and
                    (E) $72,500,000 for each of the academic years 
                2019-2020 through 2023-2024.
    (e) Budgetary Treatment.--This section constitutes budget authority 
in advance of appropriations Acts and represents the obligation of the 
Federal Government to provide payments to States and eligible persons 
in accordance with this Act.

SEC. 102. CONTRIBUTIONS BY TOBACCO PRODUCT MANUFACTURERS AND IMPORTERS.

    (a) Definition of Market Share.--In this section, the term ``market 
share'' means the ratio of--
            (1) the tax liability of a tobacco product manufacturer or 
        tobacco product importer (as defined in section 2) for a 
        calendar year under section 5703 of the Internal Revenue Code 
        of 1986; to
            (2) the tax liability of all tobacco product manufacturers 
        or tobacco product importers (as defined in section 2) for the 
        calendar year under section 5703 of the Internal Revenue Code 
        of 1986.
    (b) Determinations.--Not later than September 30 of each fiscal 
year, the Secretary of the Treasury shall--
            (1) determine--
                    (A) the market share of each tobacco product 
                manufacturer or tobacco product importer during the 
                most recent calendar year;
                    (B) the total amount of assessments payable for the 
                subsequent fiscal year under subsection (c); and
                    (C) the amount of an assessment payable by the 
                tobacco product manufacturer or tobacco product 
                importer for the fiscal year under subsection (d); and
            (2) notify each tobacco product manufacturer and tobacco 
        product importer of the determinations made under paragraph (1) 
        with respect to the manufacturer or importer.
    (c) Total Amount of Assessments.--
            (1) In general.--The total amount of assessments payable by 
        all tobacco product manufacturers and tobacco product importers 
        into the Trust Fund for a fiscal year shall be equal to--
                    (A) the amount of the contribution to the Trust 
                Fund for the fiscal year required under paragraph (2); 
                less
                    (B) any amount made available during the preceding 
                fiscal year to the Trust Fund out of funds allocated 
                through national tobacco settlement legislation.
            (2) Trust fund contributions.--The amount of the 
        contribution to the Trust Fund shall be--
                    (A) $2,100,000,000 for each of fiscal years 1999 
                through 2008;
                    (B) $500,000,000 for each of fiscal years 2009 
                through 2023; and
                    (C) for fiscal year 2024 and each subsequent fiscal 
                year, the amount payable under section 202.
    (d) Individual Amount of Assessments.--The amount of an assessment 
payable by each tobacco product manufacturer and tobacco product 
importer into the Trust Fund for a fiscal year shall be equal to the 
product obtained by multiplying--
            (1) the total amount of assessments payable by all tobacco 
        product manufacturers and tobacco product importers for the 
        fiscal year under subsection (c); by
            (2) the market share of the tobacco product manufacturer or 
        tobacco product importer during the most recent calendar year 
        determined under subsection (b)(1)(A).

          TITLE II--AGRICULTURAL MARKET TRANSITION ASSISTANCE

SEC. 201. PAYMENTS FOR LOST TOBACCO QUOTA.

    (a) In General.--Beginning with the 1999 marketing year, the 
Secretary shall make payments for lost tobacco quota to eligible quota 
holders, quota lessees, and quota tenants as reimbursement for lost 
tobacco quota as a result of a decrease in demand for domestically 
produced tobacco.
    (b) Eligibility.--To be eligible to receive payments under this 
section, a quota holder, quota lessee, or quota tenant shall--
            (1) prepare and submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require, including information sufficient to 
        make the demonstration required under paragraph (2); and
            (2) demonstrate to the satisfaction of the Secretary that, 
        with respect to the 1996 marketing year--
                    (A) the producer was a quota holder and realized 
                income from the production of tobacco through--
                            (i) the active production of tobacco;
                            (ii) the lease and transfer of tobacco 
                        quota to another farm;
                            (iii) the rental of all or part of the farm 
                        of the quota holder, including the right to 
                        produce tobacco, to another tobacco producer; 
                        or
                            (iv) the hiring of a quota tenant to 
                        produce tobacco;
                    (B) the producer was a quota lessee; or
                    (C) the producer was a quota tenant.
    (c) Base Quota Level.--
            (1) In general.--The Secretary shall determine, for each 
        quota holder, quota lessee, and quota tenant, the base quota 
        level for the 1994 through 1996 marketing years.
            (2) Quota holders.--The base quota level for a quota holder 
        shall be equal to the average tobacco farm marketing quota 
        established for the farm owned by the quota holder for the 1994 
        through 1996 marketing years.
            (3) Quota lessees.--The base quota level for a quota lessee 
        shall be equal to--
                    (A) 50 percent of the average number of pounds of 
                tobacco quota established for a farm for the 1994 
                through 1996 marketing years--
                            (i) that was leased and transferred to a 
                        farm owned by the quota lessee; or
                            (ii) for which the rights to produce the 
                        tobacco were rented to the quota lessee; less
                    (B) 25 percent of the average number of pounds of 
                tobacco quota described in paragraph (A) for which a 
                quota tenant was the principal producer of the tobacco 
                quota.
            (4) Quota tenants.--The base quota level for a quota tenant 
        shall be equal to the sum of--
                    (A) 50 percent of the average number of pounds of 
                tobacco quota established for a farm for the 1994 
                through 1996 marketing years--
                            (i) that was owned by a quota holder; and
                            (ii) for which the quota tenant was the 
                        principal producer of the tobacco on the farm; 
                        and
                    (B) 25 percent of the average number of pounds of 
                tobacco quota for the 1994 through 1996 marketing 
                years--
                            (i)(I) that was leased and transferred to a 
                        farm owned by the quota lessee; or
                            (II) for which the rights to produce the 
                        tobacco were rented to the quota lessee; and
                            (ii) for which the quota tenant was the 
                        principal producer of the tobacco on the farm.
            (5) Marketing quotas other than poundage quotas.--For each 
        kind of tobacco for which there is a marketing quota or 
        allotment (on an acreage basis), the base quota level for each 
        quota holder, quota lessee, or quota tenant shall be determined 
        in accordance with this subsection (based on a poundage 
        conversion) in an amount equal to the product obtained by 
        multiplying--
                    (A) the average tobacco farm marketing quota or 
                allotment for the 1994 through 1996 marketing years; by
                    (B) the average county yield per acre for the 
                county in which the farm is located for the kind of 
                tobacco for the marketing years.
    (d) Payments.--Except as otherwise provided in this section, during 
any marketing year in which the national marketing quota for a kind of 
tobacco is less than the average national marketing quota level for the 
kind of tobacco for the 1994 through 1996 marketing years, the 
Secretary shall make payments for lost tobacco quota to each quota 
holder, quota lessee, and quota tenant that is eligible under 
subsection (b) in an amount that is equal to the product obtained by 
multiplying--
            (1) the percentage by which the national marketing quota 
        for the kind of tobacco is less than the average national 
        marketing quota level for the kind of tobacco for the 1994 
        through 1996 marketing years; by
            (2) the base quota level for the quota holder, quota 
        lessee, or quota tenant; by
            (3) $4 per pound.
    (e) Lifetime Limitation on Payments.--Except as otherwise provided 
in this section, the total amount of payments made under this section 
to a quota holder, quota lessee, or quota tenant during the lifetime of 
the holder, lessee, or tenant shall not exceed the product obtained by 
multiplying--
            (1) the base quota level for the quota holder, quota 
        lessee, or quota tenant; by
            (2) $8 per pound.
    (f) Limitations on Aggregate Annual Payments.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the total amount payable under this section for any 
        marketing year shall not exceed $1,600,000,000.
            (2) Accelerated payments.--Paragraph (1) shall not apply if 
        accelerated payments for lost tobacco quota are made in 
        accordance with subsection (j).
            (3) Reductions.--If the amount determined under subsection 
        (d) for a marketing year exceeds the amount described in 
        paragraph (1), the Secretary shall make a pro rata reduction in 
        the amounts payable to quota holders, quota lessees, and quota 
        tenants under this section to ensure that the total amount of 
        the payments for lost tobacco quota does not exceed the 
        limitation established under paragraph (1).
            (4) Rollover of payments for lost tobacco quota.--Subject 
        to paragraph (1), if the Secretary makes a reduction in 
        accordance with paragraph (3), the amount of the reduction 
        shall be applied to the next marketing year and added to the 
        payments for lost tobacco for the marketing year.
    (g) Subsequent Sale and Transfer of Quota.--Effective beginning 
January 1, 1999, on the sale and transfer of a farm marketing quota 
under section 316(g) or 319(g) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1314b(g), 1314e(g))--
            (1) the person who sold and transferred the quota shall 
        have--
                    (A) the base quota level attributable to the person 
                reduced by the base quota level attributable to the 
                quota that is sold and transferred; and
                    (B) the lifetime limitation on payments established 
                under subsection (e) attributable to the person reduced 
                by the product obtained by multiplying--
                            (i) the base quota level attributable to 
                        the quota; by
                            (ii) $8 per pound; and
            (2) the person who acquired the quota shall have--
                    (A) the base quota level attributable to the person 
                increased by the base quota level attributable to the 
                quota that was sold and transferred; and
                    (B) the lifetime limitation on payments established 
                under subsection (e) attributable to the person--
                            (i) increased by the product obtained by 
                        multiplying--
                                    (I) the base quota level 
                                attributable to the quota; by
                                    (II) $8 per pound; but
                            (ii) decreased by any payments for lost 
                        tobacco quota previously made that are 
                        attributable to the quota that was sold and 
                        transferred.
    (h) Sale or Transfer of Farm.--On the sale or transfer of ownership 
of a farm that is owned by a quota holder, the base quota level 
established under subsection (c), the right to payments under 
subsection (d), and the lifetime limitation on payments established 
under subsection (e) shall transfer to the new owner of the farm to the 
same extent and in the same manner as those subsections applied to the 
previous quota holder.
    (i) Death of Quota Lessee or Quota Tenant.--If a quota lessee or 
quota tenant who is entitled to payments under this section dies and is 
survived by a spouse or 1 or more dependents, the right to receive the 
payments shall transfer to the surviving spouse or, if there is no 
surviving spouse, to the surviving dependents in equal shares.
    (j) Acceleration of Payments.--
            (1) In general.--On the occurrence of any of the events 
        described in paragraph (2), the Secretary shall make an 
        accelerated lump sum payment for lost tobacco quota to each 
        quota holder, quota lessee, and quota tenant for any affected 
        kind of tobacco in accordance with paragraph (3).
            (2) Triggering events.--The Secretary shall make 
        accelerated payments under paragraph (1) if after the date of 
        enactment of this Act--
                    (A) for 3 consecutive marketing years, the national 
                marketing quota for a kind of tobacco is less than 50 
                percent of the national marketing quota for the kind of 
                tobacco for the 1996 marketing year; or
                    (B) Congress repeals or makes ineffective, directly 
                or indirectly, any provision of--
                            (i) section 316(g) of the Agricultural 
                        Adjustment Act of 1938 (7 U.S.C. 1314b(g));
                            (ii) section 319(g) of the Agricultural 
                        Adjustment Act of 1938 (7 U.S.C. 1314e(g));
                            (iii) section 106 of the Agricultural Act 
                        of 1949 (7 U.S.C. 1445);
                            (iv) section 106A of the Agricultural Act 
                        of 1949 (7 U.S.C. 1445-1); or
                            (v) section 106B of the Agricultural Act of 
                        1949 (7 U.S.C. 1445-2).
            (3) Amount.--The amount of the accelerated payments made to 
        each quota holder, quota lessee, and quota tenant under this 
        subsection shall be equal to--
                    (A) the amount of the lifetime limitation 
                established for the quota holder, quota lessee, or 
                quota tenant under subsection (e); less
                    (B) any payments for lost tobacco quota received by 
                the quota holder, quota lessee, or quota tenant before 
                the occurrence of any of the events described in 
                paragraph (2).

SEC. 202. INDUSTRY PAYMENTS FOR ALL DEPARTMENT COSTS ASSOCIATED WITH 
              TOBACCO PRODUCTION.

    (a) In General.--The Secretary shall use such amounts as are 
necessary from the Trust Fund at the end of each fiscal year to 
reimburse the Secretary for--
            (1) costs associated with the administration of programs 
        established under this Act and amendments made by this Act;
            (2) costs associated with the administration of the tobacco 
        quota and price support programs administered by the Secretary;
            (3) costs to the Federal Government of carrying out crop 
        insurance programs for tobacco;
            (4) costs associated with all agricultural research, 
        extension, or education activities associated with tobacco;
            (5) costs associated with the administration of loan 
        association and cooperative programs for tobacco producers, as 
        approved by the Secretary; and
            (6) any other costs incurred by the Department of 
        Agriculture associated with the production of tobacco.
    (b) Limitations.--Amounts made available under subsection (a) may 
not be used--
            (1) to provide direct benefits to quota holders, quota 
        lessees, or quota tenants; or
            (2) in a manner that results in a decrease, or an increase 
        relative to other crops, in the amount of the crop insurance 
        premiums assessed to active tobacco producers under the Federal 
        Crop Insurance Act (7 U.S.C. 1501 et seq.).
    (c) Determinations.--Not later than September 30, 1998, and each 
fiscal year thereafter, the Secretary shall determine--
            (1) the amount of costs described in subsection (a); and
            (2) the amount that will be provided under this section as 
        reimbursement for the costs.

SEC. 203. TOBACCO COMMUNITY ECONOMIC DEVELOPMENT GRANTS.

    (a) Authority.--The Secretary shall make grants to tobacco-growing 
States in accordance with this section to enable the States to carry 
out economic development initiatives in tobacco-growing communities.
    (b) Application.--To be eligible to receive payments under this 
section, a State shall prepare and submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including--
            (1) a description of the activities that the State will 
        carry out using amounts received under the grant;
            (2) a designation of an appropriate State agency to 
        administer amounts received under the grant; and
            (3) a description of the steps to be taken to ensure that 
        the funds are distributed in accordance with subsection (e).
    (c) Amount of Grant.--
            (1) In general.--From the amounts available to carry out 
        this section for a fiscal year, the Secretary shall allot to 
        each State an amount that bears the same ratio to the amounts 
        available as the total income of the State derived from the 
        production of tobacco during the 1994 through 1996 marketing 
        years (as determined under paragraph (2)) bears to the total 
        income of all States derived from the production of tobacco 
        during the 1994 through 1996 marketing years.
            (2) Tobacco income.--For the 1994 through 1996 marketing 
        years, the Secretary shall determine the amount of income 
        derived from the production of tobacco in each State and in all 
        States.
    (d) Payments.--
            (1) In general.--A State that has an application approved 
        by the Secretary under subsection (b) shall be entitled to a 
        payment under this section in an amount that is equal to its 
        allotment under subsection (c).
            (2) Form of payments.--The Secretary may make payments 
        under this section to a State in installments, and in advance 
        or by way of reimbursement, with necessary adjustments on 
        account of overpayments or underpayments, as the Secretary may 
        determine.
            (3) Reallotments.--Any portion of the allotment of a State 
        under subsection (c) that the Secretary determines will not be 
        used to carry out this section in accordance with an approved 
        State application required under subsection (b), shall be 
        reallotted by the Secretary to other States in proportion to 
        the original allotments to the other States.
    (e) Use and Distribution of Funds.--
            (1) In general.--Amounts received by a State under this 
        section shall be used to carry out economic development 
        activities, including--
                    (A) rural business enterprise activities described 
                in subsections (c) and (e) of section 310B of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1932);
                    (B) down payment loan assistance programs that are 
                similar to the program described in section 310E of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1935);
                    (C) activities designed to help create productive 
                farm or off-farm employment in rural areas to provide a 
                more viable economic base and enhance opportunities for 
                improved incomes, living standards, and contributions 
                by rural individuals to the economic and social 
                development of tobacco communities;
                    (D) activities that expand existing infrastructure, 
                facilities, and services to capitalize on opportunities 
                to diversify economies in tobacco communities and that 
                support the development of new industries or commercial 
                ventures;
                    (E) activities by agricultural organizations that 
                provide assistance directly to active tobacco producers 
                to assist in developing other agricultural activities 
                that supplement tobacco-producing activities;
                    (F) initiatives designed to create or expand 
                locally owned value-added processing and marketing 
                operations in tobacco communities; and
                    (G) technical assistance activities by persons to 
                support farmer-owned enterprises, or agriculture-based 
                rural development enterprises, of the type described in 
                section 252 or 253 of the Trade Act of 1974 (19 U.S.C. 
                2342, 2343).
            (2) Tobacco-growing counties.--Assistance may be provided 
        by a State under this section only to assist a county in the 
        State that has been determined by the Secretary to have in 
        excess of $100,000 in income derived from the production of 
        tobacco during 1 or more of the 1994 through 1996 marketing 
        years.
            (3) Distribution.--
                    (A) Economic development activities.--Not less than 
                20 percent of the amounts received by a State under 
                this section shall be used to carry out--
                            (i) economic development activities 
                        described in subparagraph (E) or (F) of 
                        paragraph (1); or
                            (ii) agriculture-based rural development 
                        activities described in paragraph (1)(G).
                    (B) Technical assistance activities.--Not less than 
                4 percent of the amounts received by a State under this 
                section shall be used to carry out technical assistance 
                activities described in paragraph (1)(G).
                    (C) Tobacco-growing counties.--To be eligible to 
                receive payments under this section, a State shall 
                demonstrate to the Secretary that funding will be 
                provided, during each 5-year period for which funding 
                is provided under this section, for activities in each 
                county in the State that has been determined under 
                paragraph (2) to have in excess of $100,000 in income 
                derived from the production of tobacco, in amounts that 
                are at least equal to the product obtained by 
                multiplying--
                            (i) the ratio that the tobacco production 
                        income in the county determined under paragraph 
                        (2) bears to the total tobacco production 
                        income for the State determined under 
                        subsection (c); by
                            (ii) 50 percent of the total amounts 
                        received by a State under this section during 
                        the 5-year period.
    (f) Preferences in Hiring.--A State may require recipients of funds 
under this section to provide a preference in employment to--
            (1) an individual who--
                    (A) during the 1996 calendar year, was employed in 
                the manufacture, processing, or warehousing of tobacco 
                or tobacco products, or resided, in a county described 
                in subsection (e)(2); and
                    (B) is eligible for assistance under the tobacco 
                worker transition program established under section 
                301; or
            (2) an individual who--
                    (A) during the 1996 marketing year, carried out 
                tobacco quota or relevant tobacco production activities 
                in a county described in subsection (e)(2);
                    (B) is eligible for a farmer opportunity grant 
                under subpart 9 of part A of title IV of the Higher 
                Education Act of 1965; and
                    (C) has successfully completed a course of study at 
                an institution of higher education.

SEC. 204. MODIFICATIONS IN FEDERAL TOBACCO PROGRAMS.

    (a) Program Referenda.--Section 312(c) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1312(c)) is amended--
            (1) by striking ``(c) Within thirty'' and inserting the 
        following:
    ``(c) Referenda on Quotas.--
            ``(1) In general.--Not later than 30''; and
            (2) by adding at the end the following:
            ``(2) Referenda on program changes.--
                    ``(A) In general.--In the case of any kind of 
                tobacco for which marketing quotas are in effect, on 
                the receipt of a petition from more than 5 percent of 
                the producers of that kind of tobacco in a State, the 
                Secretary shall conduct a statewide referendum on any 
                proposal related to the lease and transfer of tobacco 
                quota within a State requested by the petition that is 
                authorized under this part.
                    ``(B) Approval of proposals.--If a majority of 
                producers of the kind of tobacco in the State approve a 
                proposal in a referendum conducted under subparagraph 
                (A), the Secretary shall implement the proposal in a 
                manner that applies to all producers and quota holders 
of that kind of tobacco in the State.''.
    (b) Purchase Requirements.--Section 320B of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1314h) is amended--
            (1) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) 105 percent of the average market price for the kind 
        of tobacco involved during the preceding marketing year; by''; 
        and
            (2) by striking subsection (d) and inserting the following:
    ``(d) Use of Penalty Payments.--An amount equivalent to each 
penalty collected by the Secretary under this section shall be 
transmitted by the Secretary to the Secretary of the Treasury for 
deposit in the Tobacco Community Revitalization Trust Fund established 
under section 101 of the LEAF Act.''.
    (c) Elimination of Tobacco Marketing Assessment.--
            (1) In general.--Section 106 of the Agricultural Act of 
        1949 (7 U.S.C. 1445(g)) is amended by striking subsection (g).
            (2) Conforming amendment.--Section 422(c) of the Uruguay 
        Round Agreements Act (Public Law 103-465; 7 U.S.C. 1445 note) 
        is amended by striking ``section 106(g), 106A, or 106B of the 
        Agricultural Act of 1949 (7 U.S.C. 1445(g), 1445-1, or 1445-
        2)'' and inserting ``section 106A or 106B of the Agricultural 
        Act of 1949 (7 U.S.C. 1445-1, 1445-2)''.

           TITLE III--FARMER AND WORKER TRANSITION ASSISTANCE

SEC. 301. TOBACCO WORKER TRANSITION PROGRAM.

    (a) Group Eligibility Requirements.--
            (1) Criteria.--A group of workers (including workers in any 
        firm or subdivision of a firm involved in the manufacture, 
        processing, or warehousing of tobacco or tobacco products) 
        shall be certified as eligible to apply for adjustment 
        assistance under this section pursuant to a petition filed 
        under subsection (b) if the Secretary of Labor determines that 
        a significant number or proportion of the workers in such 
        workers' firm or an appropriate subdivision of the firm have 
        become totally or partially separated, or are threatened to 
        become totally or partially separated, and--
                    (A) the sales or production, or both, of such firm 
                or subdivision have decreased absolutely; and
                    (B) the implementation of the national tobacco 
                settlement contributed importantly to such workers' 
                separation or threat of separation and to the decline 
                in the sales or production of such firm or subdivision.
            (2) Definition of contributed importantly.--In paragraph 
        (1)(B), the term ``contributed importantly'' means a cause that 
        is important but not necessarily more important than any other 
        cause.
            (3) Regulations.--The Secretary shall issue regulations 
        relating to the application of the criteria described in 
        paragraph (1) in making preliminary findings under subsection 
        (b) and determinations under subsection (c).
    (b) Preliminary Findings and Basic Assistance.--
            (1) Filing of petitions.--A petition for certification of 
        eligibility to apply for adjustment assistance under this 
        section may be filed by a group of workers (including workers 
        in any firm or subdivision of a firm involved in the 
        manufacture, processing, or warehousing of tobacco or tobacco 
        products) or by their certified or recognized union or other 
        duly authorized representative with the Governor of the State 
        in which such workers' firm or subdivision thereof is located.
            (2) Findings and assistance.--Upon receipt of a petition 
        under paragraph (1), the Governor shall--
                    (A) notify the Secretary that the Governor has 
                received the petition;
                    (B) within 10 days after receiving the petition--
                            (i) make a preliminary finding as to 
                        whether the petition meets the criteria 
                        described in subsection (a)(1); and
                            (ii) transmit the petition, together with a 
                        statement of the finding under clause (i) and 
                        reasons for the finding, to the Secretary for 
                        action under subsection (c); and
                    (C) if the preliminary finding under subparagraph 
                (B)(i) is affirmative, ensure that rapid response and 
                basic readjustment services authorized under other 
                Federal laws are made available to the workers.
    (c) Review of Petitions by Secretary; Certifications.--
            (1) In general.--The Secretary, within 30 days after 
        receiving a petition under subsection (b)(2)(B)(ii), shall 
        determine whether the petition meets the criteria described in 
        subsection (a)(1). Upon a determination that the petition meets 
        such criteria, the Secretary shall issue to workers covered by 
        the petition a certification of eligibility to apply for the 
        assistance described in subsection (d).
            (2) Denial of certification.--Upon the denial of a 
        certification with respect to a petition under paragraph (1), 
        the Secretary shall review the petition in accordance with the 
        requirements of other applicable assistance programs to 
        determine if the workers may be certified under such other 
        provisions.
    (d) Comprehensive Assistance.--
            (1) In general.--Workers covered by a certification issued 
        by the Secretary under subsection (c)(1) shall be provided with 
        benefits and services described in paragraph (2) in the same 
        manner and to the same extent as workers covered under a 
        certification under subchapter A of title II of the Trade Act 
        of 1974 (19 U.S.C. 2271 et seq.), except that the total amount 
        of payments under this section for any fiscal year shall not 
        exceed $50,000,000.
            (2) Benefits and services.--The benefits and services 
        described in this paragraph are the following:
                    (A) Employment services of the type described in 
                section 235 of the Trade Act of 1974 (19 U.S.C. 2295).
                    (B) Training described in section 236 of the Trade 
                Act of 1974 (19 U.S.C. 2296), except that 
                notwithstanding the provisions of section 236(a)(2)(A) 
                of such Act, the total amount of payments for training 
                under this section for any fiscal year shall not exceed 
                $25,000,000.
                    (C) Tobacco worker readjustment allowances, which 
                shall be provided in the same manner as trade 
                readjustment allowances are provided under part I of 
                subchapter B of chapter 2 of title II of the Trade Act 
                of 1974 (19 U.S.C. 2291 et seq.), except that--
                            (i) the provisions of sections 231(a)(5)(C) 
                        and 231(c) of such Act (19 U.S.C. 
                        2291(a)(5)(C), 2291(c)), authorizing the 
                        payment of trade readjustment allowances upon a 
                        finding that it is not feasible or appropriate 
                        to approve a training program for a worker, 
                        shall not be applicable to payment of 
                        allowances under this section; and
                            (ii) notwithstanding the provisions of 
                        section 233(b) of such Act (19 U.S.C. 2293(b)), 
                        in order for a worker to qualify for tobacco 
                        readjustment allowances under this section, the 
                        worker shall be enrolled in a training program 
                        approved by the Secretary of the type described 
                        in section 236(a) of such Act (19 U.S.C. 
                        2296(a)) by the later of--
                                    (I) the last day of the 16th week 
                                of such worker's initial unemployment 
                                compensation benefit period; or
                                    (II) the last day of the 6th week 
                                after the week in which the Secretary 
                                issues a certification covering such 
                                worker.
                        In cases of extenuating circumstances relating 
                        to enrollment of a worker in a training program 
                        under this section, the Secretary may extend 
                        the time for enrollment for a period of not to 
                        exceed 30 days.
                    (D) Job search allowances of the type described in 
                section 237 of the Trade Act of 1974 (19 U.S.C. 2297).
                    (E) Relocation allowances of the type described in 
                section 238 of the Trade Act of 1974 (19 U.S.C. 2298).
    (e) Ineligibility of Individuals Receiving Payments for Lost 
Tobacco Quota.--No benefits or services may be provided under this 
section to any individual who has received payments for lost tobacco 
quota under section 201.
    (f) Funding.--Of the amounts in the Trust Fund, the Secretary may 
use not to exceed $50,000,000 for each of fiscal years 1999 through 
2008 to provide assistance under this section.
    (g) Effective Date.--This section shall take effect on the date 
that is the later of--
            (1) October l, 1998; or
            (2) the date on which legislation implementing the national 
        tobacco settlement is enacted.
    (h) Termination Date.--No assistance, vouchers, allowances, or 
other payments may be provided under this section after the date that 
is the earlier of--
            (1) the date that is 10 years after the effective date of 
        this section under subsection (g); or
            (2) the date on which legislation establishing a program 
        providing dislocated workers with comprehensive assistance 
        substantially similar to the assistance provided by this 
        section becomes effective.

SEC. 302. FARMER OPPORTUNITY GRANTS.

    Part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.) is amended by adding at the end the following:

                 ``Subpart 9--Farmer Opportunity Grants

``SEC. 420D. STATEMENT OF PURPOSE.

    ``It is the purpose of this subpart to assist in making available 
the benefits of postsecondary education to eligible students 
(determined in accordance with section 420F) in institutions of higher 
education by providing farmer opportunity grants to all eligible 
students.

``SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND DETERMINATIONS; 
              APPLICATIONS.

    ``(a) Program Authority and Method of Distribution.--
            ``(1) Program authority.--From amounts made available under 
        section 101(d)(5) of the LEAF Act, the Secretary, during the 
        period beginning July 1, 1999, and ending September 30, 2024, 
        shall pay to each eligible institution such sums as may be 
        necessary to pay to each eligible student (determined in 
        accordance with section 420F) for each academic year during 
        which that student is in attendance at an institution of higher 
        education, as an undergraduate, a farmer opportunity grant in 
        the amount for which that student is eligible, as determined 
        pursuant to subsection (b). Not less than 85 percent of such 
        sums shall be advanced to eligible institutions prior to the 
        start of each payment period and shall be based upon an amount 
        requested by the institution as needed to pay eligible 
        students, except that this sentence shall not be construed to 
        limit the authority of the Secretary to place an institution on 
        a reimbursement system of payment.
            ``(2) Construction.--Nothing in this section shall be 
        construed to prohibit the Secretary from paying directly to 
        students, in advance of the beginning of the academic term, an 
        amount for which the students are eligible, in cases where the 
        eligible institution elects not to participate in the 
        disbursement system required by paragraph (1).
            ``(3) Designation.--Grants made under this subpart shall be 
        known as `farmer opportunity grants'.
    ``(b) Amount of Grants.--
            ``(1) Amounts.--
                    ``(A) In general.--The amount of the grant for a 
                student eligible under this subpart shall be--
                            ``(i) $1,700 for each of the academic years 
                        1999-2000 through 2003-2004;
                            ``(ii) $2,000 for each of the academic 
                        years 2004-2005 through 2008-2009;
                            ``(iii) $2,300 for each of the academic 
                        years 2009-2010 through 2013-2014;
                            ``(iv) $2,600 for each of the academic 
                        years 2014-2015 through 2018-2019; and
                            ``(v) $2,900 for each of the academic years 
                        2019-2020 through 2023-2024.
                    ``(B) Part-time rule.--In any case where a student 
                attends an institution of higher education on less than 
                a full-time basis (including a student who attends an 
                institution of higher education on less than a half-
                time basis) during any academic year, the amount of the 
                grant for which that student is eligible shall be 
                reduced in proportion to the degree to which that 
                student is not so attending on a full-time basis, in 
                accordance with a schedule of reductions established by 
                the Secretary for the purposes of this subparagraph, 
                computed in accordance with this subpart. Such schedule 
                of reductions shall be established by regulation and 
                published in the Federal Register.
            ``(2) Maximum.--No grant under this subpart shall exceed 
        the cost of attendance (as described in section 472) at the 
        institution at which that student is in attendance. If, with 
        respect to any student, it is determined that the amount of a 
        grant exceeds the cost of attendance for that year, the amount 
        of the grant shall be reduced to an amount equal to the cost of 
        attendance at such institution.
            ``(3) Prohibition.--No grant shall be awarded under this 
        subpart to any individual who is incarcerated in any Federal, 
        State, or local penal institution.
    ``(c) Period of Eligibility for Grants.--
            ``(1) In general.--The period during which a student may 
        receive grants shall be the period required for the completion 
        of the first undergraduate baccalaureate course of study being 
        pursued by that student at the institution at which the student 
        is in attendance, except that any period during which the 
        student is enrolled in a noncredit or remedial course of study 
        as described in paragraph (2) shall not be counted for the 
        purpose of this paragraph.
            ``(2) Construction.--Nothing in this section shall be 
        construed to--
                    ``(A) exclude from eligibility courses of study 
                that are noncredit or remedial in nature and that are 
                determined by the institution to be necessary to help 
                the student be prepared for the pursuit of a first 
                undergraduate baccalaureate degree or certificate or, 
                in the case of courses in English language instruction, 
                to be necessary to enable the student to utilize 
                already existing knowledge, training, or skills; and
                    ``(B) exclude from eligibility programs of study 
                abroad that are approved for credit by the home 
                institution at which the student is enrolled.
            ``(3) Prohibition.--No student is entitled to receive 
        farmer opportunity grant payments concurrently from more than 1 
        institution or from the Secretary and an institution.
    ``(d) Applications for Grants.--
            ``(1) In general.--The Secretary shall from time to time 
        set dates by which students shall file applications for grants 
        under this subpart. The filing of applications under this 
        subpart shall be coordinated with the filing of applications 
        under section 401(c).
            ``(2) Information and assurances.--Each student desiring a 
        grant for any year shall file with the Secretary an application 
        for the grant containing such information and assurances as the 
        Secretary may deem necessary to enable the Secretary to carry 
        out the Secretary's functions and responsibilities under this 
        subpart.
    ``(e) Distribution of Grants to Students.--Payments under this 
section shall be made in accordance with regulations promulgated by the 
Secretary for such purpose, in such manner as will best accomplish the 
purpose of this section. Any disbursement allowed to be made by 
crediting the student's account shall be limited to tuition and fees 
and, in the case of institutionally owned housing, room and board. The 
student may elect to have the institution provide other such goods and 
services by crediting the student's account.
    ``(f) Insufficient Funding.--If, for any fiscal year, the funds 
made available to carry out this subpart from the Tobacco Community 
Revitalization Trust Fund are insufficient to satisfy fully all grants 
for students determined to be eligible under section 420F, the amount 
of the grant provided under subsection (b) shall be reduced on a pro 
rata basis among all eligible students.
    ``(g) Treatment of Institutions and Students Under Other Laws.--Any 
institution of higher education that enters into an agreement with the 
Secretary to disburse to students attending that institution the 
amounts those students are eligible to receive under this subpart shall 
not be deemed, by virtue of such agreement, to be a contractor 
maintaining a system of records to accomplish a function of the 
Secretary. Recipients of farmer opportunity grants shall not be 
considered to be individual grantees for purposes of the Drug-Free 
Workplace Act of 1988 (41 U.S.C. 701 et seq.).

``SEC. 420F. STUDENT ELIGIBILITY.

    ``(a) In General.--In order to receive any grant under this 
subpart, a student shall--
            ``(1) be a member of a tobacco farm family in accordance 
        with subsection (b);
            ``(2) be enrolled or accepted for enrollment in a degree, 
        certificate, or other program (including a program of study 
        abroad approved for credit by the eligible institution at which 
        such student is enrolled) leading to a recognized educational 
        credential at an institution of higher education that is an 
        eligible institution in accordance with section 487, and not be 
        enrolled in an elementary or secondary school;
            ``(3) if the student is presently enrolled at an 
        institution of higher education, be maintaining satisfactory 
        progress in the course of study the student is pursuing in 
        accordance with subsection (c);
            ``(4) not owe a refund on grants previously received at any 
        institution of higher education under this title, or be in 
        default on any loan from a student loan fund at any institution 
        provided for in part D, or a loan made, insured, or guaranteed 
        by the Secretary under this title for attendance at any 
        institution;
            ``(5) file with the institution of higher education that 
        the student intends to attend, or is attending, a document, 
        that need not be notarized, but that shall include--
                    ``(A) a statement of educational purpose stating 
                that the money attributable to such grant will be used 
                solely for expenses related to attendance or continued 
                attendance at such institution; and
                    ``(B) such student's social security number; and
            ``(6) be a citizen of the United States.
    ``(b) Tobacco Farm Families.--
            ``(1) In general.--For the purpose of subsection (a)(1), a 
        student is a member of a tobacco farm family if during calendar 
        year 1996 the student was--
                    ``(A) an individual who--
                            ``(i) is an active tobacco producer (as 
                        defined in section 2 of the LEAF Act); or
                            ``(ii) is otherwise actively engaged in the 
                        production of tobacco;
                    ``(B) a spouse, son, daughter, stepson, or 
                stepdaughter of an individual described in subparagraph 
                (A);
                    ``(C) an individual--
                            ``(i) who was a brother, sister, 
                        stepbrother, stepsister, son-in-law, or 
                        daughter-in-law of an individual described in 
                        subparagraph (A); and
                            ``(ii) whose principal place of residence 
                        was the home of the individual described in 
                        subparagraph (A); or
                    ``(D) an individual who was a dependent (within the 
                meaning of section 152 of the Internal Revenue Code of 
                1986) of an individual described in subparagraph (A).
            ``(2) Administration.--On request, the Secretary of 
        Agriculture shall provide to the Secretary such information as 
        is necessary to carry out this subsection.
    ``(c) Satisfactory Progress.--
            ``(1) In general.--For the purpose of subsection (a)(3), a 
        student is maintaining satisfactory progress if--
                    ``(A) the institution at which the student is in 
                attendance reviews the progress of the student at the 
                end of each academic year, or its equivalent, as 
                determined by the institution; and
                    ``(B) the student has at least a cumulative C 
                average or its equivalent, or academic standing 
                consistent with the requirements for graduation, as 
                determined by the institution, at the end of the second 
                such academic year.
            ``(2) Special rule.--Whenever a student fails to meet the 
        eligibility requirements of subsection (a)(3) as a result of 
        the application of this subsection and subsequent to that 
        failure the student has academic standing consistent with the 
        requirements for graduation, as determined by the institution, 
        for any grading period, the student may, subject to this 
        subsection, again be eligible under subsection (a)(3) for a 
        grant under this subpart.
            ``(3) Waiver.--Any institution of higher education at which 
        the student is in attendance may waive paragraph (1) or (2) for 
        undue hardship based on--
                    ``(A) the death of a relative of the student;
                    ``(B) the personal injury or illness of the 
                student; or
                    ``(C) special circumstances as determined by the 
                institution.
    ``(d) Students Who Are Not Secondary School Graduates.--In order 
for a student who does not have a certificate of graduation from a 
school providing secondary education, or the recognized equivalent of 
such certificate, to be eligible for any assistance under this subpart, 
the student shall meet either 1 of the following standards:
            ``(1) Examination.--The student shall take an independently 
        administered examination and shall achieve a score, specified 
        by the Secretary, demonstrating that such student can benefit 
        from the education or training being offered. Such examination 
        shall be approved by the Secretary on the basis of compliance 
        with such standards for development, administration, and 
        scoring as the Secretary may prescribe in regulations.
            ``(2) Determination.--The student shall be determined as 
        having the ability to benefit from the education or training in 
        accordance with such process as the State shall prescribe. Any 
        such process described or approved by a State for the purposes 
        of this section shall be effective 6 months after the date of 
        submission to the Secretary unless the Secretary disapproves 
        such process. In determining whether to approve or disapprove 
        such process, the Secretary shall take into account the 
        effectiveness of such process in enabling students without 
        secondary school diplomas or the recognized equivalent to 
        benefit from the instruction offered by institutions utilizing 
        such process, and shall also take into account the cultural 
        diversity, economic circumstances, and educational preparation 
        of the populations served by the institutions.
    ``(e) Special Rule for Correspondence Courses.--A student shall not 
be eligible to receive a grant under this subpart for a correspondence 
course unless such course is part of a program leading to an associate, 
bachelor, or graduate degree.
    ``(f) Courses Offered Through Telecommunications.--
            ``(1) Relation to correspondence courses.--A student 
        enrolled in a course of instruction at an eligible institution 
        of higher education (other than an institute or school that 
        meets the definition in section 521(4)(C) of the Carl D. 
        Perkins Vocational and Applied Technology Education Act (20 
        U.S.C. 2471(4)(C))) that is offered in whole or in part through 
        telecommunications and leads to a recognized associate, 
        bachelor, or graduate degree conferred by such institution 
        shall not be considered to be enrolled in correspondence 
        courses unless the total amount of telecommunications and 
        correspondence courses at such institution equals or exceeds 50 
        percent of such courses.
            ``(2) Restriction or reductions of financial aid.--A 
        student's eligibility to receive a grant under this subpart may 
        be reduced if a financial aid officer determines under the 
        discretionary authority provided in section 479A that 
        telecommunications instruction results in a substantially 
        reduced cost of attendance to such student.
            ``(3) Definition.--For the purposes of this subsection, the 
        term `telecommunications' means the use of television, audio, 
        or computer transmission, including open broadcast, closed 
        circuit, cable, microwave, or satellite, audio conferencing, 
        computer conferencing, or video cassettes or discs, except that 
        such term does not include a course that is delivered using 
        video cassette or disc recordings at such institution and that 
        is not delivered in person to other students of that 
        institution.
    ``(g) Study Abroad.--Nothing in this subpart shall be construed to 
limit or otherwise prohibit access to study abroad programs approved by 
the home institution at which a student is enrolled. An otherwise 
eligible student who is engaged in a program of study abroad approved 
for academic credit by the home institution at which the student is 
enrolled shall be eligible to receive a grant under this subpart, 
without regard to whether such study abroad program is required as part 
of the student's degree program.
    ``(h) Verification of Social Security Number.--The Secretary, in 
cooperation with the Commissioner of Social Security, shall verify any 
social security number provided by a student to an eligible institution 
under subsection (a)(5)(B) and shall enforce the following conditions:
            ``(1) Pending verification.--Except as provided in 
        paragraphs (2) and (3), an institution shall not deny, reduce, 
        delay, or terminate a student's eligibility for assistance 
        under this subpart because social security number verification 
        is pending.
            ``(2) Denial or termination.--If there is a determination 
        by the Secretary that the social security number provided to an 
        eligible institution by a student is incorrect, the institution 
        shall deny or terminate the student's eligibility for any grant 
        under this subpart until such time as the student provides 
        documented evidence of a social security number that is 
        determined by the institution to be correct.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed to permit the Secretary to take any compliance, 
        disallowance, penalty, or other regulatory action against--
                    ``(A) any institution of higher education with 
                respect to any error in a social security number, 
                unless such error was a result of fraud on the part of 
                the institution; or
                    ``(B) any student with respect to any error in a 
                social security number, unless such error was a result 
                of fraud on the part of the student.''.

                           TITLE IV--IMMUNITY

SEC. 401. GENERAL IMMUNITY FOR TOBACCO PRODUCERS AND WAREHOUSERS.

    Notwithstanding any other provision of this Act, an active tobacco 
producer, tobacco-related growers association, or tobacco warehouse 
owner or employee may not be subject to liability in any Federal or 
State court for any cause of action resulting from the failure of any 
tobacco product manufacturer, distributor, or retailer to comply with 
national tobacco settlement legislation.
                                 <all>