[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1658 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1658

 To eliminate the Federal quota and price support programs for Burley 
   tobacco, to compensate quota holders for the lost quota value, to 
  provide transition payments to producers of Burley tobacco, and to 
provide assistance to communities adversely affected by the elimination 
                of the quota and price support programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2001

   Mr. Hill introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
 To eliminate the Federal quota and price support programs for Burley 
   tobacco, to compensate quota holders for the lost quota value, to 
  provide transition payments to producers of Burley tobacco, and to 
provide assistance to communities adversely affected by the elimination 
                of the quota and price support programs.

    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 ``Burley Buy-out Act 
of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--ELIMINATION OF PRICE SUPPORT AND MARKET QUOTAS FOR BURLEY 
                                TOBACCO

Sec. 101. Burley tobacco price support program.
Sec. 102. Burley tobacco marketing quotas.
 TITLE II--COMPENSATION TO QUOTA HOLDERS AND TRANSITION ASSISTANCE TO 
                      PRODUCERS OF BURLEY TOBACCO

Sec. 201. Definitions.
Sec. 202. Compensation to Burley quota holders for loss of tobacco 
                            quota asset value.
Sec. 203. Transition payments for active Burley tobacco producers.
Sec. 204. Commodity Credit Corporation.
TITLE III--ECONOMIC ASSISTANCE FOR BURLEY TOBACCO-DEPENDENT COMMUNITIES

Sec. 301. Rural economic assistance grants.
Sec. 302. Commodity Credit Corporation.

  TITLE I--ELIMINATION OF PRICE SUPPORT AND MARKET QUOTAS FOR BURLEY 
                                TOBACCO

SEC. 101. BURLEY TOBACCO PRICE SUPPORT PROGRAM.

    Notwithstanding section 106 of the Agricultural Act of 1949 (7 
U.S.C. 1445), beginning with the 2002 crop of Burley tobacco, the 
Secretary of Agriculture shall not make price support available, 
whether in the form of loans, payments, purchases, or other operations, 
for any crop of Burley tobacco.

SEC. 102. BURLEY TOBACCO MARKETING QUOTAS.

    Notwithstanding part I of subtitle B of title III of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.), beginning 
with the 2002 crop of Burley tobacco, the Secretary shall not proclaim 
a national marketing quota for Burley tobacco or apportion a marketing 
quota for Burley tobacco among States and farms.

 TITLE II--COMPENSATION TO QUOTA HOLDERS AND TRANSITION ASSISTANCE TO 
                      PRODUCERS OF BURLEY TOBACCO

SEC. 201. DEFINITIONS.

    In this title:
            (1) Active burley tobacco producer.--The term ``active 
        Burley tobacco producer'' means a person that was the actual 
        producer, as determined by the Secretary of Agriculture, of 
        Burley tobacco on a farm where Burley tobacco was produced 
        pursuant to a marketing quota established under the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for 
        at least two of the 1999 through 2001 marketing years.
            (2) Burley quota holder.--The term ``Burley quota holder'' 
        means an owner of a farm on January 1, 2002, for which a Burley 
        tobacco farm marketing quota was established under the 
        Agricultural  Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) 
for the 2001 marketing year.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 202. COMPENSATION TO BURLEY QUOTA HOLDERS FOR LOSS OF TOBACCO 
              QUOTA ASSET VALUE.

    (a) Compensation Required.--The Secretary shall make a payment 
under this section to an eligible Burley quota holder to compensate the 
Burley quota holder for the lost value of the quota on account of the 
elimination of marketing quotas for Burley tobacco under section 102.
    (b) Eligibility.--To be eligible to receive a payment under this 
section, a person shall submit to the Secretary an application 
containing such information as the Secretary may require to demonstrate 
to the satisfaction of the Secretary that the person satisfies the 
definition of Burley quota holder. The application shall be submitted 
within such time, in such form, and in such manner as the Secretary may 
require.
    (c) Base Quota Level.--The Secretary shall determine, for each 
Burley quota holder whose application for payment is approved by the 
Secretary under subsection (b), the base quota level of the Burley 
quota holder for the 1991 through 2001 marketing years. The base quota 
level for the Burley quota holder shall be equal to the average Burley 
tobacco farm marketing quota established for the 1991 through 2001 
marketing years for the farm owned by the Burley quota holder.
    (d) Payment.--The Secretary shall make a one-time payment to an 
eligible Burley quota holder in an amount equal to the product obtained 
by multiplying--
            (1) $8 per pound; by
            (2) the base quota level established for the Burley quota 
        holder under subsection (c).
    (e) Time for Payment.--The payments required by this section shall 
be made during fiscal year 2002.

SEC. 203. TRANSITION PAYMENTS FOR ACTIVE BURLEY TOBACCO PRODUCERS.

    (a) Transition Payments Required.--The Secretary shall make 
transition payments under this section to eligible active Burley 
tobacco producers to lessen the financial consequences to producers of 
the elimination of price support for Burley tobacco under section 101.
    (b) Eligibility.--To be eligible to receive transition payments 
under this section, a person shall submit to the Secretary an 
application containing such information as the Secretary may require to 
demonstrate to the satisfaction of the Secretary that the person 
satisfies the definition of active Burley tobacco producer. The 
application shall be submitted within such time, in such form, and in 
such manner as the Secretary may require.
    (c) Production History.--The Secretary shall base the transition 
payments made to an active Burley tobacco producer on the average 
quantity of Burley tobacco subject to a marketing quota that was 
produced by the producer during the 1999 through 2001 marketing years.
    (d) Payments.--The Secretary shall make transition payments to an 
eligible active Burley tobacco producer in an aggregate amount equal to 
the product obtained by multiplying--
            (1) $7.50; by
            (2) the average quantity determined under subsection (c) 
        for the producer.
    (e) Time for Payments.--The total amount calculated for an active 
Burley tobacco producer under subsection (d) shall be paid to the 
producer in five equal installments. A payment shall be made during 
each of the fiscal years 2002 through 2007.

SEC. 204. COMMODITY CREDIT CORPORATION.

    The Secretary shall use the funds, facilities, and authorities of 
the Commodity Credit Corporation to carry out this title.

TITLE III--ECONOMIC ASSISTANCE FOR BURLEY TOBACCO-DEPENDENT COMMUNITIES

SEC. 301. RURAL ECONOMIC ASSISTANCE GRANTS.

    (a) Grant Authority.--During each of the fiscal years 2002 through 
2007, the Secretary of Agriculture shall use $50,000,000 of funds of 
the Commodity Credit Corporation to provide grants to States in which 
Burley tobacco is produced to assist those areas of such a State that 
are economically dependent on the production of Burley tobacco.
    (b) Grant Basis.--In making a grant under subsection (a) to a 
Burley tobacco-growing State, the Secretary shall base the amount of 
the grant on the following, as determined by the Secretary:
            (1) The number of counties in the State in which Burley 
        tobacco production is a significant part of the county's 
        economy.
            (2) The level of economic dependence of such counties on 
        Burley tobacco production.
    (c) Use of Grants by States.--A State that receives a grant under 
subsection (a) shall use the grant to make grants to counties or other 
public or private entities in the State to assist areas that are 
dependent on the production of Burley tobacco, as determined by the 
Governor. The amount of a grant paid to a county or other entity to 
assist an area shall be based on (as determined by the Secretary)--
            (1) the ratio of gross Burley tobacco sales receipts in the 
        area to the total farm income in the area; and
            (2) the ratio of all Burley tobacco related receipts in the 
        area to the total income in the area.
    (d) Use of Grants by Counties.--A county or other entity that 
receives a grant under subsection (c) shall use the grant in a manner 
determined appropriate by the county or entity (with the approval of 
the State) to assist Burley tobacco producers and other persons who are 
economically dependent on the production of Burley tobacco, including 
use for--
            (1) on-farm diversification and alternatives to the 
        production of tobacco and risk management; and
            (2) off-farm activities such as development of non-tobacco 
        related jobs.

SEC. 302. COMMODITY CREDIT CORPORATION.

    The Secretary shall use the funds, facilities, and authorities of 
the Commodity Credit Corporation to carry out this title.
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