1.Short title; table of contents
(a)This Act may be cited as the Fair and Equitable Tobacco Reform Act of 2004
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents
Sec. 2. Effective date
Title I—Termination of Federal tobacco quota and price support programs
Sec. 101. Termination of tobacco quota program and related provisions
Sec. 102. Termination of tobacco price support program and related provisions
Sec. 103. Liability
Title II—Transitional payments to tobacco quota holders and active producers of tobacco
Sec. 201. Definitions of active tobacco producer and quota holder
Sec. 202. Payments to tobacco quota holders
Sec. 203. Transition payments for active producers of quota tobacco
Sec. 204. Geographical restrictions on expansion of tobacco production
Sec. 205. Resolution of disputes
Sec. 206. Source of funds for payments
2.This Act and the amendments made by this Act shall apply to the 2005 and subsequent crops of each kind of tobacco.
<enum>I</enum><header>Termination of Federal tobacco quota and price support programs</header>
<section id="H13908A2B425F41DBAAD3EF62CC60DB34"><enum>101.</enum><header>Termination of tobacco quota program and related provisions</header>
<subsection id="H1767782B43AC4D728B414B935CD04E7D"><enum>(a)</enum><header>Marketing quotas</header><text>Part I of subtitle B of title III of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1311">7 U.S.C. 1311 et seq.</external-xref>) is repealed.</text></subsection>
<subsection id="H142C6DE3493746539D07F61F4858595E"><enum>(b)</enum><header>Processing tax</header><text>Section 9(b) of the Agricultural Adjustment Act (<external-xref legal-doc="usc" parsable-cite="usc/7/609">7 U.S.C. 609(b)</external-xref>), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended—</text>
<paragraph id="H4FDC5B3106CF4216B8A33EBAB257188C"><enum>(1)</enum><text>in paragraph (2), by striking <quote>tobacco,</quote>; and</text></paragraph>
<paragraph id="H8385783728394B0CA98E95E29C11DE57"><enum>(2)</enum><text>in paragraph (6)(B)(i), by striking <quote>, or, in the case of tobacco, is less than the fair exchange value by not more than 10 per centum,</quote>.</text></paragraph></subsection>
<subsection id="H2E76AEF52AA1412A8C94AB4C00E674DC"><enum>(c)</enum><header>Declaration of policy</header><text>Section 2 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1282">7 U.S.C. 1282</external-xref>) is amended by striking <quote>tobacco,</quote>.</text></subsection>
<subsection id="HF1E46FCA69DD472E956E19F907045900"><enum>(d)</enum><header>Definitions</header><text>Section 301(b) of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1301">7 U.S.C. 1301(b)</external-xref>) is amended—</text>
<paragraph id="H36FAA4C110EC4899BEACD9425872AAB7"><enum>(1)</enum><text>in paragraph (3)—</text>
<subparagraph id="HBFC9954387384C9489FDF5BA426214F7"><enum>(A)</enum><text>by striking subparagraph (C); and</text></subparagraph>
<subparagraph id="H80F45137E5F345D9BD3F966EDFACD085"><enum>(B)</enum><text>by redesignating subparagraph (D) as subparagraph (C);</text></subparagraph></paragraph>
<paragraph id="HFDA80ED426EF4CB6B492008D078FB26B"><enum>(2)</enum><text>in paragraph (6)(A), by striking <quote>tobacco,</quote>;</text></paragraph>
<paragraph id="H9D2941FC53654939B80029BA10EC2E00"><enum>(3)</enum><text>in paragraph (10)—</text>
<subparagraph id="HDFEDE8CAAFB44847B22C9F5451BBF280"><enum>(A)</enum><text>by striking subparagraph (B); and</text></subparagraph>
<subparagraph id="H64520F06C2A046E5B191815B2853AB9D"><enum>(B)</enum><text>by redesignating subparagraph (C) as subparagraph (B);</text></subparagraph></paragraph>
<paragraph id="H4CFECF20A91346CAA65DD9F562F34B19"><enum>(4)</enum><text>in paragraph (11)(B), by striking <quote>and tobacco</quote>;</text></paragraph>
<paragraph id="H04A03865C0BD4DF0A406002B7FF049B7"><enum>(5)</enum><text>in paragraph (12), by striking <quote>tobacco,</quote>;</text></paragraph>
<paragraph id="H1F097605587E4C5AAC100750CE97FA41"><enum>(6)</enum><text>in paragraph (14)—</text>
<subparagraph id="H52225A0EF7CB4CA2BC56F8DC018BB0A2"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>(A)</quote>; and</text></subparagraph>
<subparagraph id="HD6CD9BFFC24841CB9B8D3000001D96C9"><enum>(B)</enum><text>by striking subparagraphs (B), (C), and (D);</text></subparagraph></paragraph>
<paragraph id="HE017E9BB4DD9437D9EA5C3FB221395A1"><enum>(7)</enum><text>by striking paragraph (15);</text></paragraph>
<paragraph id="H39E92430A2A24B49877CCF9CEBB8F8BE"><enum>(8)</enum><text>in paragraph (16)—</text>
<subparagraph id="HD365A8AEE496406B98B172E7FF2183B"><enum>(A)</enum><text>by striking subparagraph (B); and</text></subparagraph>
<subparagraph id="HED38FAFD787A4EB3ABA465C60017D6C7"><enum>(B)</enum><text>by redesignating subparagraph (C) as subparagraph (B);</text></subparagraph></paragraph>
<paragraph id="HF96DBAEE277B4A6FA724D6000084F356"><enum>(9)</enum><text>by striking paragraph (17); and</text></paragraph>
<paragraph id="H229D4C12925349DDBDE7331414A10665"><enum>(10)</enum><text>by redesignating paragraph (16) as paragraph (15).</text></paragraph></subsection>
<subsection id="H58F81F8400994B2481DB66914919E43"><enum>(e)</enum><header>Parity payments</header><text>Section 303 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1303">7 U.S.C. 1303</external-xref>) is amended in the first sentence by striking <quote>rice, or tobacco,</quote> and inserting <quote>or rice,</quote>.</text></subsection>
<subsection id="H3CB162FA92D94665AE4489FACBB9E142"><enum>(f)</enum><header>Administrative provisions</header><text>Section 361 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1361">7 U.S.C. 1361</external-xref>) is amended by striking <quote>tobacco,</quote>.</text></subsection>
<subsection id="H63E8FF00D44A414491BB719F5C130726"><enum>(g)</enum><header>Adjustment of quotas</header><text>Section 371 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1371">7 U.S.C. 1371</external-xref>) is amended—</text>
<paragraph id="H963981AE23A24ABA92112F14D1691B5E"><enum>(1)</enum><text>in the first sentence of subsection (a), by striking <quote>rice, or tobacco</quote> and inserting <quote>or rice</quote>; and</text></paragraph>
<paragraph id="H6F53B2233AD84E43A0AA213E80EDAC17"><enum>(2)</enum><text>in the first sentence of subsection (b), by striking <quote>rice, or tobacco</quote> and inserting <quote>or rice</quote>.</text></paragraph></subsection>
<subsection id="H9464F4CCA7D0476DA968EEA3AE637D80"><enum>(h)</enum><header>Regulations</header><text>Section 375 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1375">7 U.S.C. 1375</external-xref>) is amended—</text>
<paragraph id="H4A0EB5CD52054EE6A1D9AD7D19632D23"><enum>(1)</enum><text>in subsection (a), by striking <quote>peanuts, or tobacco</quote> and inserting <quote>or peanuts</quote>; and</text></paragraph>
<paragraph id="H21E80DA11E91470E84342D84C74E3D5B"><enum>(2)</enum><text>by striking subsection (c).</text></paragraph></subsection>
<subsection id="H3CA290B13FA24A97A25EF55500EB02D"><enum>(i)</enum><header>Eminent domain</header><text>Section 378 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1378">7 U.S.C. 1378</external-xref>) is amended—</text>
<paragraph id="H2046C97FD42A469D8122EBA4EBF1F6B2"><enum>(1)</enum><text>in the first sentence of subsection (c), by striking <quote>cotton, and tobacco</quote> and inserting <quote>and cotton</quote>; and</text></paragraph>
<paragraph id="HC207F99C428242C6A4502D4854001E86"><enum>(2)</enum><text>by striking subsections (d), (e), and (f).</text></paragraph></subsection>
<subsection id="H28F5D269CE8F43AF968FF9858BFF05B5"><enum>(j)</enum><header>Burley tobacco farm reconstitution</header><text>Section 379 of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1379">7 U.S.C. 1379</external-xref>) is amended—</text>
<paragraph id="H76CA752EECEF4C0FA0F2A1A9006DDA1B"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="H30EB496814ED47E3871FC1F600002954"><enum>(A)</enum><text>by striking <quote>(a)</quote>; and</text></subparagraph>
<subparagraph id="HE3D3DC0CD3D8409593C5DBC882F9008D"><enum>(B)</enum><text>in paragraph (6), by striking <quote>, but this clause (6) shall not be applicable in the case of burley tobacco</quote>; and</text></subparagraph></paragraph>
<paragraph id="H7706D36A97A248CF8BFEDE425F13A016"><enum>(2)</enum><text>by striking subsections (b) and (c).</text></paragraph></subsection>
<subsection id="H545186559F3E4058BD31B8BAA6198CC"><enum>(k)</enum><header>Acreage-poundage quotas</header><text>Section 4 of the Act of April 16, 1955 (<external-xref legal-doc="public-law" parsable-cite="pl/89/12">Public Law 89–12</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/7/1314c">7 U.S.C. 1314c</external-xref> note), is repealed.</text></subsection>
<subsection id="H99BD6F7CFF224B2F965D008ECA5CF63C"><enum>(l)</enum><header>Burley tobacco acreage allotments</header><text>The Act of July 12, 1952 (<external-xref legal-doc="usc" parsable-cite="usc/7/1315">7 U.S.C. 1315</external-xref>), is repealed.</text></subsection>
<subsection id="HB45BBB93E0A74A37B88C1FA7842DDB1"><enum>(m)</enum><header>Transfer of allotments</header><text>Section 703 of the Food and Agriculture Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/7/1316">7 U.S.C. 1316</external-xref>) is repealed.</text></subsection>
<subsection id="H8AE61D806E8D440783C3A45CF0C470A7"><enum>(n)</enum><header>Advance recourse loans</header><text>Section 13(a)(2)(B) of the Food Security Improvements Act of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/7/1433c-1">7 U.S.C. 1433c–1(a)(2)(B)</external-xref>) is amended by striking <quote>tobacco and</quote>.</text></subsection>
<subsection id="HD755945C53294E3082FE00DEF14E976"><enum>(o)</enum><header>Tobacco field measurement</header><text>Section 1112 of the Omnibus Budget Reconciliation Act of 1987 (<external-xref legal-doc="public-law" parsable-cite="pl/100/203">Public Law 100–203</external-xref>) is amended by striking subsection (c).</text></subsection></section>
<section id="HD6EA078D8F41467EBAE26F027C9E7DBF"><enum>102.</enum><header>Termination of tobacco price support program and related provisions</header>
<subsection id="H165137236E204FB788089BEF3E2DE962"><enum>(a)</enum><header>Termination of tobacco price support and no net cost provisions</header><text>Sections 106, 106A, and 106B of the Agricultural Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/7/1445">7 U.S.C. 1445</external-xref>, 1445–1, 1445–2) are repealed.</text></subsection>
<subsection id="H9A9B81E47D994DEAA2BACA17D5ECFE57"><enum>(b)</enum><header>Parity price support</header><text>Section 101 of the Agricultural Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/7/1441">7 U.S.C. 1441</external-xref>) is amended—</text>
<paragraph id="HA42F649490DE496F87B2A0514BBD9070"><enum>(1)</enum><text>in the first sentence of subsection (a), by striking <quote>tobacco (except as otherwise provided herein), corn,</quote> and inserting <quote>corn</quote>;</text></paragraph>
<paragraph id="H0940EF85961C4896B19474D564CAB8E5"><enum>(2)</enum><text>by striking subsections (c), (g), (h), and (i);</text></paragraph>
<paragraph id="HA36D274496174B97A6E51550A6EF24C"><enum>(3)</enum><text>in subsection (d)(3)—</text>
<subparagraph id="H2269A770747341989737F0FDFBC451B3"><enum>(A)</enum><text>by striking <quote>, except tobacco,</quote>; and</text></subparagraph>
<subparagraph id="HDFD1030AA60B4829AE19F6C2F690D3B9"><enum>(B)</enum><text>by striking <quote>and no price support shall be made available for any crop of tobacco for which marketing quotas have been disapproved by producers;</quote>; and</text></subparagraph></paragraph>
<paragraph id="H1188E7D630614C4BA5E64E4EE231FA70"><enum>(4)</enum><text>by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.</text></paragraph></subsection>
<subsection id="HE588818FCAE04E87974212B441321323"><enum>(c)</enum><header>Definition of basic agricultural commodity</header><text>Section 408(c) of the Agricultural Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/7/1428">7 U.S.C. 1428(c)</external-xref>) is amended by striking <quote>tobacco,</quote>.</text></subsection>
<subsection id="H68BA18BB876849309F06C8BB27A2879E"><enum>(d)</enum><header>Powers of commodity credit corporation</header><text>Section 5 of the <act-name parsable-cite="CCCCA">Commodity Credit Corporation Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/714c">15 U.S.C. 714c</external-xref>) is amended by inserting <quote>(other than tobacco)</quote> after <quote>agricultural commodities</quote> each place it appears.</text></subsection></section>
<section id="H0695C6ED98754FA18689C88D1CB08899"><enum>103.</enum><header>Liability</header><text display-inline="no-display-inline">The amendments made by this title shall not affect the liability of any person under any provision of law so amended with respect to any crop of tobacco planted before the effective date of this Act.</text></section>
<enum>II</enum><header>Transitional payments to tobacco quota holders and active producers of tobacco</header>
<section id="H1253CDF912FD4D8B86E237048F0255FE"><enum>201.</enum><header>Definitions of active tobacco producer and quota holder</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H6EC82FCDBD604FF89084856817CD6009"><enum>(1)</enum><header>Active tobacco producer</header><text>The term <term>active tobacco producer</term> means an owner, operator, landlord, tenant, or sharecropper who, as of the day before the date of the enactment of this Act—</text>
<subparagraph id="H8331E1F9E6514E3C84B386EC7C14BC96"><enum>(A)</enum><text>shared in the risk of producing tobacco on a farm where tobacco was produced pursuant to a tobacco farm marketing quota or farm acreage allotment established under part I of subtitle B of title III of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1311">7 U.S.C. 1311 et seq.</external-xref>), as in effect on the day before the date of the enactment of this Act; and</text></subparagraph>
<subparagraph id="HE0B171802D8B49B199922EB66A2EC2"><enum>(B)</enum><text>was actively engaged on that farm in the production of tobacco marketed or considered planted.</text></subparagraph></paragraph>
<paragraph id="HFC2381FA58544B63BA1B73C692BEED9"><enum>(2)</enum><header>Considered planted</header><text>The term <quote>considered planted</quote> means tobacco that was planted, but failed to be produced as a result of a natural disaster, as determined by the Secretary.</text></paragraph>
<paragraph id="HD8ED17FA65734A9C84C22A4DCAB5EF"><enum>(3)</enum><header>Tobacco quota holder</header><text>The term <term>tobacco quota holder</term> means an owner, as of the day before the date of the enactment of this Act, of a tobacco farm marketing quota or a farm acreage allotment established under part I of subtitle B of title III of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1311">7 U.S.C. 1311 et seq.</external-xref>), as in effect on the day before the date of the enactment of this Act.</text></paragraph>
<paragraph id="H59F813EBD7BA4C6888A7EB687E0965B2"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Agriculture.</text></paragraph></section>
<section id="HBE378FBC488E46BE9E1B8B07AB14EA00"><enum>202.</enum><header>Payments to tobacco quota holders</header>
<subsection id="H4AB8BE90CD2748049DA60067942B3FC4"><enum>(a)</enum><header>Payment required</header><text>The Secretary shall make payments to each eligible tobacco quota holder for the termination of tobacco marketing quotas and related price support under title I, which shall constitute full and fair compensation for any losses relating to such termination.</text></subsection>
<subsection id="H7F585F193E1A43B30066129D5557D4E2"><enum>(b)</enum><header>Eligibility</header><text>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 tobacco quota holder. The application shall be submitted within such time, in such form, and in such manner as the Secretary may require.</text></subsection>
<subsection id="H00BA0BE654A847289B0553BB2F31FDA7"><enum>(c)</enum><header>Individual base quota level</header>
<paragraph id="H7333FD36D82545E2ADDDABB1B78E30B1"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish a base quota level applicable to each eligible tobacco quota holder identified under subsection (b).</text></paragraph>
<paragraph id="HFAFABB03704A41F0878379DB3EF8FC2E"><enum>(2)</enum><header>Poundage quotas</header><text>Subject to adjustment under subsection (d), for each kind of tobacco for which the marketing quota is expressed in pounds, the base quota level for each tobacco quota holder shall be equal to the basic tobacco marketing quota under the Agriculture Adjustment Act of 1938 for the marketing year in effect on the date of the enactment of this Act for quota tobacco on the farm owned by the tobacco quota holder.</text></paragraph>
<paragraph id="H5E26118C42F944EEBE85E08F75C56437"><enum>(3)</enum><header>Marketing quotas other than poundage quotas</header><text>Subject to adjustment under subsection (d), for each kind of tobacco for which there is marketing quota or allotment on an acreage basis, the base quota level for each tobacco quota holder shall be the amount equal to the product obtained by multiplying—</text>
<subparagraph id="H0CC1E580622D4E6DAA29B61D3F5D373F"><enum>(A)</enum><text>the basic tobacco farm marketing quota or allotment for the marketing year in effect on the date of the enactment of this Act, as established by the Secretary for quota tobacco on the farm owned by the tobacco quota holder; by</text></subparagraph>
<subparagraph id="H54F8F2076B9743088738F15BD58533BB"><enum>(B)</enum><text>the average county production yield per acre for the county in which the farm is located for the kind of tobacco for that marketing year.</text></subparagraph></paragraph></subsection>
<subsection id="H126BF0E60939467091B5EF00F3E4B230"><enum>(d)</enum><header>Treatment of certain contracts and agreements</header>
<paragraph id="H89FA2DE41A3A417D80F29D5B003926E5"><enum>(1)</enum><header>Effect of purchase contract</header><text>If there was an agreement for the purchase of all or part of a farm described in subsection (c) as of the date of the enactment of this Act, and the parties to the sale are unable to agree to the disposition of eligibility for payments under this section, the Secretary, taking into account any transfer of quota that has been agreed to, shall provide for the equitable division of the payments among the parties by adjusting the determination of who is the tobacco quota holder with respect to particular pounds of the quota.</text></paragraph>
<paragraph id="H26080B21BFA041B1866CC743B6299E4"><enum>(2)</enum><header>Effect of agreement for permanent quota transfer</header><text>If the Secretary determines that there was in existence, as of the day before the date of the enactment of this Act, an agreement for the permanent transfer of quota, but that the transfer was not completed by that date, the Secretary shall consider the tobacco quota holder to be the party to the agreement that, as of that date, was the owner of the farm to which the quota was to be transferred.</text> </paragraph></subsection>
<subsection id="H5CD3E1B85E1B439294D8BEB5C9D150CD"><enum>(e)</enum><header>Total payment amounts based on 2002 marketing year</header>
<paragraph id="H1114495B232D46E88FA2D0887A52CB2"><enum>(1)</enum><header>Calculation of annual payment amount</header><text>During fiscal years 2005 through 2009, the Secretary shall make payments to all eligible tobacco quota holders identified under subsection (b) in an annual amount equal to the product obtained by multiplying, for each kind of tobacco for which the marketing quota is expressed in pounds—</text>
<subparagraph id="HD02416917A494B689707BEC1C263C1B"><enum>(A)</enum><text>$1.40 per pound; by</text></subparagraph>
<subparagraph id="H4A5D9487FB4944108401FDA4EC6E900"><enum>(B)</enum><text>the total tobacco farm marketing quotas established under the Agriculture Adjustment Act of 1938 for the 2002 marketing year for that kind of tobacco.</text></subparagraph></paragraph>
<paragraph id="HDA835836BA0045979424AD03AF160083"><enum>(2)</enum><header>Marketing quotas other than poundage quotas</header><text>For each kind of tobacco for which there is a marketing quota or allotment on an acreage basis, the Secretary shall convert the tobacco farm marketing quotas or allotments established under the Agriculture Adjustment Act of 1938 for the 2002 marketing year for that kind of tobacco to a poundage basis before executing the mathematical equation specified in paragraph (1).</text></paragraph></subsection>
<subsection id="HDFA1DFFE21C149B6A697D134A5D02DDB"><enum>(f)</enum><header>Individual payment amounts</header><text>The annual payment amount for each eligible tobacco quota holder with respect to a kind of tobacco under this section shall bear the same ratio to the amount determined by the Secretary under subsection (e) with respect to that kind of tobacco as the individual base quota level of that eligible tobacco quota holder under subsection (c) with respect to that kind of tobacco bears to the total base quota levels of all eligible tobacco quota holders with respect to that kind of tobacco.</text> </subsection>
<subsection id="HC6DAFBA316624442AB889D6609022236"><enum>(g)</enum><header>Death of tobacco quota holder</header><text>If a tobacco quota holder who is entitled to payments under this section dies and is survived by a spouse or one or more dependents, the right to receive the payments shall transfer to the surviving spouse or, if there is no surviving spouse, to the estate of the tobacco quota holder.</text></subsection></section>
<section id="H5738CCADF135403788BFE8849E16DDE5"><enum>203.</enum><header>Transition payments for active producers of quota tobacco</header>
<subsection id="H2CDEC512A0334ADF8F5000BA00052C03"><enum>(a)</enum><header>Transition payments required</header><text>The Secretary shall make transition payments under this section to eligible active producers of quota tobacco.</text></subsection>
<subsection id="HA74ED01F5E4049158FF05D12E3E24BA"><enum>(b)</enum><header>Eligibility</header><text>To be eligible to receive a transition 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 active producer of quota tobacco. The application shall be submitted within such time, in such form, and in such manner as the Secretary may require.</text></subsection>
<subsection id="HCDC84032187B4275B271FA7BEE646269"><enum>(c)</enum><header>Current production base</header><text>The Secretary shall establish a production base applicable to each eligible active producer of quota tobacco identified under subsection (b). A producer’s production base shall be equal to the quantity, in pounds, of quota tobacco subject to the basic marketing quota marketed or considered planted by the producer under the Agriculture Adjustment Act of 1938 for the marketing year in effect on the date of the enactment of this Act.</text></subsection>
<subsection id="H8F1B947ED3E3415B895047A300624C51"><enum>(d)</enum><header>Total payment amounts based on 2002 marketing year</header>
<paragraph id="H250B5FD680054ADDA9B9B69EE2E3D479"><enum>(1)</enum><header>Calculation of annual payment amount</header><text>During fiscal years 2005 through 2009, the Secretary shall make payments to all eligible active producers of quota tobacco identified under subsection (b) in an annual amount equal to the product obtained by multiplying, for each kind of tobacco for which the marketing quota is expressed in pounds—</text>
<subparagraph id="H6B817D2080DC4D00BCFF2037E3BA30B0"><enum>(A)</enum><text>$0.60 per pound; by</text></subparagraph>
<subparagraph id="H06CE7AC2563C494AA199C5AB21BC0465"><enum>(B)</enum><text>the total tobacco farm marketing quotas established under the Agriculture Adjustment Act of 1938 for the 2002 marketing year for that kind of tobacco.</text></subparagraph></paragraph>
<paragraph id="H44352C62290A4230BA47E74421441F71"><enum>(2)</enum><header>Marketing quotas other than poundage quotas</header><text>For each kind of tobacco for which there is a marketing quota or allotment on an acreage basis, the Secretary shall convert the tobacco farm marketing quotas or allotments established under the Agriculture Adjustment Act of 1938 for the 2002 marketing year for that kind of tobacco to a poundage basis before executing the mathematical equation specified in paragraph (1).</text></paragraph></subsection>
<subsection id="H1BC5A4FCAA2742E7AFF6715444E34179"><enum>(e)</enum><header>Individual payment amounts</header><text>The annual payment amount for each eligible active producer of quota tobacco identified under subsection (b) with respect to a kind of tobacco under this section shall bear the same ratio to the amount determined by the Secretary under subsection (d) with respect to that kind of tobacco as the individual production base of that eligible active producer under subsection (c) with respect to that kind of tobacco bears to the total production bases determined under that subsection for all eligible active producers of that kind of tobacco.</text> </subsection>
<subsection id="H9B3851FEB6FC4BD5844FEA4015059FE8"><enum>(f)</enum><header>Death of tobacco producer</header><text>If a tobacco producer who is entitled to payments under this section dies and is survived by a spouse or one or more dependents, the right to receive the payments shall transfer to the surviving spouse or, if there is no surviving spouse, to the estate of the tobacco producer.</text></subsection></section>
<section id="H7E2A10B6FE3E4DB6A33FC6C446D705CB"><enum>204.</enum><header>Geographical restrictions on expansion of tobacco production</header>
<subsection id="H9F296E789C374520B09ED53FCAD2ECE"><enum>(a)</enum><header>Purpose</header><text>The purpose of this section is to provide an orderly economic transition away from the marketing of tobacco based on quotas and price support while also addressing the economic dislocation, and the resulting impact on interstate commerce, that the termination of the tobacco quota and price support programs might cause.</text></subsection>
<subsection id="HCFB31E00C3AD4B98AF8619BF3002C61"><enum>(b)</enum><header>Penalty applicable to tobacco grown outside traditional tobacco counties</header><text>The marketing of tobacco in the 2005 or subsequent marketing years, of a kind of tobacco that was subject to a marketing quota in the 2002 marketing year, shall be subject to a penalty equal to 100 percent of the total amount received on the marketing of the tobacco unless the tobacco was grown in a traditional tobacco county.</text></subsection>
<subsection id="H2F399993EFEA4F8C8838D78DC1F2BACA"><enum>(c)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="HDE904FF972CA43D4893C8FA88D3676D9"><enum>(1)</enum><text>The term <term>marketing year</term> means July 1 to June 30 for flue-cured tobacco and October 1 to September 30 for all other kinds of tobacco.</text></paragraph>
<paragraph id="HE934EAF9E0AA49F2901D00A623F5FDA2"><enum>(2)</enum><text>The term <term>marketing quota in the 2002 marketing year</term> means a quota established for that year pursuant to part I of subtitle B of title III of the <act-name parsable-cite="AA38">Agricultural Adjustment Act of 1938</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1311">7 U.S.C. 1311 et seq.</external-xref>) and related provisions, as in effect for that marketing year.</text></paragraph>
<paragraph id="HDE1162E3E86E482C96086950B0AB00AE"><enum>(3)</enum><text>The term <term>traditional tobacco county</term>, with respect to a kind of tobacco, means—</text>
<subparagraph id="HC2076D85AE4541BEAB025D479166FE88"><enum>(A)</enum><text>a county in the United States that had 1 or more farms operated by active producers of quota tobacco of that kind of tobacco under a marketing quota in the 2002 marketing year; or</text></subparagraph>
<subparagraph id="H5D36E1B8235142C2BAF3F464B803CEEF"><enum>(B)</enum><text>a county contiguous to a county described in subparagraph (A) for that kind of tobacco.</text></subparagraph></paragraph></subsection></section>
<section id="H542949EB108C4A4A9054DD4774C4C503"><enum>205.</enum><header>Resolution of disputes</header><text display-inline="no-display-inline">Any dispute regarding the eligibility of a person to receive a payment under this title, or the amount of the payment, shall be resolved by the county committee established under section 8 of the Soil Conservation and Domestic Allotment Act (<external-xref legal-doc="usc" parsable-cite="usc/16/590h">16 U.S.C. 590h</external-xref>) for the county or other area in which the farming operation of the person is located.</text></section>
<section id="HA3758419BD40446BB3AA333CD9152F4C"><enum>206.</enum><header>Source of funds for payments</header><text display-inline="no-display-inline">There is hereby appropriated to the Secretary, from amounts in the general fund of the Treasury, such amounts as the Secretary needs in order to make the payments required by sections 202 and 203, provided such amounts do not exceed amounts received in the Treasury under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/52">chapter 52</external-xref> of the Internal Revenue Code of 1986 (relating to tobacco products and cigarette papers and tubes).</text></section>