I 

108TH CONGRESS 

1ST SESSION H. R. 1566

To replace the existing Federal price support and quota programs for fluecured and burley tobacco with a licensing program designed to assist 

the actual producers of flue-cured and burley tobacco, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2003

Mr. COBLE introduced the following bill; which was referred to the Committee 

on Agriculture 

A BILL

To replace the existing Federal price support and quota 

programs for flue-cured and burley tobacco with a licensing program designed to assist the actual producers of 

flue-cured and burley tobacco, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Phase III Implementation Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 
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Sec. 2. Findings and Purpose. 

TITLE I—TOBACCO PRODUCTION LICENSES 

Sec. 101. Definitions of historic tobacco producer and licensed tobacco producer. 

Sec. 102. National estimate of tobacco production levels. 

Sec. 103. National tobacco marketing factor. 

Sec. 104. Issuance of tobacco production licenses. 

Sec. 105. Annual authorized tobacco production under tobacco production licenses. 

Sec. 106. Termination of flue-cured and burley quota programs. 

Sec. 107. Program Referenda. 

Sec. 108. Effective date. 

TITLE II—TOBACCO COST OF PRODUCTION SUPPORT 

Sec. 201. Tobacco Cost of Production Calculation. 

Sec. 202. Effective date.

1 SEC. 2. FINDINGS AND PURPOSE. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) Tobacco production is conducted extensively 

4 in a number of States and generates significant in5 come in local communities in these States, which 

6 have historically relied on such production for eco7 nomic vitality. 

8 (2) Tobacco products manufactured from to9 bacco grown in these States are transported in inter10 state commerce. 

11 (3) Domestic trends affecting tobacco produc12 tion have had a disproportionately harsh impact on 

13 small family farms and on their communities. 

14 (4) The Federal tobacco program has become 

15 inefficient and has operated to keep a significant 

16 portion of tobacco production rights in the hands of 
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1 individuals who are not directly involved in tobacco 

2 production. 

3 (5) The continuation of a Federal tobacco sup4 ply management program is in the best interests of 

5 family farm operations that seek to continue to 

6 produce tobacco leaf. 

7 (6) Any efforts to assist flue-cured and burley 

8 tobacco growers in making a transition to a stable 

9 future economic environment must include mod10 ernization of the Federal tobacco program. 

11 (b) PURPOSE.—It is the purpose of this Act to mod12 ernize the Federal supply management program for flue13 cured and burley tobacco producers by shifting tobacco 

14 leaf production rights into the hands of active flue-cured 

15 and burley tobacco growers. 

16 TITLE I—TOBACCO PRODUCTION 

17 LICENSES 

18 SEC. 101. DEFINITIONS OF HISTORIC TOBACCO PRODUCER 

19 AND LICENSED TOBACCO PRODUCER. 

20 In this title: 

21 (1) The term ‘‘historic tobacco producer’’ 

22 means an owner, operator, landlord, tenant, or 

23 sharecropper who bore, individually or collectively, 

24 the risk of producing a crop of flue-cured or burley 

25 tobacco on a farm for the 2003 crop year. 
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1 (2) The term ‘‘licensed tobacco producer’’ 

2 means an owner, operator, landlord, tenant, or 

3 sharecropper who holds a license issued under this 

4 title—

5 (A) to plant a crop of flue-cured or burley 

6 tobacco on a farm in a specified county for the 

7 2004 or a subsequent crop year; and 

8 (B) to harvest and market an authorized 

9 quantity of flue-cured or burley tobacco. 

10 SEC. 102. NATIONAL ESTIMATE OF TOBACCO PRODUCTION 

11 LEVELS. 

12 (a) ANNUAL CALCULATION.—

13 (1) For the 2004 and each subsequent crop of 

14 flue-cured and burley tobacco, the Secretary of Agri15 culture shall determine and announce the national 

16 estimate for each type of flue-cured and burley to17 bacco, as calculated under this section, that the Sec18 retary estimates will be utilized during the mar19 keting year. 

20 (2) Not later than December 15 of each cal21 endar year with respect to flue-cured tobacco, and 

22 February 1 of each year with respect to burley to23 bacco, the Secretary shall announce the national es24 timate. 
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1 (3) The national estimate of flue-cured or bur2 ley tobacco for any marketing year shall be the 

3 quantity of flue-cured or burley tobacco, as deter4 mined by the Secretary, that is not more than 103 

5 percent nor less than 97 percent of the total of—

6 (A) the aggregate of quantities of flue7 cured or burley tobacco that domestic manufac8 turers of cigarettes estimate the manufacturers 

9 intend to purchase on the United States auction 

10 markets or from producers during the mar11 keting year, as compiled and determined under 

12 subsection (b); 

13 (B) the average annual quantity of flue14 cured or burley tobacco exported from the 

15 United States during the 3 marketing years im16 mediately preceding the marketing year for 

17 which the determination is being made; and 

18 (C) the quantity, if any, of flue-cured or 

19 burley tobacco that the Secretary, in the discre20 tion of the Secretary, determines is necessary to 

21 increase or decrease the inventories of the pro22 ducer-owned cooperative marketing associations 

23 that have entered into loan agreements with the 

24 Commodity Credit Corporation to make price 

25 support available to producers of flue-cured or 
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1 burley tobacco to establish or maintain such in2 ventories, in the aggregate, at the reserve sup3 ply level for flue-cured or burley tobacco.

4 (b) MANUFACTURER PURCHASE ESTIMATES.—Not 

5 later than December 1 of each calendar year with respect 

6 to flue-cured tobacco, and January 15 of each calendar 

7 year with respect to burley tobacco, each domestic manu8 facturer of cigarettes shall submit to the Secretary of Ag9 riculture a statement, by kind, of the quantity of flue10 cured tobacco and burley tobacco that the manufacturer 

11 intends to purchase, directly or indirectly, on the United 

12 States auction markets or from licensed tobacco producers 

13 during the next marketing year. 

14 (c) FAILURE TO SUBMIT, OR UNDER-PURCHASE OF, 

15 PURCHASE INTENTIONS.—

16 (1) A domestic manufacturer of cigarettes shall 

17 be subject to the penalty under paragraph (2) if 

18 such manufacturer fails to—

19 (A) submit to the Secretary of Agriculture 

20 purchase intentions as required under sub21 section (b) for a marketing year, but subse22 quently purchases tobacco on the United States 

23 auction markets or from licensed tobacco pro24 ducers during that marketing year, or 
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1 (B) purchase during a marketing year, on 

2 the United States auction markets, from li3 censed tobacco producers, or from inventories of 

4 tobacco of the producer-owned cooperative mar5 keting associations that have entered into loan 

6 agreements with the Commodity Credit Cor7 poration to make price support available to pro8 ducers of flue-cured and burley tobacco, a quan9 tity of flue-cured or burley tobacco equal to at 

10 least ninety percent of the quantity submitted 

11 under subsection (b). 

12 (2) The amount of any penalty to be imposed 

13 on a manufacturer under this section shall be deter14 mined by multiplying—

15 (A) twice the per pound assessment (as de16 termined under Section 106A or 106B of the 

17 Agricultural Act of 1949 (7 U.S.C. 1445–1 or 

18 1445–2)) for the kind of tobacco involved; by 

19 (B) the quantity—

20 (i) of purchases described in para21 graph (1)(A); or 

22 (ii) by which the purchases by such 

23 manufacturer described in paragraph 

24 (1)(B) are less than ninety percent of the 

25 quantity of intended purchases of such 
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1 kind of tobacco (as that quantity may be 

2 reduced under paragraph (3)). 

3 (3) If the quantity of flue-cured or burley to4 bacco marketed during a marketing year on United 

5 States auction markets (including tobacco consigned 

6 to a producer association for a price support ad7 vance) or directly from licensed tobacco producers is 

8 less than the national estimate for that kind of to9 bacco for that marketing year, the quantity of in10 tended purchases of each domestic manufacturer of 

11 cigarettes, for purposes of this subsection, shall be 

12 reduced by a percentage equal to the percentage by 

13 which the total quantity marketed is less than the 

14 national estimate for that kind of tobacco for the 

15 marketing year. 

16 (d) ENFORCEMENT.—The Secretary of Agriculture 

17 may enforce subsection (c) in the courts of the United 

18 States. 

19 (e) RESERVE SUPPLY LEVEL.—

20 (1) The reserve supply level for flue-cured to21 bacco under subparagraph (a)(3)(C) shall be the 

22 greater of—

23 (A) 60,000,000 pounds (farm sales 

24 weight); or 
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1 (B) 10 percent of the national estimate for 

2 flue-cured tobacco for the marketing year im3 mediately preceding the marketing year for 

4 which the level is being determined (or for the 

5 2004 crop of flue-cured tobacco, 10 percent of 

6 the national marketing quota for the 2003 mar7 keting year). 

8 (2) The reserve supply level for burley tobacco 

9 under subparagraph (a)(3)(C) shall be the greater 

10 of—

11 (A) 50,000,000 pounds (farm sales 

12 weight); or 

13 (B) 15 percent of the national estimate for 

14 burley tobacco for the marketing year imme15 diately preceding the marketing year for which 

16 the level is being determined (or for the 2004 

17 crop of burley tobacco, 15 percent of the na18 tional marketing quota for the 2003 marketing 

19 year). 

20 SEC. 103. NATIONAL TOBACCO MARKETING FACTOR. 

21 (a) 2004 CROP.—For the 2004 crop, the national 

22 marketing factor for flue-cured or burley tobacco shall be 

23 the ratio of the national estimate determined under section 

24 102(a) to the national marketing quota for the 2003 mar25 keting year. 
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1 (b) SUBSEQUENT CROPS.—For the 2005 and subse2 quent crops, the national marketing factor for flue-cured 

3 or burley tobacco for a crop year shall be the ratio of—

4 (1) the national estimate determined under sec5 tion 102(a); to 

6 (2) the sum of the quantity of flue-cured or 

7 burley tobacco that is authorized to be produced 

8 pursuant to a tobacco production license for the im9 mediately preceding year for all farms for which to10 bacco production licenses will be determined for such 

11 succeeding marketing year. 

12 SEC. 104. ISSUANCE OF TOBACCO PRODUCTION LICENSES. 

13 (a) INITIAL ISSUANCE TO HISTORIC TOBACCO PRO14 DUCERS.—

15 (1) ISSUANCE.—

16 (A) ISSUANCE REQUIRED.—As soon as 

17 practicable after the date of the enactment of 

18 this Act, the Secretary of Agriculture shall 

19 issue to each historic tobacco producer a to20 bacco production license for the purpose of en21 suring sufficient production of flue-cured and 

22 burley tobacco to satisfy the national estimate 

23 determined under section 102. 

24 (B) EXCEPTION.—The Secretary shall not 

25 issue a tobacco production license to an historic 
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1 tobacco producer with respect to flue-cured or 

2 burley tobacco if the historic tobacco producer 

3 does not certify to the Secretary that such pro4 ducer intends to produce such type of tobacco 

5 during the 2004 crop year.

6 (2) TOBACCO PRODUCTION HISTORY.—

7 (A) The tobacco production license issued 

8 to an historic tobacco producer under para9 graph (1) shall specify the tobacco production 

10 history of the producer for each type of tobacco 

11 for each county in which the producer bore, in12 dividually or collectively, the risk of producing 

13 a crop of tobacco on a farm in the county for 

14 the 2003 crop year. 

15 (B) In the case of an historic tobacco pro16 ducer who bore 100 percent of the risk of pro17 ducing a type of tobacco on a farm for the 

18 2003 crop year, the tobacco production history 

19 of the historic tobacco producer for that type of 

20 tobacco in a county shall be equal to the 2003 

21 marketing and effective quota of that type to22 bacco produced by the producer in the county 

23 for commercial use during the 2003 crop year. 

24 (C) In the case of an historic tobacco pro25 ducer who bore less than 100 percent of the 
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1 risk of production, the Secretary of Agriculture 

2 shall adjust the tobacco production history to 

3 reflect the percentage of risk that was borne by 

4 the producer. 

5 (D) The Secretary of Agriculture shall au6 thorize a production level under each tobacco 

7 production license for the 2004 crop determined 

8 by multiplying the tobacco production history 

9 by the national marketing factor for the 2004 

10 crop. 

11 (3) ADJUSTMENT AUTHORITY.—An historic to12 bacco producer may petition the Secretary of Agri13 culture to increase the tobacco production history 

14 determined under paragraph (2) for the producer for 

15 flue-cured or burley tobacco on the grounds that the 

16 producer’s 2003 production under-represents the 

17 producer’s historic production of that type of to18 bacco. 

19 (4) CONSOLIDATION OF COUNTIES.—If the ini20 tial issuance of a tobacco production license to an 

21 historic tobacco producer for flue-cured or burley to22 bacco would result in the producer receiving a li23 cense for that type of tobacco for more than one 

24 county, the producer may elect to consolidate the li25 censes in a single county in which the producer bore 
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1 or shared in the risk of producing a crop of that 

2 type of tobacco for the 2003 crop year. The option 

3 to make this election shall be provided only once. 

4 (b) SUBSEQUENT ISSUANCE.—

5 (1) IN GENERAL.—If a tobacco production li6 cense is surrendered or revoked, the Secretary of 

7 Agriculture shall transfer the license and the cor8 responding tobacco production history to beginning 

9 tobacco producers or licensed tobacco producers in 

10 the following order of preference: 

11 (A) Producers in the same county as the 

12 county in which the tobacco production history 

13 was derived. 

14 (B) Producers in the same State. 

15 (C) Producers in counties in other States 

16 in which licensed tobacco producers are oper17 ating. 

18 (2) RESERVATION FOR BEGINNING PRO19 DUCERS.—In all instances specified in subpara20 graphs (A), (B), and (C) of paragraph (1), the Sec21 retary shall reserve for beginning tobacco producers 

22 at least five percent of the tobacco production his23 tory surrendered or revoked under this section. 

24 (3) PRODUCERS WHO FORGO TOBACCO PRODUC25 TION LICENSE.—The tobacco production history of 
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1 an historic tobacco producer who does not certify to 

2 the Secretary that such producer intends to produce 

3 such type of tobacco during the 2004 crop year shall 

4 also be available to the Secretary for distribution as 

5 provided in paragraph (1). 

6 (c) LIMITATIONS ON USE OF LICENSE.—

7 (1) IN GENERAL.—A tobacco production license 

8 specifying a particular type of tobacco and the coun9 ty in which that type of tobacco may be grown may 

10 not be used as the basis to grow a different type of 

11 tobacco or to grow that type of tobacco in a different 

12 county. 

13 (2) REVOCATION.—Any use of a tobacco pro14 duction license contrary to this subsection shall re15 sult in the revocation of the license. 

16 (d) LIMITATIONS ON SALE, LEASE, OR TRANSFER OF

17 LICENSE.—

18 (1) SALE PROHIBITED.—A tobacco production 

19 license and the corresponding tobacco production 

20 history may not be sold or leased. 

21 (2) TRANSFER UNDER LIMITED CIR22 CUMSTANCES.—A licensed tobacco producer may not 

23 transfer a tobacco production license and the cor24 responding tobacco production history unless—
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1 (A) in the case of a licensed tobacco pro2 ducer who is in a partnership, the transfer is 

3 among the partners; or 

4 (B) in the case of a licensed tobacco pro5 ducer who is an individual, the transfer is made 

6 to the spouse, parent, brother, sister, or natural

7 or adopted child of the licensed tobacco pro8 ducer. 

9 (3) RIGHT OF SURVIVORSHIP.—In the case of 

10 the death of a person to whom a license has been 

11 issued under this section, the license shall transfer 

12 to the surviving spouse of the person or, if there is 

13 no surviving spouse, to the direct descendants of the 

14 person. 

15 (4) HARDSHIP.—In the case of the death of a 

16 person to whom a license has been issued under this 

17 section and whose descendants are temporarily un18 able to produce a crop of tobacco, the Secretary may 

19 hold the license in the name of the descendants for 

20 a period of not more than 18 months, at the discre21 tion of the Secretary. 

22 (5) LIFETIME TRANSFER.—A person that is eli23 gible to obtain a license under this section may at 

24 any time transfer all or part of the license to the 
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1 person’s spouse or direct descendants that are ac2 tively engaged in the production of tobacco. 

3 (6) REVOCATION.—Any sale, lease, or transfer 

4 of a tobacco production license or the corresponding 

5 tobacco production history contrary to this sub6 section shall result in the revocation of the license. 

7 (e) SURRENDER OR REVOCATION OF LICENSE FOR

8 NON-USE.—

9 (1) SURRENDER.—A licensed tobacco producer 

10 may surrender a tobacco production license and the 

11 corresponding tobacco production history to the Sec12 retary of Agriculture at any time. 

13 (2) REVOCATION.—The Secretary of Agri14 culture shall revoke the tobacco production license 

15 and the corresponding tobacco production history of 

16 a licensed tobacco producer if the licensed tobacco 

17 producer—

18 (A) fails to share, individually or collec19 tively, in 100 percent of the risk of producing 

20 a crop of tobacco of the type specified in the to21 bacco production license for any year; or 

22 (B) fails to produce at least 75 percent of 

23 the quantity of that type of tobacco specified in 

24 the tobacco production license for two out of 

25 three years, unless that Secretary determines 
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1 the failure was due to damaging weather or re2 lated condition. 

3 SEC. 105. ANNUAL AUTHORIZED TOBACCO PRODUCTION 

4 UNDER TOBACCO PRODUCTION LICENSES. 

5 (a) NOTIFICATION OF LICENSED TOBACCO PRO6 DUCERS.—As soon as practicable after preparing the na7 tional estimate required by section 102 for flue-cured or 

8 burley tobacco for a marketing year, the Secretary of Agri9 culture shall notify each licensed tobacco producer of that 

10 type of tobacco of the authorized quantity of tobacco that 

11 the producer may produce in a county in the cor12 responding crop year under the tobacco production license. 

13 (b) DETERMINATION OF AUTHORIZED PRODUCTION

14 LEVELS.—For the 2005 and subsequent marketing years, 

15 the authorized tobacco production level for a licensed to16 bacco producer for flue-cured or burley tobacco in a county 

17 for a crop year is equal to the product of—

18 (1) the production level authorized for such to19 bacco production license during the immediately pre20 ceding marketing year; and 

21 (2) the national tobacco marketing factor for 

22 that year determined by the Secretary of Agriculture 

23 under section 103. 

24 (c) EXCESS PRODUCTION.—Except as provided in 

25 subsection (e), if a licensed tobacco producer harvests and 
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1 markets tobacco in excess of the quantity specified in the 

2 producer’s tobacco production license or any other person 

3 produces tobacco without a tobacco production license, the 

4 licensed tobacco producer or other person shall be liable 

5 for a civil penalty up to an amount determined by multi6 plying—

7 (1) the quantity of tobacco involved in the viola8 tion; by 

9 (2) price support rate for the type of tobacco 

10 involved in effect under section 106 of the Agri11 culture Act of 1949 at the time of the violation. 

12 (d) ENFORCEMENT.—The Secretary of Agriculture 

13 may enforce subsection (c) in the courts of the United 

14 States. 

15 (e) LIMITED AUTHORITY TO EXCEED LICENSE.—If 

16 the Secretary determines that the actual production of 

17 flue-cured or burley tobacco for a crop year will be less 

18 than 80 percent of the production authorized under all li19 censes issued for that type of tobacco, the Secretary may 

20 authorize a licensed tobacco producer of that type of to21 bacco to harvest and market tobacco in excess of the quan22 tity specified in the producer’s tobacco production license. 

23 The Secretary shall establish a mechanism under which 

24 a licensed tobacco producer may apply for the authority 

25 to exceed the quantity specified in the producer’s license. 
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1 SEC. 106. TERMINATION OF FLUE-CURED AND BURLEY 

2 QUOTA PROGRAMS. 

3 Section 312 of the Agricultural Adjustment Act of 

4 1938 (7 U.S.C. 1312) is amended by adding after sub5 section (c):

6 ‘‘(d) INAPPLICABILITY TO 2004 AND SUBSEQUENT

7 CROP YEARS OF BURLEY AND FLUE-CURED TOBACCO.—

8 The provisions of this section and sections 317 and 319 

9 of this Act are not applicable to 2004 and subsequent crop 

10 years of burley and flue-cured tobacco.’’. 

11 SEC. 107. PROGRAM REFERENDA. 

12 (a) INITIAL REFERENDUM.—

13 (1) REFERENDUM REQUIRED.—Within sixty 

14 days after the enactment of this Act, the Secretary 

15 shall conduct a referendum, by type of tobacco, 

16 among the licensees engaged in the production of 

17 flue-cured or burley tobacco to determine whether 

18 the licensees engaged in the production of that kind 

19 of tobacco are in favor of continuing the operation 

20 of the program established under this Act with re21 spect to that kind of tobacco. 

22 (2) PROCESS AND RESULTS.—If more than one23 half of the licensees voting in a referendum con24 ducted under paragraph (1) with respect to flue25 cured or burley tobacco oppose the continuation of 

26 the program, the Secretary shall announce the result 
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1 and shall conduct a second referendum with respect 

2 to that kind of tobacco one year later. If more than 

3 one-half of the licensees voting in the second ref4 erendum also oppose the continuation of the pro5 gram, the Secretary shall announce the result and 

6 the program shall cease to be in effect for that kind 

7 of tobacco. 

8 (b) SUBSEQUENT REFERENDA.—

9 (1) REFERENDUM INITIATED BY SECRETARY.—

10 The Secretary may conduct subsequent referenda 

11 from time to time as the Secretary considers appro12 priate to determine whether producers are in favor 

13 of continuing the program established under this 

14 Act, the use of licenses, limitations on license trans15 fer, or any other aspect of the program. 

16 (2) REFERENDUM INITIATED BY LICENSEES.—

17 If at least one-third of the licensees engaged in the 

18 production of flue-cured or burley tobacco request a 

19 referendum under this subsection, the Secretary 

20 shall conduct a referendum among the licensees en21 gaged in the production of that kind of tobacco to 

22 determine whether the licensees are in favor of con23 tinuing the operation of the program established 

24 under this Act with respect to that kind of tobacco. 
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1 (3) PROCESS AND RESULTS.—If more than one2 half of the licensees voting in a referendum con3 ducted under paragraph (1) or (2) with respect to 

4 flue-cured or burley tobacco oppose the continuation 

5 of the program, the Secretary shall announce the re6 sult and shall conduct a second referendum with re7 spect to that kind of tobacco one year later. If more 

8 than one-half of the licensees voting in the second 

9 referendum also oppose the continuation of the pro10 gram, the Secretary shall announce the result and 

11 the program shall cease to be in effect for that kind 

12 of tobacco. 

13 SEC. 108. EFFECTIVE DATE. 

14 This title and the amendments made by this title 

15 shall apply with respect to the 2004 and subsequent flue16 cured and burley tobacco crops. 

17 TITLE II—TOBACCO COST OF 

18 PRODUCTION SUPPORT 

19 SEC. 201. TOBACCO COST OF PRODUCTION CALCULATION. 

20 (a) ADJUSTMENT TO FLUE-CURED AND BURLEY TO21 BACCO SUPPORT LEVELS.—Section 106 of the Agricul22 tural Act of 1949 (7 U.S.C. 1445) is amended by adding 

23 at the end thereof the following: 

24 ‘‘(h) SPECIAL SUPPORT LEVEL.—
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1 ‘‘(1) SUPPORT RATE; APPLICABILITY.—Not2 withstanding the foregoing provisions of this section, 

3 for the 2004 and each subsequent crop of flue-cured 

4 and burley tobacco for which tobacco production li5 censes are in effect or have not been disapproved by 

6 producers under title I of the Phase III Implementa7 tion Act, the support level shall be the level in cents 

8 per pound equal to the cost of production. 

9 ‘‘(2) COST OF PRODUCTION BASIS.—For pur10 poses of paragraph (1), the cost of production for to11 bacco producers shall include items representing 

12 general, variable costs of producing tobacco, as de13 termined by the Secretary, but shall not include the 

14 cost of land, risk, overhead, management, adminis15 tration of production licenses, marketing contribu16 tions or assessments, and other costs not directly re17 lated to the production of tobacco.’’. 

18 (b) AMENDMENT TO QUOTA TOBACCO DEFINI19 TION.—

20 (1) Section 106A(a)(7) of the Agricultural Act 

21 of 1949 (7 U.S.C. 1445–1(a)(7)) is amended by 

22 striking the period at the end of the paragraph and 

23 inserting ‘‘, and shall include any kind of tobacco for 

24 which tobacco production licenses are in effect or for 

25 which tobacco production licenses are not dis-
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1 approved by producers under title I of the Phase III 

2 Implementation Act.’’. 

3 (2) Section 106B(a)(5) of the Agricultural Act 

4 of 1949 (7 U.S.C. 1445–2(a)(5)) is amended by 

5 striking the period at the end of the paragraph and 

6 inserting ‘‘, and shall include any kind of tobacco for 

7 which tobacco production licenses are in effect or for 

8 which tobacco production licenses are not dis9 approved by producers under title I of the Phase III 

10 Implementation Act.’’

11 SEC. 202. EFFECTIVE DATE. 

12 This title and the amendments made by this title 

13 shall apply with respect to the 2004 and subsequent flue14 cured and burley tobacco crops.

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