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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2017 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 2017

To amend the Internal Revenue Code of 1986 to exclude from gross income 
   payments made to tobacco quota and allotment holders and tobacco 
 growers pursuant to Phase I or II of the Master Settlement Agreement 
           between a State and tobacco product manufacturers.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 31, 2000

  Mr. Bunning introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
   payments made to tobacco quota and allotment holders and tobacco 
 growers pursuant to Phase I or II of the Master Settlement Agreement 
           between a State and tobacco product manufacturers.

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

SECTION 1. EXCLUSION FROM GROSS INCOME FOR PAYMENTS MADE TO TOBACCO 
              QUOTA AND ALLOTMENT HOLDERS AND TOBACCO GROWERS PURSUANT 
              TO PHASE I OR II OF THE MASTER SETTLEMENT AGREEMENT.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
140 and by inserting after section 138 the following:

``SEC. 139. CERTAIN PAYMENTS TO TOBACCO QUOTA AND ALLOTMENT HOLDERS AND 
              TOBACCO GROWERS.

    ``(a) In General.--Gross income shall not include any tobacco 
settlement payment.
    ``(b) Tobacco Settlement Payment.--For purposes of subsection (a), 
the term `tobacco settlement payment' means any payment to any person 
if--
            ``(1) the payment is made to such person by reason of--
                    ``(A) such person holding a tobacco marketing 
                quota, or tobacco farm acreage allotment, under the 
                Agricultural Adjustment Act of 1938, or
                    ``(B) such person having the right to grow tobacco 
                pursuant to such a quota or allotment, and
            ``(2) such payment is received directly or indirectly 
        pursuant to Phase I or II of the Master Settlement Agreement 
        between a State and tobacco product manufacturers and signed on 
        November 23, 1998.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by striking the last item and inserting the following:

                              ``Sec. 139. Certain payments to tobacco 
                                        quota and allotment holders and 
                                        tobacco growers.
                              ``Sec. 140. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
                                 <all>
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