‘‘(i) any increase or decrease in the
number due to undermarketings or over-
marketings; and
‘‘(ii) any reduction under subsection
(i); and
‘‘(B) in a manner that ensures that—
‘‘(i) the total of all individual acreage
limitations is equal to the national acreage
allotment, less the reserve provided under
subsection (h); and
‘‘(ii) the individual acreage limitation
for a marketing year bears the same ratio
to the individual acreage limitation for the
previous marketing year as the ratio that
the national acreage allotment for the mar-
keting year bears to the national acreage
allotment for the previous marketing year,
subject to adjustments by the Secretary to
account for any reserve provided under
subsection (h).
‘‘(2) INDIVIDUAL
MARKETING
LIMITATION.—
The term ‘individual marketing limitation’ means
the number of pounds of flue-cured tobacco that
may be marketed by the holder of a permit during
a marketing year, calculated—
‘‘(A) prior to—
‘‘(i) any increase or decrease in the
number due to undermarketings or over-
marketings; and
‘‘(ii) any reduction under subsection
(i); and
‘‘(B) in a manner that ensures that—
‘‘(i) the total of all individual market-
ing limitations is equal to the national
marketing quota, less the reserve provided
under subsection (h); and
‘‘(ii) the individual marketing limita-
tion for a marketing year is obtained by
multiplying the individual acreage limita-
tion by the permit yield, prior to any ad-
justment for undermarketings or over-
marketings.
‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER-
MIT.—The term ‘individual tobacco production per-
mit’ means a permit issued by the Secretary to a
person authorizing the production of flue-cured to-
bacco for any marketing year during which this sec-
tion is effective.
‘‘(4) NATIONAL
ACREAGE
ALLOTMENT.—The
term ‘national acreage allotment’ means the quantity
determined by dividing—
‘‘(A) the national marketing quota; by
‘‘(B) the national average yield goal.
‘‘(5) NATIONAL
AVERAGE
YIELD
GOAL.—The
term ‘national average yield goal’ means the national
average yield for flue-cured tobacco during the 5
marketing years immediately preceding the market-
ing year for which the determination is being made.
‘‘(6) NATIONAL MARKETING QUOTA.—For the
1999 and each subsequent crop of flue-cured to-
bacco, the term ‘national marketing quota’ for a
marketing year means the quantity of flue-cured to-
bacco, as determined by the Secretary, that is not
more than 103 percent nor less than 97 percent of
the total of—
‘‘(A) the aggregate of the quantities of
flue-cured tobacco that domestic manufacturers
of cigarettes estimate that the manufacturers
intend to purchase on the United States auction
markets or from producers during the market-
ing year, as compiled and determined under
section 320A;
‘‘(B) the average annual quantity of flue-
cured tobacco exported from the United States
during the 3 marketing years immediately pre-
ceding the marketing year for which the deter-
mination is being made; and
‘‘(C) the quantity, if any, of flue-cured to-
bacco that the Secretary, in the discretion of
the Secretary, determines is necessary to in-
crease or decrease the inventory of the pro-
ducer-owned cooperative marketing association
that has entered into a loan agreement with the
Commodity Credit Corporation to make price
support available to producers of flue-cured to-
bacco to establish or maintain the inventory at
the reserve stock level for flue-cured tobacco.
‘‘(7) PERMIT YIELD.—The term ‘permit yield’
means the yield of tobacco per acre for an individual
tobacco production permit holder that is—
‘‘(A) based on a preliminary permit yield
that is equal to the average yield during the 5
marketing years immediately preceding the
marketing year for which the determination is
made in the county where the holder of the per-
mit is authorized to plant flue-cured tobacco, as
determined by the Secretary, on the basis of ac-
tual yields of farms in the county; and
‘‘(B) adjusted by a weighted national yield
factor calculated by—
‘‘(i) multiplying each preliminary per-
mit yield by the individual acreage limita-
tion, prior to adjustments for overmarket-
ings, undermarketings, or reductions re-
quired under subsection (i); and
‘‘(ii) dividing the sum of the products
under clause (i) for all flue-cured individ-
ual tobacco production permit holders by
the national acreage allotment.
‘‘(b) INITIAL ISSUANCE OF PERMITS.—
‘‘(1) TERMINATION OF FLUE-CURED MARKET-
ING
QUOTAS.—On approval through referendum
under subsection (c), farm marketing quotas as pro-
vided under section 317 shall no longer be in effect
for flue-cured tobacco.
‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD-
ERS THAT WERE PRINCIPAL PRODUCERS.—
‘‘(A) IN GENERAL.—On approval through
a referendum under subsection (c), each indi-
vidual quota holder under section 317 that was
a principal producer of flue-cured tobacco dur-
ing the 1998 marketing year, as determined by
the Secretary, shall be issued an individual to-
bacco production permit under this section.
‘‘(B) NOTIFICATION.—The Secretary shall
notify the holder of each permit of the individ-
ual acreage limitation and the individual mar-
keting limitation applicable to the holder for
each marketing year.
‘‘(C) INDIVIDUAL
ACREAGE
LIMITATION
FOR
1999
MARKETING
YEAR.—In establishing
the individual acreage limitation for the 1999
marketing year under this section, the farm
acreage allotment that was allotted to a farm
owned by the quota holder during the 1997
marketing year shall be considered the individ-
ual acreage limitation for the previous market-
ing year.
‘‘(D) INDIVIDUAL MARKETING LIMITATION
FOR
1999
MARKETING
YEAR.—In establishing
the individual marketing limitation for the 1999
marketing year under this section, the farm
marketing quota that was allotted to a farm
owned by the quota holder during the 1997
marketing year shall be considered the individ-
ual marketing limitation for the previous mar-
keting year.
‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN-
CIPAL PRODUCERS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), on approval through a ref-
erendum under subsection (c)—
‘‘(i) each person that was a quota
holder under section 317 but that was not
a principal producer of flue-cured tobacco
during the 1997 marketing year, as deter-
mined by the Secretary, shall not be eligi-
ble to own a permit; and
‘‘(ii) the Secretary shall not issue any
permit during the 25-year period beginning
on the date of enactment of this Act to any
person that was a quota holder and was
not the principal producer of flue-cured to-
bacco during the 1997 marketing year.
‘‘(B) MEDICAL HARDSHIPS AND CROP DIS-
ASTERS.—Subparagraph (A) shall not apply to
a person that would have been the principal
producer of flue-cured tobacco during the 1997
marketing year but for a medical hardship or
crop disaster that occurred during the 1997
marketing year.
‘‘(C) 
ADMINISTRATION.—The 
Secretary
shall issue regulations—
‘‘(i) defining the term ‘person’ for the
purpose of this paragraph; and
‘‘(ii) prescribing such rules as the Sec-
retary determines are necessary to ensure
a fair and reasonable application of the
prohibition established under this para-
graph.
‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL PRO-
DUCERS OF FLUE-CURED TOBACCO.—
‘‘(A) IN GENERAL.—On approval through
a referendum under subsection (c), each indi-
vidual quota lessee or quota tenant (as defined
in section 1002 of the LEAF Act) that was the
principal producer of flue-cured tobacco during
the 1997 marketing year, as determined by the
Secretary, shall be issued an individual tobacco
production permit under this section.
‘‘(B) 
INDIVIDUAL
ACREAGE
LIMITA-
TIONS.—In establishing the individual acreage
limitation for the 1999 marketing year under
this section, the farm acreage allotment that
was allotted to a farm owned by a quota holder
for whom the quota lessee or quota tenant was
the principal producer of flue-cured tobacco
during the 1997 marketing year shall be consid-
ered the individual acreage limitation for the
previous marketing year.
‘‘(C) INDIVIDUAL
MARKETING
LIMITA-
TIONS.—In establishing the individual market-
ing limitation for the 1999 marketing year
under this section, the individual marketing
limitation for the previous year for an individ-
ual described in this paragraph shall be cal-
culated by multiplying—
‘‘(i) the farm marketing quota that
was allotted to a farm owned by a quota
holder for whom the quota lessee or quota
holder was the principal producer of flue-
cured tobacco during the 1997 marketing
year, by
‘‘(ii) the ratio that—
‘‘(I) the sum of all flue-cured to-
bacco farm marketing quotas for the
1997 marketing year prior to adjust-
ing for undermarketing and over-
marketing; bears to
‘‘(II) the sum of all flue-cured to-
bacco farm marketing quotas for the
1998 marketing year, after adjusting
for undermarketing and overmarket-
ing.
‘‘(D) SPECIAL
RULE
FOR
TENANT
OF
LEASED FLUE-CURED TOBACCO.—If the farm
marketing quota or farm acreage allotment of a
quota holder was produced pursuant to an
agreement under which a quota lessee rented
land from a quota holder and a quota tenant
was the primary producer, as determined by the
Secretary, of flue-cured tobacco pursuant to the
farm marketing quota or farm acreage allot-
ment, the farm marketing quota or farm acre-
age allotment shall be divided proportionately
between the quota lessee and quota tenant for
purposes of issuing individual tobacco produc-
tion permits under this paragraph.
‘‘(5) OPTION
OF
QUOTA
LESSEE
OR
QUOTA
TENANT TO RELINQUISH PERMIT.—
‘‘(A) IN GENERAL.—Each quota lessee or
quota tenant that is issued an individual to-
bacco production permit under paragraph (4)
shall be given the option of relinquishing the
considered to have fully shared in the risk of
production of a crop if—
‘‘(i) the investment of the person in
the production of the crop is not less than
100 percent of the costs of production as-
sociated with the crop;
‘‘(ii) the amount of the person’s re-
turn on the investment is dependent solely
on the sale price of the crop; and
‘‘(iii) the person may not receive any
of the return before the sale of the crop.
‘‘(C) PERSONS NOT SHARING RISK.—
‘‘(i) FORFEITURE.—Any person that
fails to fully share in the risks of produc-
tion under this paragraph shall forfeit an
individual tobacco production permit if,
after notice and opportunity for a hearing,
the appropriate county committee deter-
mines that the conditions for forfeiture
exist.
‘‘(ii) REALLOCATION.—The Secretary
shall add the authority to produce flue-
cured tobacco under the individual tobacco
production permit forfeited under this sub-
paragraph to the county production pool
established under paragraph (8) for re-
allocation by the appropriate county com-
mittee.
‘‘(D) NOTICE.—Notice of any determina-
tion made by a county committee under sub-
paragraph (C) shall be mailed, as soon as prac-
ticable, to the person involved.
‘‘(E) REVIEW.—If the person is dissatis-
fied with the determination, the person may re-
quest, not later than 15 days after notice of the
determination is received, a review of the deter-
mination by a local review committee under the
procedures established under section 363 for
farm marketing quotas.
‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For
the 1999 and each subsequent crop of flue-cured to-
bacco, all tobacco produced pursuant to an individ-
ual tobacco production permit shall be produced in
the same county in which was produced the tobacco
produced during the 1997 marketing year pursuant
to the farm marketing quota or farm acreage allot-
ment on which the individual tobacco production
permit is based.
‘‘(8) COUNTY PRODUCTION POOL.—
‘‘(A) IN
GENERAL.—The authority to
produce flue-cured tobacco under an individual
tobacco production permit that is forfeited, re-
linquished, or surrendered within a county may
be reallocated by the appropriate county com-
mittee to tobacco producers located in the same
county that apply to the committee to produce
flue-cured tobacco under the authority.
‘‘(B) PRIORITY.—In reallocating individual
tobacco production permits under this para-
graph, a county committee shall provide a pri-
ority to—
‘‘(i) an active tobacco producer that
controls the authority to produce a quan-
tity of flue-cured tobacco under an individ-
ual tobacco production permit that is equal
to or less than the average number of
pounds of flue-cured tobacco that was pro-
duced by the producer during each of the
1995 through 1997 marketing years, as
determined by the Secretary; and
‘‘(ii) a new tobacco producer.
‘‘(C) CRITERIA.—Individual tobacco pro-
duction permits shall be reallocated by the ap-
propriate county committee under this para-
graph in a fair and equitable manner after tak-
ing into consideration—
‘‘(i) the experience of the producer;
‘‘(ii) the availability of land, labor,
and equipment for the production of to-
bacco;
‘‘(iii) crop rotation practices; and
‘‘(iv) the soil and other physical fac-
tors affecting the production of tobacco.
‘‘(D) MEDICAL HARDSHIPS AND CROP DIS-
ASTERS.—Notwithstanding any other provision
of this Act, the Secretary may issue an individ-
ual tobacco production permit under this para-
graph to a producer that is otherwise ineligible
for the permit due to a medical hardship or
crop disaster that occurred during the 1997
marketing year.
‘‘(c) REFERENDUM.—
‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT-
MENT.—Not later than December 15, 1998, the Sec-
retary pursuant to subsection (b) shall determine
and announce—
‘‘(A) the quantity of the national market-
ing quota for flue-cured tobacco for the 1999
marketing year; and
‘‘(B) the national acreage allotment and
national average yield goal for the 1999 crop of
flue-cured tobacco.
‘‘(2) SPECIAL REFERENDUM.—Not later than
30 days after the announcement of the quantity of
the national marketing quota, the Secretary shall
conduct a special referendum of the producers that
were the principal producers of flue-cured tobacco of
the 1997 crop to determine whether the producers
approve or oppose the establishment of individual to-
bacco production permits on an acreage-poundage
basis as provided in this section for the 1999
through 2001 marketing years.
‘‘(3) APPROVAL OF PERMITS.—If the Secretary
determines that more than 662⁄3 percent of the pro-
ducers voting in the special referendum approve the
establishment of individual tobacco production per-
mits on an acreage-poundage basis—
‘‘(A) individual tobacco production permits
on an acreage-poundage basis as provided in
this section shall be in effect for the 1999
through 2001 marketing years; and
‘‘(B) marketing quotas on an acreage-
poundage basis shall cease to be in effect for
the 1999 through 2001 marketing years.
ning of the marketing year to which the quota, allotment,
and goal apply.
‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL TO-
BACCO PRODUCTION PERMITS.—If a national marketing
quota, national acreage allotment, and national average
yield goal are determined and announced, the Secretary
shall provide for the determination of individual tobacco
production permits, individual acreage limitations, and in-
dividual marketing limitations under this section for the
crop and marketing year covered by the determinations.
‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION PER-
MITS.—
‘‘(1) LIMITATION TO SAME COUNTY.—Each in-
dividual tobacco production permit holder shall as-
sign the individual acreage limitation and individual
marketing limitation to 1 or more farms located
within the county of origin of the individual tobacco
production permit.
‘‘(2) FILING WITH COUNTY COMMITTEE.—The
assignment of an individual acreage limitation and
individual marketing limitation shall not be effective
until evidence of the assignment, in such form as re-
quired by the Secretary, is filed with and determined
by the county committee for the county in which the
farm involved is located.
‘‘(3) LIMITATION ON TILLABLE CROPLAND.—
The total acreage assigned to any farm under this
subsection shall not exceed the acreage of cropland
on the farm.
‘‘(g) PROHIBITION ON SALE OR LEASING OF INDI-
VIDUAL TOBACCO PRODUCTION PERMITS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the Secretary shall not permit
the sale and transfer, or lease and transfer, of an in-
dividual tobacco production permit issued under this
section.
‘‘(2) TRANSFER TO DESCENDANTS.—
‘‘(A) DEATH.—In the case of the death of
a person to whom an individual tobacco produc-
tion permit has been issued under this section,
the permit shall transfer to the surviving spouse
of the person or, if there is no surviving spouse,
to surviving direct descendants of the person.
‘‘(B) TEMPORARY INABILITY TO FARM.—
In the case of the death of a person to whom
an individual tobacco production permit has
been issued under this section and whose de-
scendants are temporarily unable to produce a
crop of tobacco, the Secretary may hold the li-
cense in the name of the descendants for a pe-
riod of not more than 18 months.
‘‘(3) VOLUNTARY TRANSFERS.—A person that
is eligible to obtain an individual tobacco production
permit under this section may at any time transfer
all or part of the permit to the person’s spouse or
direct descendants that are actively engaged in the
production of tobacco.
‘‘(h) RESERVE.—
‘‘(1) IN GENERAL.—For each marketing year
for which individual tobacco production permits are
in effect under this section, the Secretary may estab-
lish a reserve from the national marketing quota in
a quantity equal to not more than 1 percent of the
national marketing quota to be available for—
‘‘(A) making corrections of errors in indi-
vidual acreage limitations and individual mar-
keting limitations;
‘‘(B) adjusting inequities; and
‘‘(C) establishing individual tobacco pro-
duction permits for new tobacco producers (ex-
cept that not less than two-thirds of the reserve
shall be for establishing such permits for new
tobacco producers).
‘‘(2) ELIGIBLE PERSONS.—To be eligible for a
new individual tobacco production permit, a pro-
ducer must have owned a farm on which tobacco was
not produced or considered produced during the im-
mediately preceding 5 years.
‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.—
The part of the reserve held for apportionment to
new individual tobacco producers shall be allotted on
the basis of—
‘‘(A) land, labor, and equipment available
for the production of tobacco;
‘‘(B) crop rotation practices;
‘‘(C) soil and other physical factors affect-
ing the production of tobacco; and
‘‘(D) the past tobacco-producing experience
of the producer.
‘‘(4) PERMIT YIELD.—The permit yield for any
producer for which a new individual tobacco produc-
tion permit is established shall be determined on the
basis of available productivity data for the land in-
volved and yields for similar farms in the same coun-
ty.
‘‘(i) PENALTIES.—
‘‘(1) PRODUCTION ON OTHER FARMS.—If any
quantity of tobacco is marketed as having been pro-
duced under an individual acreage limitation or indi-
vidual marketing limitation assigned to a farm but
was produced on a different farm, the individual
acreage limitation or individual marketing limitation
for the following marketing year shall be forfeited.
‘‘(2) FALSE REPORT.—If a person to which an
individual tobacco production permit is issued files,
or aids or acquiesces in the filing of, a false report
with respect to the assignment of an individual acre-
age limitation or individual marketing limitation for
a quantity of tobacco, the individual acreage limita-
tion or individual marketing limitation for the fol-
lowing marketing year shall be forfeited.
‘‘(j) MARKETING PENALTIES.—
‘‘(1) IN
GENERAL.—When individual tobacco
production permits under this section are in effect,
provisions with respect to penalties for the market-
ing of excess tobacco and the other provisions con-
tained in section 314 shall apply in the same man-
ner and to the same extent as they would apply
under section 317(g) if farm marketing quotas were
in effect.
‘‘(2) PRODUCTION
ON
OTHER
FARMS.—If a
producer falsely identifies tobacco as having been
produced on or marketed from a farm to which an
individual acreage limitation or individual marketing
limitation has been assigned, future individual acre-
age limitations and individual marketing limitations
shall be forfeited.’’.
SEC. 1025. MODIFICATIONS IN FEDERAL TOBACCO PRO-
GRAMS.
(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 insert-
ing 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
type 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 type of
tobacco in a State, the Secretary shall conduct
a statewide referendum on any proposal related
to the lease and transfer of tobacco quota with-
in a State requested by the petition that is au-
thorized under this part.
‘‘(B) APPROVAL OF PROPOSALS.—If a ma-
jority of producers of the type of tobacco in the
State approve a proposal in a referendum con-
ducted under subparagraph (A), the Secretary
shall implement the proposal in a manner that
applies to all producers and quota holders of
that type 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)—
(A) by striking ‘‘(c) The amount’’ and in-
serting ‘‘(c) AMOUNT OF PENALTY.—For the
1998 and subsequent marketing years, the
amount’’; and
(B) by striking paragraph (1) and insert-
ing the following:
‘‘(1) 105 percent of the average market price
for the type of tobacco involved during the preceding
marketing year; and’’; 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 Com-
munity Revitalization Trust Fund established under sec-
tion 1011 of the LEAF Act.’’.
(c) ELIMINATION OF TOBACCO MARKETING ASSESS-
MENT.—
(1) IN GENERAL.—Section 106 of the Agricul-
tural Act of 1949 (7 U.S.C. 1445) is amended by
striking subsection (g).
(2) 
CONFORMING
AMENDMENT.—Section
422(c) of the Uruguay Round Agreements Act (Pub-
lic 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)’’.
(d) ADJUSTMENT FOR LAND RENTAL COSTS.—Sec-
tion 106 of the Agricultural Act of 1949 (7 U.S.C. 1445)
is amended by adding at the end the following:
‘‘(h) ADJUSTMENT FOR LAND RENTAL COSTS.—For
each of the 1999 and 2000 marketing years for flue-cured
tobacco, after consultation with producers, State farm or-
ganizations and cooperative associations, the Secretary
shall make an adjustment in the price support level for
flue-cured tobacco equal to the annual change in the aver-
age cost per pound to flue-cured producers, as determined
by the Secretary, under agreements through which pro-
ducers rent land to produce flue-cured tobacco.’’.
(e) FIRE-CURED AND DARK AIR-CURED TOBACCO
PROGRAMS.—
(1) 
LIMITATION
ON
TRANSFERS.—Section
318(g) of the Agricultural Adjustment Act of 1938
(7 U.S.C. 13l4d(g)) is amended—
(A) by striking ‘‘ten’’ and inserting ‘‘30’’;
and
(B) by inserting ‘‘during any crop year’’
after ‘‘transferred to any farm’’.
(2) LOSS OF ALLOTMENT OR QUOTA THROUGH
UNDERPLANTING.—Section 318 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1314d) is amend-
ed by adding at the end the following:
‘‘(k) LOSS OF ALLOTMENT OR QUOTA THROUGH
UNDERPLANTING.—Effective for the 1999 and subse-
quent marketing years, no acreage allotment or acreage-
poundage quota, other than a new marketing quota, shall
be established for a farm on which no fire-cured or dark
air-cured tobacco was planted or considered planted dur-
ing at least 2 of the 3 crop years immediately preceding
the crop year for which the acreage allotment or acreage-
poundage quota would otherwise be established.’’.
(f) EXPANSION OF TYPES OF TOBACCO SUBJECT TO
NO NET COST ASSESSMENT.—
(1) NO
NET
COST
TOBACCO
FUND.—Section
106A(d)(1)(A) of the Agricultural Act of 1949 (7
U.S.C. 1445–1(d)(1)(A)) is amended—
(A) in clause (ii), by inserting after ‘‘Bur-
ley quota tobacco’’ the following: ‘‘and fire-
cured and dark air-cured quota tobacco’’; and
(B) in clause (iii)—
(i) in the matter preceding subclause
(I), by striking ‘‘Flue-cured or Burley to-
bacco’’ and inserting ‘‘each kind of tobacco
for which price support is made available
under this Act, and each kind of like to-
bacco,’’; and
(ii) by striking subclause (II) and in-
serting the following:
‘‘(II) the sum of the amount of
the per pound producer contribution
and purchaser assessment (if any) for
the kind of tobacco payable under
clauses (i) and (ii); and’’.
(2) NO NET COST TOBACCO ACCOUNT.—Section
106B(d)(1) of the Agricultural Act of 1949 (7
U.S.C. 1445–2(d)(1)) is amended—
(A) in subparagraph (B), by inserting after
‘‘Burley quota tobacco’’ the following: ‘‘and
fire-cured and dark air-cured tobacco’’; and
(B) in subparagraph (C), by striking
‘‘Flue-cured and Burley tobacco’’ and inserting
‘‘each kind of tobacco for which price support
is made available under this Act, and each kind
of like tobacco,’’.
Subtitle C—Farmer and Worker
Transition Assistance
SEC. 1031. 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 eli-
gible to apply for adjustment assistance under this
section pursuant to a petition filed under subsection
(b) if the Secretary of Labor determines that a sig-
nificant number or proportion of the workers in the
workers’ firm or an appropriate subdivision of the
firm have become totally or partially separated, or
are threatened to become totally or partially sepa-
rated, and—
(A) the sales or production, or both, of the
firm or subdivision have decreased absolutely;
and
(B) the implementation of the national to-
bacco settlement contributed importantly to the
workers’ separation or threat of separation and
to the decline in the sales or production of the
firm or subdivision.
(2) DEFINITION
OF
CONTRIBUTED
IMPOR-
TANTLY.—In paragraph (1)(B), the term ‘‘contrib-
uted 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 ASSIST-
ANCE.—
(1) FILING OF PETITIONS.—A petition for cer-
tification of eligibility to apply for adjustment assist-
ance under this section may be filed by a group of
workers (including workers in any firm or subdivi-
sion of a firm involved in the manufacture, process-
ing, 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 the workers’ firm or subdivision
thereof is located.
(2) FINDINGS AND ASSISTANCE.—On 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 peti-
tion—
(i) make a preliminary finding as to
whether the petition meets the criteria de-
scribed 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 sub-
paragraph (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; CERTIFI-
CATIONS.—
(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). On
a determination that the petition meets the 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.—On the denial
of a certification with respect to a petition under
paragraph (1), the Secretary shall review the peti-
tion in accordance with the requirements of other
applicable assistance programs to determine if the
workers may be certified under the other programs.
(d) COMPREHENSIVE ASSISTANCE.—
(1) IN GENERAL.—Workers covered by a certifi-
cation 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 cer-
tification 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 $25,000,000.
(2) BENEFITS
AND
SERVICES.—The benefits
and services described in this paragraph are the fol-
lowing:
(A) Employment services of the type de-
scribed 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), ex-
cept that notwithstanding the provisions of sec-
tion 236(a)(2)(A) of that Act, the total amount
of payments for training under this section for
any fiscal year shall not exceed $12,500,000.
(C) Tobacco worker readjustment allow-
ances, which shall be provided in the same man-
ner as trade readjustment allowances are pro-
vided 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 that Act (19
U.S.C. 2291(a)(5)(C), 2291(c)), authoriz-
ing the payment of trade readjustment al-
lowances on a finding that it is not feasible
or appropriate to approve a training pro-
gram for a worker, shall not be applicable
to payment of allowances under this sec-
tion; and
(ii) notwithstanding the provisions of
section 233(b) of that 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 Sec-
retary of the type described in section
236(a) of that Act (19 U.S.C. 2296(a)) by
the later of—
(I) the last day of the 16th week
of the 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 the
worker.
In cases of extenuating circumstances re-
lating to enrollment of a worker in a train-
ing program under this section, the Sec-
retary may extend the time for enrollment
for a period of not to exceed 30 days.
(D) Job search allowances of the type de-
scribed in section 237 of the Trade Act of 1974
(19 U.S.C. 2297).
(E) Relocation allowances of the type de-
scribed in section 238 of the Trade Act of 1974
(19 U.S.C. 2298).
(e) INELIGIBILITY OF INDIVIDUALS RECEIVING PAY-
MENTS FOR LOST TOBACCO QUOTA.—No benefits or serv-
ices may be provided under this section to any individual
who has received payments for lost tobacco quota under
section 1021.
(f) FUNDING.—Of the amounts in the Trust Fund,
the Secretary may use not to exceed $25,000,000 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 of enactment of this Act.
(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 com-
prehensive assistance substantially similar to the as-
sistance provided by this section becomes effective.
SEC. 1032. 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 eligi-
ble students (determined in accordance with section 420F)
in institutions of higher education by providing farmer op-
portunity grants to all eligible students.
‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND DETER-
MINATIONS; APPLICATIONS.
‘‘(a) PROGRAM AUTHORITY AND METHOD OF DIS-
TRIBUTION.—
‘‘(1) PROGRAM
AUTHORITY.—From amounts
made available under section 1011(d)(5) of the
LEAF Act, the Secretary, during the period begin-
ning 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 (de-
termined in accordance with section 420F) for each
academic year during which that student is in at-
tendance at an institution of higher education, as an
undergraduate, a farmer opportunity grant in the
amount for which that student is eligible, as deter-
mined pursuant to subsection (b). Not less than 85
percent of the sums shall be advanced to eligible in-
stitutions prior to the start of each payment period
and shall be based on 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 begin-
ning of the academic term, an amount for which the
students are eligible, in cases where the eligible in-
stitution elects not to participate in the disburse-
ment 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 (includ-
ing 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 reduc-
tions established by the Secretary for the pur-
poses of this subparagraph, computed in ac-
cordance with this subpart. The schedule of re-
ductions 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 the institution.
‘‘(3) PROHIBITION.—No grant shall be awarded
under this subpart to any individual who is incarcer-
ated 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 re-
quired 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 bacca-
laureate degree or certificate or, in the case of
courses in English language instruction, to be
necessary to enable the student to utilize al-
ready 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 en-
rolled.
‘‘(3) PROHIBITION.—No student is entitled to
receive farmer opportunity grant payments concur-
rently from more than 1 institution or from the Sec-
retary 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 coordi-
nated 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 pur-
pose of this section. Any disbursement allowed to be made
by crediting the student’s account shall be limited to tui-
tion 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 de-
termined to be eligible under section 420F, the amount