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strain an active producer of tobacco from pro-
ducing a kind of tobacco in excess of the per-
mitted acreage for the kind of tobacco.
‘‘(4) COMPLIANCE WITH CONSERVATION AND AG-
RICULTURAL REQUIREMENTS.—As a condition of the
establishment of a crop acreage base or crop poundage
base, as applicable, for active producers of tobacco for
a crop of a kind of tobacco, the active producers of
tobacco shall agree, during the crop year for which the
crop acreage base or crop poundage base is
established—
‘‘(A) to comply with applicable conservation
requirements under subtitle B of title XII of the
Food Security Act of 1985 (16 U.S.C. 3811 et
seq.);
‘‘(B) to comply with applicable wetland
protection requirements under subtitle C of title
XII of the Act (16 U.S.C. 3821 et seq.);
‘‘(C) to use the land of the active producer
of tobacco, in a quantity equal to the crop acre-
age base for an agricultural or conserving use,
and not for a nonagricultural commercial or in-
dustrial use, as determined by the Secretary; and
‘‘(D) to effectively control noxious weeds
and otherwise maintain the land in accordance
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with sound agricultural practices, as determined
by the Secretary, if the agricultural or con-
serving use involves the noncultivation of any
portion of the land referred to in subparagraph
(C).
‘‘CHAPTER 3—TOBACCO COMMUNITY
ECONOMIC DEVELOPMENT GRANTS
‘‘SEC. 380O. TOBACCO COMMUNITY ECONOMIC DEVELOP-
MENT GRANTS.
‘‘(a) IN GENERAL.—The Secretary shall make grants
to eligible States in accordance with this section to pay the
cost of carrying out economic development initiatives in im-
pacted communities.
‘‘(b) APPLICATION.—To be eligible to receive payments
under this section, an eligible State shall prepare and sub-
mit to the Secretary an application at such time, in such
manner, and containing such information as the Secretary
may require, including—
‘‘(1) a description of the activities that the eligi-
ble State will carry out using amounts received under
the grant; and
‘‘(2) a description of the State department of ag-
riculture that will administer amounts received under
the grant.
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‘‘(c) AMOUNT OF GRANT.—From the amounts avail-
able to carry out this section, the Secretary shall allot—
‘‘(1) $20,000,000 to the State of Maryland;
‘‘(2) $14,000,000 to the State of Pennsylvania;
‘‘(3) $50,000,000 to the State of South Carolina;
and
‘‘(4) $50,000,000 to the State of North Carolina.
‘‘(d) PAYMENTS.—An eligible State that has an appli-
cation approved by the Secretary under subsection (b) shall
be entitled to a payment under this section, in 5 equal in-
stallments, in an amount that is equal to its allotment
under subsection (c).
‘‘(e) USE OF FUNDS.—Amounts received by an eligible
State under this section shall be used to carry out economic
development activities in impacted communities of the eligi-
ble State, as determined by the eligible State.
‘‘(f) TERMINATION DATE.—The authority provided by
this section terminates on September 30, 2008.
‘‘CHAPTER 4—COMPETITIVE GRANTS FOR
TOBACCO RESEARCH
‘‘SEC. 380Q. COMPETITIVE GRANTS FOR TOBACCO RE-
SEARCH.
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary shall make competitive grants
under section 406 of the Agricultural Research, Extension,
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and Education Reform Act of 1998 (7 U.S.C. 7626) to col-
leges and universities located in eligible States to conduct
research—
‘‘(1) to assist tobacco producers to diversify crops
or implement other means to reduce or eliminate the
reliance of the producers on the production of tobacco
or to promote alternative uses of tobacco or enhance
the quality of tobacco produced in the United States;
and
‘‘(2) to foster and facilitate development, evalua-
tion, and implementation of economically viable new
agricultural technologies and enterprises for rural
communities.
‘‘(b) GRANT DISTRIBUTION.—In making grants under
this section, the Secretary shall provide for an equitable dis-
tribution of the grants based on the volume of each kind
of tobacco that is produced in each eligible State, as deter-
mined by the Secretary
‘‘(c) TERMINATION DATE.—The authority provided by
this section terminates on September 30, 2008.
‘‘CHAPTER 5—FUNDING
‘‘SEC. 380S. TOBACCO TRUST FUND.
‘‘(a) ESTABLISHMENT.—There is established in the
Commodity Credit Corporation a revolving trust fund to
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be used in carrying out this subtitle (referred to in this sec-
tion as the ‘Fund’), consisting of—
‘‘(1) such amounts as are deposited in the Fund
under subsection (b);
‘‘(2) such amounts as are necessary from the
Commodity Credit Corporation; and
‘‘(3) any interest earned on investment of
amounts in the Fund under subsection (d).
‘‘(b) DEPOSITS.—Revenues from assessments collected
under section 380T shall be deposited in the Fund.
‘‘(c) EXPENDITURES.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3) and notwithstanding any other provision of
law, in addition to any other funds that may be
available, the Secretary may use from the Fund such
amounts as the Secretary determines are necessary—
‘‘(A) to make payments to tobacco quota
holders and traditional producers under chapter
1;
‘‘(B) to pay necessary expenses of the To-
bacco Quality Board and Production Boards
and to carry out the acreage limitation program
under chapter 2;
‘‘(C) to make tobacco community economic
development grants under chapter 3, in an
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amount equal to $16,800,000 for each of fiscal
years 2004 through 2008;
‘‘(D) to make competitive grants for tobacco
research under chapter 4, in an amount equal to
$12,000,000 for each of fiscal years 2004 through
2008;
‘‘(E) to make grants to each association
that has entered into a loan agreement with the
Commodity Credit Corporation under section
106A or 106B of the Agricultural Act of 1949 (7
U.S.C. 1445–1, 1445–2) (as in effect before the
effective date of this subtitle) to assist the asso-
ciation to transition to alternative methods of
marketing tobacco in accordance with a plan ap-
proved by the Secretary, with the grants allo-
cated on the basis of the proportion of tobacco
marketed by each association, in an amount not
to exceed $1,000,000 for each association for each
kind of tobacco for each of fiscal years 2004
through 2008;
‘‘(F) to make payments to appropriate to-
bacco warehouse associations, as determined by
the Secretary, in an amount not to exceed
$500,000 for each of fiscal years 2004 through
2008;