†
1123
HR 4520 EAS
facturer, packager, importer, distributor, or retailer of
smokeless tobacco products concurrently into the dis-
tribution chain of such products.
‘‘(4) The provisions of this subsection do not
apply to a tobacco product manufacturer or dis-
tributor of any smokeless tobacco product that does
not manufacture, package, or import smokeless to-
bacco products for sale or distribution within the
United States.
‘‘(5) A retailer of smokeless tobacco products
shall not be in violation of this subsection for pack-
aging that is supplied to the retailer by a tobacco
products manufacturer, importer, or distributor and
that is not altered by the retailer unless the retailer
offers for sale, sells, or distributes a smokeless tobacco
product that is not labeled in accordance with this
subsection.
‘‘(b) REQUIRED LABELS.—
‘‘(1) It shall be unlawful for any tobacco product
manufacturer, packager, importer, distributor, or re-
tailer of smokeless tobacco products to advertise or
cause to be advertised within the United States any
smokeless tobacco product unless its advertising bears,
in accordance with the requirements of this section,
one of the labels specified in subsection (a).
†
1124
HR 4520 EAS
‘‘(2) Each label statement required by subsection
(a) in smokeless tobacco advertising shall comply with
the standards set forth in this paragraph. For press
and poster advertisements, each such statement and
(where applicable) any required statement relating to
tar, nicotine, or other constituent yield shall—
‘‘(A) comprise at least 20 percent of the
area of the advertisement, and the warning area
shall be delineated by a dividing line of con-
trasting color from the advertisement; and
‘‘(B) the word ‘WARNING’ shall appear in
capital letters and each label statement shall ap-
pear in conspicuous and legible type. The text of
the label statement shall be black on a white
background, or white on a black background, in
an alternating fashion under the plan submitted
under paragraph (3).
‘‘(3)(A) The label statements specified in sub-
section (a)(1) shall be randomly displayed in each 12-
month period, in as equal a number of times as is
possible on each brand of the product and be ran-
domly distributed in all areas of the United States in
which the product is marketed in accordance with a
plan submitted by the tobacco product manufacturer,
†
1125
HR 4520 EAS
importer, distributor, or retailer and approved by the
Secretary.
‘‘(B) The label statements specified in subsection
(a)(1) shall be rotated quarterly in alternating se-
quence in advertisements for each brand of smokeless
tobacco product in accordance with a plan submitted
by the tobacco product manufacturer, importer, dis-
tributor, or retailer to, and approved by, the Sec-
retary.
‘‘(C) The Secretary shall review each plan sub-
mitted under subparagraph (B) and approve it if the
plan—
‘‘(i) will provide for the equal distribution
and display on packaging and the rotation re-
quired in advertising under this subsection; and
‘‘(ii) assures that all of the labels required
under this section will be displayed by the to-
bacco product manufacturer, importer, dis-
tributor, or retailer at the same time.
‘‘(D) This paragraph applies to a retailer only
if that retailer is responsible for or directs the label
statements under this section, unless the retailer dis-
plays in a location open to the public, an advertise-
ment that is not labeled in accordance with the re-
quirements of this subsection.
†
1126
HR 4520 EAS
‘‘(c) TELEVISION AND RADIO ADVERTISING.—It is un-
lawful to advertise smokeless tobacco on any medium of elec-
tronic communications subject to the jurisdiction of the
Federal Communications Commission.’’.
SEC. 1125. AUTHORITY TO REVISE SMOKELESS TOBACCO
PRODUCT WARNING LABEL STATEMENTS.
Section 3 of the Comprehensive Smokeless Tobacco
Health Education Act of 1986 (15 U.S.C. 4402), as amend-
ed by section 1123, is further amended by adding at the
end the following:
‘‘(d) AUTHORITY TO REVISE WARNING LABEL STATE-
MENTS.—The Secretary may, by a rulemaking conducted
under section 553 of title 5, United States Code, adjust the
format, type size, and text of any of the label requirements,
require color graphics to accompany the text, increase the
required label area from 30 percent up to 50 percent of the
front and rear panels of the package, or establish the format,
type size, and text of any other disclosures required under
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301
et seq.), if the Secretary finds that such a change would
promote greater public understanding of the risks associated
with the use of smokeless tobacco products.’’.
†
1127
HR 4520 EAS
SEC. 1126. TAR, NICOTINE, AND OTHER SMOKE CON-
STITUENT DISCLOSURE TO THE PUBLIC.
Section 4(a) of the Federal Cigarette Labeling and Ad-
vertising Act (15 U.S.C. 1333 (a)), as amended by section
1121, is further amended by adding at the end the fol-
lowing:
‘‘(4)(A) The Secretary shall, by a rulemaking
conducted under section 553 of title 5, United States
Code, determine (in the Secretary’s sole discretion)
whether cigarette and other tobacco product manufac-
turers shall be required to include in the area of each
cigarette advertisement specified by subsection (b) of
this section, or on the package label, or both, the tar
and nicotine yields of the advertised or packaged
brand. Any such disclosure shall be in accordance
with the methodology established under such regula-
tions, shall conform to the type size requirements of
subsection (b) of this section, and shall appear within
the area specified in subsection (b) of this section.
‘‘(B) Any differences between the requirements
established by the Secretary under subparagraph (A)
and tar and nicotine yield reporting requirements es-
tablished by the Federal Trade Commission shall be
resolved by a memorandum of understanding between
the Secretary and the Federal Trade Commission.
†
1128
HR 4520 EAS
‘‘(C) In addition to the disclosures required by
subparagraph (A) of this paragraph, the Secretary
may, under a rulemaking conducted under section
553 of title 5, United States Code, prescribe disclosure
requirements regarding the level of any cigarette or
other tobacco product constituent including any
smoke constituent. Any such disclosure may be re-
quired if the Secretary determines that disclosure
would be of benefit to the public health, or otherwise
would increase consumer awareness of the health con-
sequences of the use of tobacco products, except that
no such prescribed disclosure shall be required on the
face of any cigarette package or advertisement. Noth-
ing in this section shall prohibit the Secretary from
requiring such prescribed disclosure through a ciga-
rette or other tobacco product package or advertise-
ment insert, or by any other means under the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).
‘‘(D) This paragraph applies to a retailer only
if that retailer is responsible for or directs the label
statements required under this section, except that
this paragraph shall not relieve a retailer of liability
if the retailer sells or distributes tobacco products that
are not labeled in accordance with the requirements
of this subsection.’’.
†
1129
HR 4520 EAS
CHAPTER 3—PREVENTION OF ILLICIT
TRADE IN TOBACCO PRODUCTS
SEC. 1131. LABELING, RECORDKEEPING, RECORDS INSPEC-
TION.
Chapter IX of the Federal Food, Drug, and Cosmetic
Act, as added by section 1111, is further amended by adding
at the end the following:
‘‘SEC. 921. LABELING, RECORDKEEPING, RECORDS INSPEC-
TION.
‘‘(a) ORIGIN LABELING.—The label, packaging, and
shipping containers of tobacco products for introduction or
delivery for introduction into interstate commerce shall
bear the statement ‘sale only allowed in the United States.’
‘‘(b) REGULATIONS
CONCERNING
RECORDKEEPING
FOR TRACKING AND TRACING.—
‘‘(1) IN
GENERAL.—Not later than 9 months
after the date of enactment of the Family Smoking
Prevention and Tobacco Control Act, the Secretary
shall promulgate regulations regarding the establish-
ment and maintenance of records by any person who
manufactures, processes, transports, distributes, re-
ceives, packages, holds, exports, or imports tobacco
products.
‘‘(2) INSPECTION.—In promulgating the regula-
tions described in paragraph (1), the Secretary shall
†
1130
HR 4520 EAS
consider which records are needed for inspection to
monitor the movement of tobacco products from the
point of manufacture through distribution to retail
outlets to assist in investigating potential illicit
trade, smuggling or counterfeiting of tobacco products.
‘‘(3) CODES.—The Secretary may require codes
on the labels of tobacco products or other designs or
devices for the purpose of tracking or tracing the to-
bacco product through the distribution system.
‘‘(4) SIZE OF BUSINESS.—The Secretary shall
take into account the size of a business in promul-
gating regulations under this section.
‘‘(5) RECORDKEEPING BY RETAILERS.—The Sec-
retary shall not require any retailer to maintain
records relating to individual purchasers of tobacco
products for personal consumption.
‘‘(c) RECORDS INSPECTION.—If the Secretary has a
reasonable belief that a tobacco product is part of an illicit
trade or smuggling or is a counterfeit product, each person
who manufactures, processes, transports, distributes, re-
ceives, holds, packages, exports, or imports tobacco products
shall, at the request of an officer or employee duly des-
ignated by the Secretary, permit such officer or employee,
at reasonable times and within reasonable limits and in
a reasonable manner, upon the presentation of appropriate
†
1131
HR 4520 EAS
credentials and a written notice to such person, to have ac-
cess to and copy all records (including financial records)
relating to such article that are needed to assist the Sec-
retary in investigating potential illicit trade, smuggling or
counterfeiting of tobacco products.
‘‘(d) KNOWLEDGE OF ILLEGAL TRANSACTION.—If the
manufacturer or distributor of a tobacco product has knowl-
edge which reasonably supports the conclusion that a to-
bacco product manufactured or distributed by such manu-
facturer or distributor that has left the control of such per-
son may be or has been—
‘‘(A) imported, exported, distributed or of-
fered for sale in interstate commerce by a person
without paying duties or taxes required by law;
or
‘‘(B) imported, exported, distributed or di-
verted for possible illicit marketing,
the manufacturer or distributor shall promptly notify the
Attorney General of such knowledge.
‘‘(2) KNOWLEDGE
DEFINED.—For purposes of
this subsection, the term ‘knowledge’ as applied to a
manufacturer or distributor means—
‘‘(A) the actual knowledge that the manu-
facturer or distributor had; or
†
1132
HR 4520 EAS
‘‘(B) the knowledge which a reasonable per-
son would have had under like circumstances or
which would have been obtained upon the exer-
cise of due care.
SEC. 1132. STUDY AND REPORT.
(a) STUDY.—The Comptroller General of the United
States shall conduct a study of cross-border trade in tobacco
products to—
(1) collect data on cross-border trade in tobacco
products, including illicit trade and trade of counter-
feit tobacco products and make recommendations on
the monitoring of such trade;
(2) collect data on cross-border advertising (any
advertising intended to be broadcast, transmitted, or
distributed from the United States to another coun-
try) of tobacco products and make recommendations
on how to prevent or eliminate, and what technologies
could help facilitate the elimination of, cross-border
advertising.
(b) REPORT.—Not later than 18 months after the date
of enactment of this Act, the Comptroller General of the
United States shall submit to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Com-
mittee on Energy and Commerce of the House of Represent-
atives a report on the study described in subsection (a).
†
1133
HR 4520 EAS
Subtitle B—Tobacco Market
Transition
SEC. 1140. SHORT TITLE OF SUBTITLE.
This subtitle may be cited as the ‘‘Tobacco Market
Transition Act of 2004’’.
CHAPTER 1—TERMINATION OF CURRENT
TOBACCO PROGRAMS
SEC. 1141. TERMINATION OF TOBACCO PRODUCTION AD-
JUSTMENT PROGRAMS.
(a) TOBACCO STATISTICS.—The Act of January 14,
1929 (45 Stat. 1079; 7 U.S.C. 501 et seq.) is repealed.
(b) TOBACCO STANDARDS.—The Tobacco Inspection
Act (7 U.S.C. 511 et seq.) is repealed.
(c) TOBACCO INSPECTIONS.—Section 213 of the To-
bacco Adjustment Act of 1983 (7 U.S.C. 511r) is repealed.
(d) TOBACCO CONTROL.—The Act of April 25, 1936
(commonly known as the Tobacco Control Act; 7 U.S.C. 515
et seq.), is repealed.
(e) 
COMMODITY
HANDLING
ORDERS.—Section
8c(2)(A) of the Agricultural Adjustment Act (7 U.S.C.
608c(2)(A)), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, is amended by
striking ‘‘tobacco,’’.
(f) PROCESSING TAX.—Section 9(b) of the Agricultural
Adjustment Act (7 U.S.C. 609(b)), reenacted with amend-
†
1134
HR 4520 EAS
ments by the Agricultural Marketing Agreement Act of
1937, is amended—
(1) in paragraph (2), by striking ‘‘tobacco,’’; and
(2) in paragraph (6)B)(i), by striking ‘‘, or, in
the case of tobacco, is less than the fair exchange value
by not more than 10 per centum,’’.
(g) BURLEY TOBACCO IMPORT REVIEW.—Section 3 of
Public Law 98–59 (7 U.S.C. 625) is repealed.
(h) DECLARATION OF POLICY.—Section 2 of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1282) is amend-
ed by striking ‘‘tobacco,’’.
(i) DEFINITIONS.—Section 301(b) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1301(b)) is amended—
(1) in paragraph (3)—
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as
subparagraph (C);
(2) in paragraph (6)(A), by striking ‘‘tobacco,’’;
(3) in paragraph (10)—
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B);
(4) in paragraph (11)(B), by striking ‘‘and to-
bacco’’;
(5) in paragraph (12), by striking ‘‘tobacco,’’;
†
1135
HR 4520 EAS
(6) in paragraph (14)—
(A) in subparagraph (A), by striking ‘‘(A)’’;
and
(B) by striking subparagraphs (B), (C), and
(D);
(7) by striking paragraph (15);
(8) in paragraph (16)—
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B);
(9) by striking paragraph (17); and
(10) by redesignating paragraph (16) as para-
graph (15).
(j) PARITY PAYMENTS.—Section 303 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1303) is amended
in the first sentence by striking ‘‘rice, or tobacco,’’ and in-
serting ‘‘or rice,’’.
(k) MARKETING QUOTAS.—Part I of subtitle B of title
III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1311 et seq.) is repealed.
(l) ADMINISTRATIVE PROVISIONS.—Section 361 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is
amended by striking ‘‘tobacco,’’.
†
1136
HR 4520 EAS
(m) ADJUSTMENT OF QUOTAS.—Section 371 of the Ag-
ricultural Adjustment Act of 1938 (7 U.S.C. 1371) is
amended—
(1) in the first sentence of subsection (a), by
striking ‘‘rice, or tobacco’’ and inserting ‘‘or rice’’;
and
(2) in the first sentence of subsection (b), by
striking ‘‘rice, or tobacco’’ and inserting ‘‘or rice’’.
(n) REPORTS AND RECORDS.—Section 373 of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1373) is
amended—
(1) by striking ‘‘rice, or tobacco’’ each place it
appears in subsections (a) and (b) and inserting ‘‘or
rice’’; and
(2) in subsection (a)—
(A) in the first sentence, by striking ‘‘all
persons engaged in the business of redrying,
prizing, or stemming tobacco for producers,’’;
and
(B) in the last sentence, by striking ‘‘$500;’’
and all that follows through the period at the end
of the sentence and inserting ‘‘$500.’’.
(o) REGULATIONS.—Section 375 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1375) is amended—
†
1137
HR 4520 EAS
(1) in subsection (a), by striking ‘‘peanuts, or to-
bacco’’ and inserting ‘‘or peanuts’’; and
(2) by striking subsection (c).
(p) EMINENT DOMAIN.—Section 378 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1378) is amended—
(1) in the first sentence of subsection (c), by
striking ‘‘cotton, and tobacco’’ and inserting ‘‘and
cotton’’; and
(2) by striking subsections (d), (e), and (f).
(q) BURLEY TOBACCO FARM RECONSTITUTION.—Sec-
tion 379 of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1379) is amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)’’; and
(B) in paragraph (6), by striking ‘‘, but
this clause (6) shall not be applicable in the case
of burley tobacco’’; and
(2) by striking subsections (b) and (c).
(r) ACREAGE-POUNDAGE QUOTAS.—Section 4 of the
Act of April 16, 1955 (Public Law 89–12; 7 U.S.C. 1314c
note), is repealed.
(s) BURLEY TOBACCO ACREAGE ALLOTMENTS.—The
Act of July 12, 1952 (7 U.S.C. 1315), is repealed.
†
1138
HR 4520 EAS
(t) TRANSFER OF ALLOTMENTS.—Section 703 of the
Food and Agriculture Act of 1965 (7 U.S.C. 1316) is re-
pealed.
(u) ADVANCE RECOURSE LOANS.—Section 13(a)(2)(B)
of the Food Security Improvements Act of 1986 (7 U.S.C.
1433c–1(a)(2)(B)) is amended by striking ‘‘tobacco and’’.
(v) TOBACCO FIELD MEASUREMENT.—Section 1112 of
the Omnibus Budget Reconciliation Act of 1987 (Public
Law 100–203) is amended by striking subsection (c).
SEC. 1142. TERMINATION OF TOBACCO PRICE SUPPORT
PROGRAM.
(a) PARITY PRICE SUPPORT.—Section 101 of the Agri-
cultural Act of 1949 (7 U.S.C. 1441) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘tobacco (except as otherwise provided here-
in), corn,’’ and inserting ‘‘corn’’;
(2) by striking subsections (c), (g), (h), and (i);
(3) in subsection (d)(3)—
(A) by striking ‘‘, except tobacco,’’; and
(B) by striking ‘‘and no price support shall
be made available for any crop of tobacco for
which marketing quotas have been disapproved
by producers;’’; and
(4) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
†
1139
HR 4520 EAS
(b) TERMINATION OF TOBACCO PRICE SUPPORT AND
NO NET COST PROVISIONS.—Sections 106, 106A, and 106B
of the Agricultural Act of 1949 (7 U.S.C. 1445, 1445–1,
1445–2) are repealed.
(c) DEFINITION
OF
BASIC
AGRICULTURAL
COM-
MODITY.—Section 408(c) of the Agricultural Act of 1949 (7
U.S.C. 1428(c)) is amended by striking ‘‘tobacco,’’.
(d) REVIEW OF BURLEY TOBACCO IMPORTS.—Section
3 of Public Law 98–59 (7 U.S.C. 625) is repealed.
(e) POWERS OF COMMODITY CREDIT CORPORATION.—
Section 5 of the Commodity Credit Corporation Charter Act
(15 U.S.C. 714c) is amended by inserting ‘‘(other than to-
bacco)’’ after ‘‘agricultural commodities’’ each place it ap-
pears.
SEC. 1143. LIABILITY.
This title and the amendments made by this title shall
not affect the liability of any person under any provision
of law with respect to any crop of tobacco planted before
the effective date prescribed in section 1162.
CHAPTER 2—TOBACCO ASSISTANCE
SEC. 1151. TOBACCO ASSISTANCE.
Title III of the Agricultural Adjustment Act of 1938
is amended by inserting after subtitle D (7 U.S.C. 1379a
et seq.) the following:
†
1140
HR 4520 EAS
‘‘Subtitle E—Tobacco Assistance
‘‘SEC. 380A. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) ACTIVE PRODUCER OF TOBACCO.—The term
‘active producer of tobacco’ means a person that—
‘‘(A) is actively engaged in the production
of tobacco marketed or considered planted; and
‘‘(B) shares in the risk of producing the to-
bacco.
‘‘(2) APPLICABLE FISCAL YEAR.—The term ‘ap-
plicable fiscal year’ means each of fiscal years 2004
through 2013.
‘‘(3) BASE
PERIOD.—The term ‘base period’
means the 1-year period ending the June 30 pre-
ceding each applicable fiscal year.
‘‘(4) CONSIDERED PLANTED.—The term ‘consid-
ered planted’ means tobacco planted but failed to be
produced as a result of a natural disaster, as deter-
mined by the Secretary.
‘‘(5) DEPARTMENT.—The term ‘Department’
means the Department of Agriculture.
‘‘(6) ELIGIBLE STATE.—The term ‘eligible State’
means—
†
1141
HR 4520 EAS
‘‘(A) in the case of section 380O, each of the
States of Maryland, Pennsylvania, South Caro-
lina, and North Carolina; and
‘‘(B) in the case of section 380Q, each of the
States of Alabama, Arkansas, Florida, Georgia,
Indiana, Kansas, Kentucky, Minnesota, Mis-
souri, North Carolina, Ohio, Oklahoma, South
Carolina, Tennessee, Virginia, West Virginia,
and Wisconsin.
‘‘(7) IMPACTED
COMMUNITY.—The term ‘im-
pacted community’ means a community in an eligible
State that is adversely affected by a reduction in
gross receipts from the sale of tobacco.
‘‘(8) MARKET SHARE.—The term ‘market share’
means the share of each manufacturer or importer of
a class of tobacco product (expressed as a decimal to
the fourth place) of the total volume of domestic sales
of the class of tobacco product during the base period
for the applicable fiscal year for an assessment under
section 380T.
‘‘(9) PRODUCTION BOARD.—The term ‘Produc-
tion Board’ means a Production Board established for
a kind of tobacco under section 380H.
‘‘(10) QUOTA
TOBACCO.—The term ‘quota to-
bacco’ means a kind of tobacco that is subject to a
†
1142
HR 4520 EAS
farm marketing quota or farm acreage allotment for
the 2002 tobacco marketing years under a marketing
quota or allotment program established under part I
of subtitle B (as in effect before the effective date of
this subtitle).
‘‘(11) TOBACCO.—The term ‘tobacco’ means each
of the following kinds of tobacco:
‘‘(A) Flue-cured tobacco, comprising types
11, 12, 13, and 14.
‘‘(B) Fire-cured tobacco, comprising types
22 and 23.
‘‘(C) Dark air-cured tobacco, comprising
types 35 and 36.
‘‘(D) Virginia sun-cured tobacco, com-
prising type 37.
‘‘(E) Virginia fire-cured tobacco, com-
prising type 21.
‘‘(F) Burley tobacco, comprising type 31.
‘‘(G) Cigar-filler and cigar-binder tobacco,
comprising types 42, 43, 44, 53, 54, and 55.
‘‘(12) TOBACCO QUALITY BOARD.—The term ‘To-
bacco Quality Board’ means the Tobacco Quality
Board established under section 380G.
†
1143
HR 4520 EAS
‘‘(13) TOBACCO QUOTA HOLDER.—The term ‘to-
bacco quota holder’ means a person that is considered
an tobacco quota holder under section 380B(b).
‘‘(14) TOBACCO
TRUST
FUND.—The term ‘To-
bacco Trust Fund’ means the Tobacco Trust Fund es-
tablished under section 380S.
‘‘(15) TRADITIONAL PRODUCER OF TOBACCO.—
The term ‘traditional producer of tobacco’ means a
person that, for at least 1 of the 2000, 2001, or 2002
tobacco marketing years—
‘‘(A) was actively engaged in the production
of tobacco marketed, or considered planted, under
a marketing quota established under part I of
subtitle B (as in effect before the effective date of
this subtitle); and
‘‘(B) shared in the risk of producing the to-
bacco.
‘‘(16) TRADITIONAL TOBACCO COUNTY.—
‘‘(A) IN GENERAL.—The term ‘traditional
tobacco county’ means a county in the United
States that had 1 or more farms operated by tra-
ditional producers of tobacco under a marketing
quota for at least 1 of the marketing years de-
scribed in paragraph (15).
†
1144
HR 4520 EAS
‘‘(B) INCLUSION.—For the purpose of deter-
mining the crop acreage base of an active pro-
ducer of tobacco for a kind of tobacco produced
in the State of Georgia under section 380I(c)(3),
the term ‘traditional tobacco county’ includes a
county that is contiguous to a county described
in subparagraph (A).
‘‘CHAPTER 
1—PAYMENTS 
TO 
TOBACCO
QUOTA HOLDERS AND TRADITIONAL
PRODUCERS
‘‘SEC. 380B. TRANSITION PAYMENTS TO TOBACCO QUOTA
HOLDERS.
‘‘(a) IN GENERAL.—The Secretary shall make transi-
tion payments to each tobacco quota holder.
‘‘(b) TOBACCO QUOTA HOLDER.—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this subsection, the Secretary shall consider a per-
son to be a tobacco quota holder under this section if
the person held, as of July 1, 2002, a basic quota or
farm acreage allotment (as applicable) for quota to-
bacco established for the 2002 tobacco marketing year
under a marketing quota program established under
part I of subtitle B (as in effect before the effective
date of this subtitle).
†
1145
HR 4520 EAS
‘‘(2) EFFECT OF PURCHASE CONTRACT.—If there
was an agreement for the purchase of all or part of
a farm described in paragraph (1) as of July 1, 2002,
and the parties to the sale are unable to agree to the
disposition of eligibility for payments under this sec-
tion, 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.
‘‘(3) EFFECT OF AGREEMENT FOR PERMANENT
QUOTA TRANSFER.—If the Secretary determines that
there was in existence, as of July 1, 2002, an agree-
ment 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.
‘‘(4) PROTECTED BASES.—A person that owns a
farm with a tobacco poundage quota that is protected
under a conservation reserve program contract en-
tered into under section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) shall be considered to
†
1146
HR 4520 EAS
be a tobacco quota holder with respect to the protected
poundage.
‘‘(5) QUANTITY OF QUOTA HELD.—
‘‘(A) IN GENERAL.—A person shall be con-
sidered a tobacco quota holder for purposes of
this section only with respect to that quantity of
quota that qualifies the person as a tobacco
quota holder.
‘‘(B) INCLUDED
QUOTA.—The determina-
tion of the tobacco poundage amount for which
the person qualifies shall—
‘‘(i) be based on the quantity of quota
held by person on January 1, 2004;
‘‘(ii) subject to clause (iii), not be
greater than the quantity of quota held by
the person for the 2002 crop; and
‘‘(iii) take into account—
‘‘(I) sales of quota that occurred
during the period beginning July 1,
2002, and ending December 31, 2004;
and
‘‘(II) any transfers of quota that
took place after July 1, 2002.
‘‘(c) APPLICATION.—
†
1147
HR 4520 EAS
‘‘(1) IN GENERAL.—To be eligible to receive a
payment under this section, a person shall submit to
the Secretary an application containing such infor-
mation as the Secretary may require to demonstrate
to the satisfaction of the Secretary that the person is
a tobacco quota holder.
‘‘(2) ADMINISTRATION.—The application shall be
submitted within such time, in such form, and in
such manner as the Secretary may require.
‘‘(d) BASE QUOTA LEVEL.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a base quota level applicable to each tobacco quota
holder, as determined under this subsection.
‘‘(2) LEVEL.—The base quota level for each to-
bacco quota holder shall be equal to the quantity of
quota that qualifies a person as the tobacco quota
holder under subsection (b)(5).
‘‘(e) PAYMENT.—The Secretary shall make payments
to each tobacco quota holder under subsection (b) in an
amount obtained by multiplying—
‘‘(1) 80 cents per pound for each of fiscal years
2004 through 2013; by
‘‘(2) the base quota level established for the quota
holder under subsection (d).
†
1148
HR 4520 EAS
‘‘(f) TIME FOR PAYMENT.—Subject to section 380D(c),
the payments to tobacco quota holders required under this
section shall be made by, to the maximum extent prac-
ticable, the date that is 180 days after the date of enactment
of this subtitle and each November 1 thereafter.
‘‘SEC. 380C. DIRECT PAYMENTS TO TRADITIONAL PRO-
DUCERS OF TOBACCO.
‘‘(a) IN GENERAL.—The Secretary shall make direct
payments under this section to traditional producers of to-
bacco.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—To be eligible to receive a
payment under this section, a person shall submit to
the Secretary an application containing such infor-
mation as the Secretary may require to demonstrate
to the satisfaction of the Secretary that the person is
a traditional producer of tobacco.
‘‘(2) ADMINISTRATION.—The application shall be
submitted within such time, in such form, and in
such manner as the Secretary may require.
‘‘(c) BASE QUOTA LEVEL.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a base quota level applicable to each traditional pro-
ducer of tobacco, as determined under this subsection.
†
1149
HR 4520 EAS
‘‘(2) FLUE-CURED
AND
BURLEY
TOBACCO.—In
the case of Flue-cured tobacco (types 11, 12, 13, and
14) and Burley tobacco (type 31), the base quota level
for each tobacco quota holder shall be equal to the ef-
fective tobacco marketing quota (irrespective of dis-
aster lease and transfers) under part I of subtitle B
(as in effect before the effective date of this subtitle)
for the 2002 marketing year for quota tobacco pro-
duced on the farm.
‘‘(3) OTHER KINDS OF TOBACCO.—In the case of
each kind of tobacco other than Flue-cured tobacco
(types 11, 12, 13, and 14) and Burley tobacco (type
31), for the purpose of calculating a payment to a
traditional producer of tobacco, the base quota level
for the traditional producer of tobacco shall be the
quantity obtained by multiplying—
‘‘(A) the basic tobacco farm acreage allot-
ment for the 2002 marketing year established by
the Secretary for quota tobacco produced on the
farm; by
‘‘(B) the actual yield of the crop of quota to-
bacco produced on the farm.
‘‘(d) PAYMENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall make payments to each traditional
†
1150
HR 4520 EAS
producer of tobacco, as determined under subsection
(b), in an amount obtained by multiplying—
‘‘(A) 40 cents per pound for each of fiscal
years 2004 through 2013; by
‘‘(B) the base quota level established for the
traditional producer of tobacco under subsection
(c).
‘‘(2) PAYMENT RATE.—The rate for payments to
a traditional producer of quota tobacco under para-
graph (1)(A) shall be equal to—
‘‘(A) in the case of a person that produced
quota tobacco marketed, or considered planted,
under a marketing quota for all 3 of the 2000,
2001, and 2002 tobacco marketing years, the rate
prescribed under paragraph (1)(A) for the appli-
cable fiscal year;
‘‘(B) in the case of a person that produced
quota tobacco marketed, or considered planted,
under a marketing quota for not more than 2 of
the 2000, 2001, and 2002 tobacco marketing
years, 2⁄3 of the rate prescribed under paragraph
(1)(A) for the applicable fiscal year; and
‘‘(C) in the case of a person that produced
quota tobacco marketed, or considered planted,
under a marketing quota for not more than 1 of
†
1151
HR 4520 EAS
the 2000, 2001, and 2002 tobacco marketing
years, 1⁄3 of the rate prescribed under paragraph
(1)(A) for the applicable fiscal year.
‘‘(e) TIME FOR PAYMENT.—Subject to section 380D(c),
the payments to traditional producers of tobacco required
under this section shall be made by, to the maximum extent
practicable, the date that is 180 days after the date of enact-
ment of this subtitle and each November 1 thereafter.
‘‘SEC. 380D. ADMINISTRATION.
‘‘(a) RESOLUTION OF DISPUTES.—
‘‘(1) IN GENERAL.—Any dispute regarding the
eligibility of a person to receive a payment under this
subtitle, or the amount of the payment, may be ap-
pealed to the county committee established under sec-
tion 8 of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h) for the county or other
area in which the farming operation of the person is
located.
‘‘(2) NATIONAL APPEALS DIVISION.—Any adverse
determination of a county committee under subsection
(a) may be appealed to the National Appeals Division
established under subtitle H of the Department of Ag-
riculture Reorganization Act of 1994 (7 U.S.C. 6991
et seq.).
†
1152
HR 4520 EAS
‘‘(b) USE OF QUALIFIED FINANCIAL INSTITUTIONS.—
The Secretary may use qualified financial institutions to
manage assets, make payments, and otherwise carry out
this subtitle.
‘‘(c) ADVANCED PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall permit a
tobacco quota holder and a traditional producer of to-
bacco to elect to receive advanced payments for 2 or
more fiscal years under this chapter by selecting 1 of
4 advance payment options established by the Sec-
retary, including a lump sum payment option.
‘‘(2) RISK.—A tobacco quota holder or tradi-
tional producer of tobacco that elects to receive accel-
erated payments shall bear the expense of the discount
in value for acceleration of the payments.
‘‘(3) QUALIFIED FINANCIAL INSTITUTIONS.—
‘‘(A) IN
GENERAL.—The Secretary shall
provide advanced payments under this sub-
section through 1 or more qualified financial in-
stitutions designated by the Secretary.
‘‘(B) ADMINISTRATION.—In providing ad-
vanced payments under this subsection, a quali-
fied financial institution shall (in accordance
with guidance issued by the Secretary)—
†
1153
HR 4520 EAS
‘‘(i) offer the advanced payments re-
gardless of the location or size of the pay-
ments;
‘‘(ii) apply updated discount rates that
vary only by payment term; and
‘‘(iii) distribute the advanced pay-
ments in accordance with the option elected
by the tobacco quota holder or traditional
producer of tobacco.
‘‘(4) COUNTY OFFICES.—A county office of the
Department may receive applications and other docu-
mentation necessary to receive advanced payments
under this subsection, on behalf of the Secretary and
qualified financial institutions.
‘‘(d) TREATMENT OF PAYMENTS.—Payments received
by a tobacco quota holder or traditional producer of tobacco
under this chapter shall be considered received not earlier
than the date the tobacco quota holder or traditional pro-
ducer of tobacco first receives the payments.
‘‘CHAPTER 2—TOBACCO QUALITY AND
QUANTITY
‘‘SEC. 380G. TOBACCO QUALITY BOARD.
‘‘(a) IN GENERAL.—The Secretary shall establish a
permanent advisory board within the Department, to be
known as the ‘Tobacco Quality Board’.
†
1154
HR 4520 EAS
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The Tobacco Quality Board
shall consist of 13 members, of which—
‘‘(A) 5 members shall be appointed by the
Secretary from nominations submitted by rep-
resentatives of tobacco producers in the United
States, including at least—
‘‘(i) 1 representative of Flue-cured to-
bacco producers;
‘‘(ii) 1 representative of Burley tobacco
producers; and
‘‘(iii) 1 representative of dark fire-
cured tobacco producers;
‘‘(B) 5 members shall be appointed by the
Secretary from nominations submitted by rep-
resentatives of tobacco product manufacturers in
the United States, including at least—
‘‘(i) 1 representative of smokeless to-
bacco product manufacturers; and
‘‘(ii) 1 representative of export dealers
of tobacco; and
‘‘(C) 3 at-large members shall be appointed
by the Secretary, including at least 1 officer or
employee of the Department.
†
1155
HR 4520 EAS
‘‘(2) CHAIRPERSON.—The Secretary shall ap-
point the chairperson of the Tobacco Quality Board,
with a different member serving as chairperson of the
Tobacco Quality Board each term.
‘‘(3) TERMS.—Each member of the Tobacco
Quality Board shall serve for 2-year terms, except
that the terms of the members first appointed to the
Tobacco Quality Board shall be staggered so as to es-
tablish a rotating membership of the Tobacco Quality
Board, as determined by the Secretary.
‘‘(c) DUTIES.—The Tobacco Quality Board shall—
‘‘(1) determine and describe the physical charac-
teristics of tobacco produced in the United States and
unmanufactured tobacco imported into the United
States;
‘‘(2) assemble and evaluate, in a systematic
manner, concerns and problems with the quality of
tobacco produced in the United States, expressed by
domestic and foreign buyers and manufacturers of to-
bacco products;
‘‘(3) review data collected by Federal agencies on
the physical and chemical integrity of tobacco pro-
duced in the United States and unmanufactured to-
bacco imported into the United States, to ensure that
tobacco being used in domestically-manufactured to-
†
1156
HR 4520 EAS
bacco products is of the highest quality and is free
from prohibited physical and chemical agents;
‘‘(4) 
investigate 
and 
communicate 
to 
the
Secretary—
‘‘(A) conditions with respect to the produc-
tion of tobacco that discourage improvements in
the quality of tobacco produced in the United
States; and
‘‘(B) 
recommendations 
for 
regulatory
changes that would address tobacco quality
issues;
‘‘(5) conduct oversight regarding tobacco mar-
keting issues (such as opening sales dates and mar-
keting regulations) applicable to auction markets;
‘‘(6) provide assistance to Federal agencies on
actions taken by the Federal agencies that affect the
quality or quantity of tobacco produced in the United
States;
‘‘(7) not later than a date determined by the Sec-
retary, make recommendations to the Secretary, and
the applicable Production Board established for the
kind of tobacco, on the range of base years for the
maximum 
crop 
acreage 
base 
under 
section
380I(c)(3)(B), and for the maximum crop poundage
base under section 380I(d)(3)(B), for each crop of
†
1157
HR 4520 EAS
each kind of tobacco, except that the range of base
years shall be the crop years for the 1998 through
2002 crops unless otherwise determined by the To-
bacco Quality Board; and
‘‘(8) carry out such other related activities as are
assigned to the Tobacco Quality Board by the Sec-
retary.
‘‘(d) ADMINISTRATION.—The Secretary shall provide
the Tobacco Quality Board with (as determined by the Sec-
retary)—
‘‘(1) a staff that is—
‘‘(A) experienced in the sampling and anal-
ysis of unmanufactured tobacco; and
‘‘(B) capable of collecting data and moni-
toring tobacco production information; and
‘‘(2) other resources and information necessary
for the Tobacco Quality Board to perform the duties
of the Tobacco Quality Board under this subtitle,
including—
‘‘(A) information concerning acreage de-
voted to the production of each kind of tobacco;
and
‘‘(B) international information from the
Foreign Agricultural Service.
†
1158
HR 4520 EAS
‘‘(e) APPLICABILITY
OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the Tobacco Quality Board.
‘‘SEC. 380H. PRODUCTION BOARDS.
‘‘(a) IN GENERAL.—The Secretary shall establish a
permanent advisory board for each kind of tobacco, to be
known as a ‘Production Board’.
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a
Production Board for a kind of tobacco shall consist
of—
‘‘(A) not more than 10 members appointed
by the Secretary from nominations submitted by
representatives of producers of that kind of to-
bacco in the United States; and
‘‘(B) 1 officer or employee of the Depart-
ment appointed by the Secretary.
‘‘(2) ALLOCATION
OF
MEMBERSHIP.—In ap-
pointing members to a Production Board established
for a kind of tobacco, the number of members ap-
pointed by the Secretary to represent each State shall,
to the maximum extent practicable, bear the same
ratio to the total number of members of the Produc-
tion Board as—
†
1159
HR 4520 EAS
‘‘(A) the total volume of domestic sales of
the kind of tobacco produced in the State during
the most recent period for which data is avail-
able; bears to
‘‘(B) the total volume of domestic sales of
the kind of tobacco produced in all States during
the most recent period for which data is avail-
able.
‘‘(3) CHAIRPERSON.—The Secretary shall ap-
point the chairperson of a Production Board, with a
different member serving as chairperson of the Pro-
duction Board each term.
‘‘(4) TERMS.—Each member of a Production
Board shall serve for 2-year terms, except that the
terms of the members first appointed to the Produc-
tion Board shall be staggered so as to establish a ro-
tating membership of the Production Board, as deter-
mined by the Secretary.
‘‘(c) DUTIES.—A Production Board established for a
kind of tobacco shall—
‘‘(1) not later than a date determined by the Sec-
retary, make recommendations to the Secretary on the
base year, within the range of base years rec-
ommended by the Tobacco Quality Board under sec-
tion 380G(c)(7), for the maximum crop acreage base
†
1160
HR 4520 EAS
under section 380I(c)(3)(B) for each crop of each kind
of tobacco; and
‘‘(2) carry out such other related activities as are
assigned to the Production Board by the Secretary.
‘‘(d) ADMINISTRATION.—The Secretary shall provide
each Production Board established for a kind of tobacco
with (as determined by the Secretary)—
‘‘(1) a staff that is knowledgeable about produc-
tion and marketing of that kind of tobacco; and
‘‘(2) other resources and information necessary
for the Production Board to perform the duties of the
Production Board under this subtitle, including infor-
mation concerning acreage devoted to the production
of each kind of tobacco.
‘‘(e) APPLICABILITY
OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to a Production Board.
‘‘SEC. 
380I. 
TOBACCO 
PRODUCTION 
LIMITATION 
PRO-
GRAMS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) CROP
ACREAGE
BASE.—The term ‘crop
acreage base’ means the crop acreage base for a kind
of tobacco for a crop for an active producer of tobacco,
as determined by the Secretary.
†
1161
HR 4520 EAS
‘‘(2) CROP
POUNDAGE
BASE.—The term ‘crop
poundage base’ means the crop poundage base for a
kind of tobacco for a crop for an active producer of
tobacco, as determined by the Secretary.
‘‘(3) PERMITTED
ACREAGE.—The term ‘per-
mitted acreage’ means the number of acres that may
be devoted to the production of a kind of tobacco by
an active producer of tobacco, consistent with the an-
nual acreage limitation program, as determined by
the Secretary.
‘‘(4) PERMITTED
POUNDAGE.—The term ‘per-
mitted poundage’ means the number of pounds of a
kind of tobacco for a crop may be produced by an ac-
tive tobacco producer, consistent with the annual
poundage limitation program, as determined by the
Secretary.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall establish
for each crop of each kind of tobacco—
‘‘(A) an acreage limitation program in ac-
cordance with subsection (c); or
‘‘(B) a poundage limitation in accordance
with subsection (d).
‘‘(2) CONSULTATION.—The Secretary shall carry
out the acreage limitation program and the poundage
†
1162
HR 4520 EAS
limitation program for a kind of tobacco in consulta-
tion with the Tobacco Advisory Board and the appli-
cable Production Board established for that kind of
tobacco.
‘‘(3) SUPPLY.—In carrying out an acreage limi-
tation program or a poundage limitation program for
a crop of a kind of tobacco, the Secretary shall deter-
mine whether the total supply of that kind of tobacco,
in the absence of the respective production limitation
program, will be excessive, taking into account the
need for an adequate carryover to maintain reason-
able and stable supplies and prices.
‘‘(4) ANNOUNCEMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Secretary shall announce
an acreage limitation program or poundage lim-
itation program for each kind of tobacco not
later than December 15 of the calendar year pre-
ceding the year in which the crop is harvested.
‘‘(B) SPECIAL RULE FOR 2004 CROP.—In the
case of the 2004 crop for a kind of tobacco, the
Secretary shall announce an acreage limitation
program or poundage limitation for each kind of
tobacco as soon as practicable after the date of
†
1163
HR 4520 EAS
the enactment of the Tobacco Market Transition
Act of 2004.
‘‘(c) ACREAGE LIMITATION PROGRAM.—
‘‘(1) IN GENERAL.—Under an acreage limitation
program for a crop of a kind of tobacco announced
under subsection (b), the limitation shall be achieved
by applying a uniform percentage reduction to the
crop acreage base for the kind of tobacco for the crop
for active producers of that kind of tobacco in each
traditional tobacco county, as determined by the Sec-
retary.
‘‘(2) CROP ACREAGE BASES.—
‘‘(A) IN GENERAL.—The crop acreage base
for an active producer of tobacco for a crop of
each kind of tobacco shall equal the number of
acres that is equal to—
‘‘(i) in the case of the 2004 crop year,
the average of the acreage planted and con-
sidered planted by the active producer of to-
bacco to the kind of tobacco for harvest in
a traditional tobacco county in each of the
5 crop years preceding the crop year, as de-
termined and adjusted by the Secretary (in
consultation with the Tobacco Quality
†
1164
HR 4520 EAS
Board 
and 
the 
applicable 
Production
Board); and
‘‘(ii) in the case of each subsequent
crop year, the number of acres planted and
considered planted by the active producer of
tobacco to the kind of tobacco for harvest in
a traditional tobacco county in the pre-
ceding crop year, as determined and ad-
justed by the Secretary (in consultation
with the Tobacco Quality Board and the
applicable Production Board).
‘‘(B) MAXIMUM CROP ACREAGE BASES.—
‘‘(i) IN GENERAL.—The total quantity
of acreage devoted to a kind of tobacco by
active producers of tobacco during a crop
year shall not exceed the total quantity of
acreage devoted to the kind of tobacco by ac-
tive producers during a crop year deter-
mined by the Secretary.
‘‘(ii) ADJUSTMENT.—If the active pro-
ducers of a kind of tobacco demonstrate to
the Secretary that the application of clause
(i) to a crop of a kind of tobacco will result
in unbalanced supply and demand condi-
tions, the Secretary may adjust the total
†
1165
HR 4520 EAS
quantity of acreage that may be devoted to
the kind of tobacco by active producers dur-
ing the crop year.
‘‘(C) SALE, LEASE, OR TRANSFER OF CROP
ACREAGE BASES.—An active producer of tobacco
shall not sell, lease, or transfer to another person
a crop acreage base established for the active pro-
ducer of tobacco under this paragraph.
‘‘(D) REALLOCATION
OF
UNUSED
CROP
ACREAGE BASES.—
‘‘(i) COUNTY POOL.—If an active pro-
ducer of tobacco with a crop acreage base
for a kind of tobacco elects not to use all or
part of the crop acreage base to continue to
produce that kind of tobacco, the unused
crop acreage base shall be placed in a pool
established for the traditional tobacco coun-
ty for reallocation by the Secretary to other
producers of that kind of tobacco in the tra-
ditional tobacco county that request the
crop acreage base.
‘‘(ii) STATE POOL.—If any crop acre-
age base for a kind of tobacco remains after
the crop acreage base is made available to
producers of that kind of tobacco in the tra-
†
1166
HR 4520 EAS
ditional tobacco county in a State, the un-
used crop acreage base shall be placed in a
pool established for the State for realloca-
tion by the Secretary to other producers of
that kind of tobacco in a traditional tobacco
county.
‘‘(iii) NEW
PRODUCERS.—In reallo-
cating unused crop acreage bases for a kind
of tobacco in a traditional tobacco county
made available under each of clauses (i)
and (ii), the Secretary shall make available
to any new producers of that kind of to-
bacco in the traditional tobacco county up
to 10 percent of the crop acreage bases
available for reallocation for the kind of to-
bacco in the traditional tobacco county.
‘‘(d) POUNDAGE LIMITATION PROGRAM.—
‘‘(1) IN GENERAL.—Under a poundage limita-
tion program for a crop of a kind of tobacco, the Sec-
retary shall achieve the limitation by applying a uni-
form percentage adjustment to the crop poundage base
of an active producer of tobacco for the kind of to-
bacco in each traditional tobacco county, as deter-
mined by the Secretary.
†
1167
HR 4520 EAS
‘‘(2) 
DETERMINATION
OF
CROP
POUNDAGE
BASES.—
‘‘(A) 2004 CROP YEAR.—The crop poundage
base for an active tobacco producer for the 2004
crop of a kind of tobacco shall equal the average
of the number of pounds of that kind of tobacco
harvested by the active tobacco producer in a
traditional tobacco county and marketed in each
of the 5 crop years preceding the crop year, as
determined by the Secretary.
‘‘(B) SUBSEQUENT
CROP
YEARS.—In the
case of the 2005 and subsequent crops of each
kind of tobacco, the crop poundage base for an
active tobacco producer of a kind of tobacco shall
equal the number of pounds of that kind of to-
bacco harvested by the active tobacco producer in
a traditional tobacco county and marketed in the
preceding crop year, as determined and adjusted
by the Secretary.
‘‘(3) MAXIMUM CROP POUNDAGE BASES.—
‘‘(A) IN
GENERAL.—The total number of
pounds devoted to a kind of tobacco by active to-
bacco producers during a crop year shall not ex-
ceed the total number of pounds devoted to the
†
1168
HR 4520 EAS
kind of tobacco by active tobacco producers dur-
ing a crop year determined by the Secretary.
‘‘(B) ADJUSTMENT.—If the active tobacco
producers of a kind of tobacco demonstrate to the
Secretary that the application of paragraph (1)
to a crop of a kind of tobacco will result in un-
balanced supply and demand conditions, the
Secretary may adjust the total number of pounds
that may be devoted to the kind of tobacco by ac-
tive tobacco producers during the crop year.
‘‘(4) SALE, LEASE, OR
TRANSFER
OF
CROP
POUNDAGE BASES.—
‘‘(A) PROHIBITION.—An active producer of
tobacco shall not directly or indirectly sell, lease,
or transfer to another person or other legal entity
a crop poundage base established for an active
tobacco producer under this subsection.
‘‘(B) EXCEPTION.—If the crop poundage
base of an active producer of tobacco for a type
of tobacco covers tobacco that was produced by
the producer in more than 1 traditional tobacco
county, the producer may elect to consolidate the
base in a single traditional tobacco county in
which the producer bore or shared in the risk of
†
1169
HR 4520 EAS
producing a crop of that kind of tobacco for the
2002 crop year.
‘‘(5) REALLOCATION OF UNUSED CROP POUND-
AGE BASES.—
‘‘(A) COUNTY POOL.—If an active producer
of tobacco with a crop poundage base for a kind
of tobacco elects not to use all or part of the crop
poundage base, the unused crop poundage base
shall be placed in a pool established for the tra-
ditional tobacco county where the unused crop
poundage base was originally located for re-
allocation by the Secretary to other active pro-
ducers of tobacco of that kind of tobacco in the
traditional tobacco county, in a manner deter-
mined by the Secretary.
‘‘(B) STATE POOL.—If any crop poundage
base for a kind of tobacco remains after the crop
poundage base is made available to producers of
that kind of tobacco in the traditional tobacco
county in a State under subparagraph (A), the
unused crop poundage base shall be placed in a
pool established for the State for reallocation by
the Secretary to other producers of that kind of
tobacco in traditional tobacco counties, in a
manner determined by the Secretary.
†
1170
HR 4520 EAS
‘‘(C) TRADITIONAL GROWING AREA POOL.—
If any crop poundage base for a kind of tobacco
remains after the crop poundage base is made
available to producers of that kind of tobacco
under subparagraphs (A) and (B), the unused
crop poundage base shall be placed in a pool es-
tablished for reallocation by the Secretary to
other producers of that kind of tobacco in a tra-
ditional tobacco county for that kind of tobacco.
‘‘(D) NEW
PRODUCERS.—In reallocating
unused crop poundage bases for a kind of tobacco
in a traditional tobacco county made available
under any of subparagraphs (A) through (C), the
Secretary shall make available to any new pro-
ducers of that kind of tobacco in the traditional
tobacco county up to 10 percent of the crop
poundage bases available for reallocation for the
kind of tobacco in the traditional tobacco county.
‘‘(e) COMPLIANCE.—
‘‘(1) LOANS, PURCHASES, OR
PAYMENTS.—An
active producer of tobacco that knowingly produces a
kind of tobacco in excess of the permitted acreage or
permitted poundage, as applicable, for the kind of to-
bacco, or violates any lease or transfer requirements
of this section, shall be ineligible for any loans, pur-
†
1171
HR 4520 EAS
chases, or payments for that crop of the kind of to-
bacco.
‘‘(2) NO CARRYOVER.—An active producer of to-
bacco may not carry over permitted poundage or per-
mitted acreage, as applicable, for a crop of a kind of
tobacco, that is not produced by the producer, for pro-
duction in a subsequent crop year.
‘‘(3) PENALTIES.—
‘‘(A) CRIMINAL PENALTY.—An active pro-
ducer of tobacco that violates paragraph (1) shall
be fined not more than $100,000 or imprisoned
not more than 2 years, or both.
‘‘(B) CIVIL PENALTY.—An active producer
of tobacco that violates paragraph (2) shall be
subject to a civil penalty in an amount not to
exceed 2 percent of the value of the kind of to-
bacco produced by the producer during the appli-
cable crop year, as determined by the Secretary.
‘‘(C) ADDITIONAL PENALTIES.—A civil pen-
alty under subparagraph (B) for a violation
shall be in addition to any criminal penalty
under subparagraph (A) for the violation.
‘‘(D) JURISDICTION TO PREVENT AND RE-
STRAIN VIOLATIONS.—A United States district
court shall have jurisdiction to prevent and re-