‘‘(A) IN GENERAL.—The Center shall have
a Board of Directors consisting of 7 members,
of which—
‘‘(i) 6 members shall be appointed by
the President, by and with the advice and
consent of the Senate; and
‘‘(ii) 1 member shall be appointed by
the other members of the Board, who shall
serve as Executive Director of the Center.
‘‘(B) POLITICAL PARTY.—Of the members
appointed by the President under subparagraph
(A)(i), not more than 3 of the members may be
members of the same political party.
‘‘(C) QUALIFICATIONS.—Each member of
the Board appointed by the President under
subparagraph (A)(i) shall—
‘‘(i) be a citizen of the United States;
‘‘(ii) have knowledge and experience
regarding the matters for which the Center
is responsible; and
‘‘(iii) be eminent in issues related to
the duties of the Center under subsection
(e).
‘‘(2) DUTIES OF INITIAL BOARD.—The mem-
bers of the initial Board of Directors shall—
‘‘(A) serve as incorporators; and
‘‘(B) take whatever actions are necessary
to establish the Center under the laws (includ-
ing regulations) of the State where the Center
is incorporated.
‘‘(3) TERMS.—
‘‘(A) IN GENERAL.—The term of office of
each member of the Board appointed by the
President shall be 4 years, except that of the
members initially appointed, 3 members shall
serve for a 2-year term.
‘‘(B) EXPIRATION OF TERM.—Any member
whose term has expired may serve until the suc-
cessor of the member has taken office or until
the end of the calendar year in which the term
of the member has expired, whichever is earlier.
‘‘(C) VACANCIES.—
‘‘(i) IN GENERAL.—Any member ap-
pointed to fill a vacancy occurring prior to
the expiration of the term for which the
predecessor of the member was appointed
shall be appointed for the remainder of the
term.
‘‘(ii) POWERS.—Any vacancy on the
Board shall not affect the powers of the
Board and shall be filled in a manner con-
sistent with this section.
‘‘(D) CONSECUTIVE TERMS.—No member
of the Board shall be eligible to serve in excess
of 2 consecutive full terms.
‘‘(4) MEETINGS.—
‘‘(A) IN
GENERAL.—A member of the
Board shall attend not less than 50 percent of
all meetings of the Board in any calendar year.
‘‘(B) FAILURE TO ATTEND MEETINGS.—If
a member fails to meet the requirement of sub-
paragraph (A)—
‘‘(i) the member shall forfeit member-
ship on the Board; and
‘‘(ii) not later than 30 days after the
vacancy is determined by the Chairperson
of the Board, the President shall appoint a
new member to fill the vacancy.
‘‘(C) PUBLIC MEETINGS.—All meetings of
the Board, including any committee of the
Board, shall be open to the public.
‘‘(5) ADMINISTRATION.—
‘‘(A) CHAIRPERSON
AND
VICE
CHAIR-
PERSON.—Members of the Board shall annually
elect—
‘‘(i) 1 member of the Board to serve
as Chairperson; and
‘‘(ii) 1 or more members of the Board
to serve as Vice Chairpersons.
‘‘(B) NONFEDERAL EMPLOYEES.—A mem-
ber of the Board shall not, by reason of mem-
bership on the Board, be an officer or employee
of the United States.
‘‘(C) COMPENSATION.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), a member of the Board shall, while at-
tending a meeting of the Board or while
engaged in duties related to the meeting or
other activities of the Board pursuant to
this section, be entitled to receive com-
pensation at the rate of $150 per day, in-
cluding travel time.
‘‘(ii) LIMITATION.—No member of the
Board shall receive compensation of more
than $10,000 for any fiscal year.
‘‘(D) EXPENSES.—While away from the
home or regular place of business, a member of
the Board shall be allowed travel and actual,
reasonable, and necessary expenses.
‘‘(c) OFFICERS AND EMPLOYEES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Center shall have a President, and such other of-
ficers and employees as may be appointed by the
Board, for terms and at rates of compensation fixed
by the Board.
‘‘(2) COMPENSATION LIMITATION.—No officer
or employee of the Corporation may be compensated
by the Corporation at an annual rate of pay that ex-
ceeds the rate of basic pay in effect for level I of the
Executive Schedule under section 5312 of title 5,
United States Code.
‘‘(3) CITIZENSHIP.—To be eligible to be an offi-
cer or employee of the Center, an individual shall be
a citizen of the United States.
‘‘(4) OTHER COMPENSATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no officer or employee of the
Center, other than the Chairperson or Vice
Chairperson, may receive any salary or other
compensation from any sources other than the
Center for services rendered during the period
of employment by the Center.
‘‘(B) EXCEPTIONS.—With the advance ap-
proval of the Board and subject to ethical
guidelines established by the Board, an officer
‘‘(C) hire or accept the voluntary services
of consultants, experts, advisory boards, and
panels to aid the Center in carrying out this
section;
‘‘(D) accept bequests, donations, and other
forms of assistance; and
‘‘(E) take such other actions as are nec-
essary to carry out this section.
‘‘(4) NO
FEDERAL
FUNDS.—Subject to sub-
section (h), nothing in this subsection commits the
Federal Government to provide any funds for the
payment of any obligation of the Center.
‘‘(5) CUSTOMARY POWERS.—To carry out this
subsection, the Center shall have the customary pow-
ers conferred on a nonprofit corporation by applica-
ble laws (including regulations) of the State where
the Center is incorporated, except that the Center
shall not own or operate any tobacco-related inter-
est.
‘‘(f) ANNUAL REPORT.—
‘‘(1) IN GENERAL.—Not later than May 15 of
each year, the Center shall submit an annual report
for the preceding fiscal year ending September 30 to
the President for transmittal to Congress.
‘‘(2) CONTENTS.—The report shall include—
‘‘(A) a comprehensive and detailed report
of the operations, activities, financial condition,
and accomplishments of the Center under this
section and such recommendations as the Cen-
ter considers appropriate; and
‘‘(B) a listing of each organization that re-
ceives a grant from the Center and the purpose
and amount of each grant.
‘‘(3) CONGRESSIONAL TESTIMONY.—An officer
or employee of the Center shall be available to tes-
tify before an appropriate committee of Congress
with respect to—
‘‘(A) the report required under paragraph
(1);
‘‘(B) the report of any audit made by the
Comptroller General of the United States pur-
suant to this section; or
‘‘(C) any other matter that the committee
may determine.
‘‘(g) FINANCIAL MANAGEMENT AND RECORDS.—
‘‘(1) INDEPENDENT ANNUAL AUDITS.—
‘‘(A) IN GENERAL.—The accounts of the
Center shall be audited annually in accordance
with generally accepted auditing standards by 1
or more independent certified public account-
ants or independent licensed public accountants
certified or licensed by a regulatory authority of
a State or political subdivision of a State.
‘‘(B) LOCATION.—The audit shall be con-
ducted at the 1 or more places where the ac-
counts of the Center are normally kept.
‘‘(C) INFORMATION AND FACILITIES.—The
1 or more persons conducting the audit shall—
‘‘(i) have access to all books, accounts,
records, reports, files, and other papers,
things, or property belonging to or in use
by the Center and necessary to facilitate
the audit, which shall remain in the pos-
session and custody of the Center; and
‘‘(ii) be provided full facilities for
verifying transactions with the balances or
securities 
held 
by 
depositories, 
fiscal
agents, and custodians.
‘‘(D) ANNUAL
REPORT.—The report of
each independent audit conducted under this
paragraph shall be included in the annual re-
port required by subsection (f)(1).
‘‘(E) 
CONTENTS.—The 
audit 
report
shall—
‘‘(i) provide a description of the scope
of the audit;
‘‘(ii) include such statements as are
necessary to analyze the assets and liabil-
ities (including any surplus or deficit) of
the Center, with an analysis of the changes
in the assets, liabilities, and expenses dur-
ing the applicable year; and
‘‘(iii) provide a statement of the
sources and application of funds, together
with the opinion of the independent audi-
tor of the statement.
‘‘(2) AUDITS
BY
GENERAL
ACCOUNTING
OF-
FICE.—
‘‘(A) IN GENERAL.—The financial trans-
actions of the Center for any fiscal year during
which Federal funds are available to finance
any portion of the operations of the Center may
be audited by the General Accounting Office in
accordance with the principles and procedures
applicable to commercial corporate transactions
and under such rules and regulations as may be
prescribed by the Comptroller General of the
United States.
‘‘(B) LOCATION.—The audit shall be con-
ducted at the 1 or more places where accounts
of the Center are normally kept.
‘‘(C) INFORMATION AND FACILITIES.—The
representatives of the General Accounting Of-
fice conducting the audit shall—
‘‘(i) have access to all books, accounts,
records, reports, files, and other papers,
things, or property belonging to or in use
by the Center and necessary to facilitate
the audit, which shall remain in the pos-
session and custody of the Center; and
‘‘(ii) be provided full facilities for
verifying transactions with the balances or
securities 
held 
by 
depositories, 
fiscal
agents, and custodians.
‘‘(D) REPORT.—
‘‘(i) IN GENERAL.—A report of each
audit conducted under this paragraph shall
be made by the Comptroller General to
Congress.
‘‘(ii) CONTENTS.—The report shall
contain—
‘‘(I) such comments and informa-
tion as the Comptroller General deter-
mines necessary to inform Congress of
the financial operations and condition
of the Center;
‘‘(II) such recommendations with
respect to the operations and condi-
tion as the Comptroller General may
consider advisable; and
‘‘(III) a description of any pro-
gram, expenditure, or other financial
transaction or undertaking observed
in the course of the audit, that, in the
opinion of the Comptroller General,
has been carried on or made without
authority of law.
‘‘(iii) COPIES.—At the time the report
is submitted to Congress, a copy of the re-
port shall be furnished to the President,
the Secretary, and the Center.
‘‘(3) ACCOUNTING.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this section, in
consultation with the Comptroller General and
other appropriate persons, the Center shall de-
velop accounting principles that shall be used
uniformly by all individuals and entities receiv-
ing funds under this section, taking into ac-
count organizational differences among various
categories of the individuals and entities.
‘‘(B) SCOPE.—The principles shall cover
all funds received and expended by the individ-
uals or entities under this section.
‘‘(C) 
REQUIREMENTS.—Each 
individual
and entity receiving funds under this section
shall be required—
‘‘(i) to keep its books, records, and ac-
counts in such form as may be required by
the Center;
‘‘(ii)(I) to undergo a biennial audit by
independent certified public accountants or
independent licensed public accountants
certified or licensed by a regulatory au-
thority of a State, which audit shall be in
accordance with auditing standards devel-
oped by the Center; or
‘‘(II) to submit a financial statement
in lieu of the audit required by subclause
(I) if the Center determines that the cost
of the audit imposed on the individual or
entity is excessive in light of the financial
condition of the individual or entity; and
‘‘(iii) to furnish biennially to the
Center—
‘‘(I) a copy of the audit report
required under clause (ii); and
‘‘(II) such other information re-
garding finances (including an annual
financial report) as the Center may
require.
‘‘(D) MAINTENANCE OF RECORDS BY RE-
CIPIENTS.—Any recipient of assistance by grant
under this section shall keep—
‘‘(i) such records as may be reason-
ably necessary to disclose fully—
‘‘(I) the amount and the disposi-
tion by the recipient of the assistance;
‘‘(II) the total cost of the project
or undertaking in connection with
which the assistance is given or used;
and
‘‘(III) the amount and nature of
that portion of the cost of the project
or undertaking supplied by other
sources; and
‘‘(ii) such other records as will facili-
tate an effective audit.
‘‘(E) ACCESS TO RECIPIENT RECORDS.—
‘‘(i) CENTER.—The Center (including
an authorized representative) shall have
access to any books, documents, papers,
and records of any recipient of assistance
for the purpose of auditing and examining
all funds received or expended by the re-
cipient under this section.
‘‘(ii) COMPTROLLER
GENERAL.—The
Comptroller General of the United States
(including an authorized representative)
shall have access to such books, docu-
ments, papers, and records for the purpose
of auditing and examining all funds re-
ceived or expended under this section dur-
ing any fiscal year for which Federal funds
are available to the Center.
‘‘(4) PUBLIC ACCESS.—
‘‘(A) IN
GENERAL.—The Center shall
maintain the information described in subpara-
graphs (C), (D), and (E) of paragraph (3) at
the offices of the Center for public inspection
and copying for at least 3 years, according to
such reasonable guidelines as the Center may
issue.
‘‘(B) UPDATES.—The Center shall regu-
larly update the information.
‘‘(C) 
APPLICABILITY.—This 
paragraph
shall apply to all assistance provided under this
section after the date of enactment of this sec-
tion.
‘‘(h) FUNDING.—
‘‘(1) IN
GENERAL.—Of the assessments col-
lected under section 380k(a), the Commodity Credit
Corporation shall transfer to the Center to carry out
this section not less than $10,000,000 for fiscal year
2003 and each subsequent fiscal year.
‘‘(2) 
AVAILABILITY.—Funds 
appropriated
under this subsection shall remain available until ex-
pended.
‘‘(3) DISTRIBUTION.—Funds made available
under this subsection shall be disbursed by the Sec-
retary on a fiscal year basis.
‘‘(4) ANNUAL BUDGET.—The Center shall es-
tablish an annual budget for use in allocating
amounts made available to the Center under this
subsection.
‘‘SEC. 380n. TOBACCO ADVISORY BOARD.
‘‘(a) ESTABLISHMENT.—There is established, within
the Department of Agriculture, a Tobacco Advisory
Board.
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The Advisory Board shall
consist of 13 members appointed by the Secretary,
including—
‘‘(A) 6 active growers of covered tobacco,
including—
‘‘(i) 2 active growers of Flue-cured to-
bacco;
‘‘(ii) 2 active growers of Burley-to-
bacco;
‘‘(iii) 1 active growers of Fire-cured
tobacco; and
‘‘(iv) 1 other active grower of covered
tobacco;
‘‘(B) 6 representatives of the tobacco in-
dustry, including—
‘‘(i) 4 domestic manufacturers of ciga-
rettes produced from covered tobacco;
‘‘(ii) 1 export dealer of products pro-
duced from covered tobacco; and
‘‘(iii) 1 domestic manufacturer of
smokeless tobacco produced from covered
tobacco; and
‘‘(C) the Secretary or the designee of the
Secretary, who shall serve as chairperson.
‘‘(2) TERM.—A member of the Advisory shall
serve for a term determined by the Secretary at the
time of appointment.
‘‘(3) COMPENSATION.—A member of the Advi-
sory Board shall receive no compensation for the
service of the member on the Advisory Board, other
than reimbursement for per diem and travel-related
expenses.
‘‘(c) DUTIES.—The Advisory Board shall advise—
‘‘(1) the Secretary on implementation of this
subtitle; and
‘‘(2) the heads of other Federal agencies on the
economic and technical feasibility of actions that the
agencies are considering regarding tobacco produc-
tion and product control.
‘‘(d) AGENCIES.—The Secretary, the Administrator
of the Environmental Protection Agency, the Commis-
sioner of Food and Drugs, the United States Trade Rep-
resentative, and the heads of other agencies with respon-
sibilities related to tobacco production and product control
shall ensure that mechanisms are in place for the Advisory
Board to provide its advice and assistance regarding ac-
tions described in subsection (c).
‘‘(e) FEDERAL ADVISORY COMMITTEE ACT.—The
Federal Advisory Committee Act (5 U.S.C. App) shall not
apply to the Advisory Board.’’.
TITLE 
IV—TERMINATION 
OF
MARKETING 
QUOTAS 
FOR
CERTAIN TOBACCO
SEC. 401. DEFINITIONS.
(a) IN GENERAL.—Section 301 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1301) is amended—
(1) in paragraph (14), by striking subpara-
graphs (C) and (D);
(2) in paragraph (15), by striking ‘‘Flue-cured
tobacco,’’ and all that follows through ‘‘Burley to-
bacco, comprising type 31;’’; and
(3) by striking ‘‘demand: Provided further,’’ and
all that follows through the period at the end and
inserting a period.
(b) COVERED TOBACCO.—Part I of subtitle B of title
III of the Agricultural Adjustment Act of 1938 is amended
by inserting before section 311 (7 U.S.C. 1311) the fol-
lowing:
‘‘SEC. 310. DEFINITION OF COVERED TOBACCO.
‘‘In this part, the term ‘covered tobacco’ means—
‘‘(1) Maryland tobacco;
‘‘(2) cigar-filler and cigar-binder tobacco; and
‘‘(3) cigar-filler tobacco.’’.
SEC. 402. NATIONAL MARKETING QUOTA.
Section 312 of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1312) is amended—
(1) in subsection (a), by striking ‘‘December 1’’
and all that follows through ‘‘other kinds of to-
bacco’’ and inserting ‘‘March 1 of any marketing
year with respect to covered tobacco’’; and
(2) in the first sentence of subsection (b), by
striking ‘‘the first day of December’’ and all that fol-
lows through ‘‘other kinds of tobacco’’ and inserting
‘‘March 1 with respect to covered tobacco’’.
SEC. 403. APPORTIONMENT OF NATIONAL MARKETING
QUOTA.
Section 313 of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1313) is amended—
(1) in subsection (a)—
(A) by striking ‘‘quota: Provided,’’ and all
that follows through ‘‘acre: And provided fur-
ther, That’’ and inserting ‘‘quota, except that’’;
and
(B) by striking ‘‘practices: And provided
further,’’ and all that follows and inserting
‘‘practices.’’;
(2) in the proviso of subsection (b), by striking
‘‘(1)’’ and all that follows through ‘‘or (2)’’ and in-
serting ‘‘(1) 2,400 pounds, in the case of covered to-
bacco, or (2)’’;
(3) by striking subsection (e); and
(4) in paragraph (2) of the third sentence of
subsection (g), by striking ‘‘three thousand’’ and all
that follows through ‘‘tobacco: Provided, That’’ and
inserting ‘‘2,400 pounds, in the case of covered to-
bacco, except that’’.
SEC. 404. BURLEY TOBACCO ACREAGE ALLOTMENTS.
The Act entitled ‘‘An Act relating to burley tobacco
farm acreage allotments under the Agricultural Adjust-
ment Act of 1938, as amended’’, approved July 12, 1952
(7 U.S.C. 1315), is repealed.
SEC. 405. LEASE AND TRANSFER OF ACREAGE ALLOT-
MENTS.
Section 316 of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1314b) is amended—
(1) by striking the section heading and all that
follows through ‘‘(A)(i) The’’ and inserting the fol-
lowing:
‘‘SEC. 316. LEASE AND TRANSFER OF ACREAGE ALLOT-
MENTS.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, the’’;
(2) in subsection (a)—
(A) by striking ‘‘Burley, Flue-cured, dark
air-cured, Fire-cured, Virginia sun-cured and’’;
and
(B) by striking ‘‘(ii) The Secretary’’ and
all that follows;
(3) in subsection (e)—
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as
paragraph (2); and
(4) by striking subsection (g) through the end
of the section.
SEC. 406. MANDATORY SALE OF FLUE-CURED TOBACCO
ACREAGE 
ALLOTMENTS 
AND 
MARKETING
QUOTAS.
Section 316A of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1314b–1) is repealed.
SEC. 407. MANDATORY SALE OF BURLEY TOBACCO ACRE-
AGE ALLOTMENTS AND MARKETING QUOTAS.
Section 316B of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1314b–2) is repealed.
SEC. 408. ACREAGE—POUNDAGE QUOTAS.
Section 317 of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1314c) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘(1)(A)’’ and inserting
‘‘(1)’’; and
(ii) by striking subparagraphs (B) and
(C);
(B) in paragraph (2), by striking the last
sentence;
(C) in paragraph (4), by striking the sec-
ond and third sentences; and
(D) by striking paragraph (5) and all that
follows through the end of the first sentence of
paragraph (6)(B) and inserting the following:
‘‘(5) COMMUNITY AVERAGE YIELD.—The term
‘community average yield’ means, for covered to-
bacco, the average yield per acre in the community
designated by the Secretary as a local administrative
area under section 8(b) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)), which
is determined by averaging the yields per acre for
the 3 highest years of the 1960 through 1964 crop
years, except that if the yield for any of the 3 high-
est years is less than 80 percent of the average for