†
1194
HR 4520 EAS
‘‘SEC. 380U. COMMODITY CREDIT CORPORATION.
The Secretary shall use the funds, facilities, and au-
thorities of the Commodity Credit Corporation to carry out
this subtitle, to remain available until expended.
‘‘SEC. 380V. TRANSITION PROVISIONS.
‘‘(a) TOBACCO STOCKS.—
‘‘(1) IN GENERAL.—To provide for the orderly
disposition of quota tobacco held by an association
that has entered into a loan agreement with the Com-
modity Credit Corporation under section 106A or
106B of the Agricultural Act of 1949 (7 U.S.C. 1445–
1, 1445–2) (referred to in this section as an ‘associa-
tion’), loan pool stocks for each kind of tobacco held
by the association shall be disposed of in accordance
with this subsection.
‘‘(2) ASSOCIATIONS.—For each kind of tobacco
held by an association, the proportion of loan pool
stocks for each kind of tobacco held by the association
that shall be transferred to the association shall be
equal to—
‘‘(A) the amount of funds held by the asso-
ciation in the No Net Cost Tobacco Fund and the
No Net Cost Tobacco Account established under
sections 106A and 106B of the Agricultural Act
of 1949 (7 U.S.C. 1445–1, 1445–2), respectively,
for the kind of tobacco; divided by
†
1195
HR 4520 EAS
‘‘(B) the average list price per pound for the
kind of tobacco, as determined by the Secretary.
‘‘(3) COMMODITY
CREDIT
CORPORATION.—Any
loan pool stocks of a kind of tobacco of an association
that are not disposed of in accordance with para-
graph (2) shall be—
‘‘(A) transferred by the association to the
Commodity Credit Corporation; and
‘‘(B) disposed of in a manner determined
by the Secretary.
‘‘(b) NO NET COST FUNDS.—
‘‘(1) IN GENERAL.—Any funds in the No Net
Cost Tobacco Fund or the No Net Cost Tobacco Ac-
count of an association established under sections
106A and 106B of the Agricultural Act of 1949 (7
U.S.C. 1445–1, 1445–2), respectively, that remain
after the application of subsection (a) and sections
106A and 106B of the Agricultural Act of 1949 (7
U.S.C. 1445, 1445–1) (as in effect before the effective
date of this subtitle) shall be transferred to the asso-
ciation for distribution to traditional producers of to-
bacco in accordance with a plan approved by the Sec-
retary.
‘‘(2) 
ASSOCIATIONS
WITH
NO
LOAN
POOL
STOCKS.—In the case of an association that does not
†
1196
HR 4520 EAS
hold any loan pool stocks that are covered by sub-
section (a)(2), any funds in the No Net Cost Tobacco
Fund or the No Net Cost Tobacco Account of the asso-
ciation established under sections 106A and 106B of
the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–
2), respectively, shall be transferred to the association
for distribution to traditional producers of tobacco in
accordance with a plan approved by the Secretary.
‘‘(c) REIMBURSEMENT TO COMMODITY CREDIT COR-
PORATION.—There shall be transferred from the Tobacco
Trust Fund to each No Net Cost Tobacco Fund or the No
Net Cost Tobacco Account of an association established
under sections 106A and 106B of the Agricultural Act of
1949 (7 U.S.C. 1445–1, 1445–2), respectively, such amounts
as the Secretary determines will be adequate to reimburse
the Commodity Credit Corporation for any net losses that
the Corporation may sustain under its loan agreements
with the association.’’.
SEC. 1152. TOBACCO INSURANCE RESEARCH AND DEVELOP-
MENT.
(a) IN GENERAL.—Section 522(b)(1) of the Federal
Crop Insurance Act (7 U.S.C. 1522(b)(1)) is amended—
(1) by redesignating subparagraphs (A) and (B)
as clauses (i) and (ii), respectively, and indenting ap-
propriately;
†
1197
HR 4520 EAS
(2) by striking ‘‘The Corporation’’ and inserting
the following—
‘‘(A) IN GENERAL.—The’’; and
(3) by adding at the end the following:
‘‘(B) TOBACCO
RESEARCH
AND
DEVELOP-
MENT.—Subject to the availability of funds
under subsection (e)(5), the Corporation shall
provide a payment to reimburse an applicant for
research and development costs directly related to
a policy that is—
‘‘(i) submitted to the Board and ap-
proved by the Board under section 508(h)
for reinsurance;
‘‘(ii) if applicable, offered for sale to
producers; and
‘‘(iii) addresses risk in the production
of tobacco.’’.
(b) ASSESSMENTS.—Section 522(e) of the Federal
Crop Insurance Act (7 U.S.C. 1522(e)) is amended by add-
ing at the end the following:
‘‘(5) TOBACCO ASSESSMENT.—
‘‘(A) IN GENERAL.—Effective for each mar-
keting year for a kind of tobacco for which a
commodity-specific plan of insurance is offered
under this Act, subject to subparagraphs (B)
†
1198
HR 4520 EAS
through (D), each producer and purchaser of
that kind of tobacco shall remit to the Insurance
Fund established under section 516(c) a non-
refundable marketing assessment in an amount
determined by the Secretary pursuant to sub-
paragraphs (B) and (C).
‘‘(B) TOTAL AMOUNT.—The total amount of
producer and purchaser assessments for a kind of
tobacco collected under this paragraph shall be
equal to the amount that is necessary to carry
out subsection (b)(1)(B).
‘‘(C) ADMINISTRATION.—Producer and pur-
chaser assessments for a kind of tobacco under
this paragraph—
‘‘(ii) shall be determined in such a
manner that producers and purchasers
share equally, to the maximum extent prac-
ticable, in paying assessments required
under this paragraph; and
‘‘(ii) shall not exceed 5 cents per
pound.
‘‘(D) TERMINATION.—Effective beginning
with the 2010 crop of each kind of tobacco, the
Secretary may terminate the collection of assess-
ments for that kind of tobacco if the Secretary
†
1199
HR 4520 EAS
determines that further research and development
under subsection (b)(1)(B) would not be produc-
tive.’’.
(c) INSURANCE FUND.—Section 516(c)(1) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended
by inserting ‘‘assessments for tobacco research made avail-
able under section 522(e)(5),’’ after ‘‘under subsection
(a)(2),’’.
SEC. 1153. CONFORMING AMENDMENTS.
Section 320B(c)(1) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1314h(c)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by striking ‘‘by’’ at the end and inserting
‘‘or’’; and
(3) by adding at the end the following:
‘‘(B) in the case of the 2003 marketing year, the
price support rate for the kind of tobacco involved in
effect under section 106 of the Agricultural Act of
1949 (7 U.S.C. 1445) at the time of the violation;
by’’.
CHAPTER 3—IMPLEMENTATION
SEC. 1161. REGULATIONS.
(a) IN GENERAL.—The Secretary of Agriculture may
promulgate such regulations as are necessary to implement
this subtitle and the amendments made by this subtitle.