401 
(n) 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’’. 
(o) TOBACCO FIELD MEASUREMENT.—Section 1112 of 
the Omnibus Budget Reconciliation Act of 1987 (Public 
Law 100–203) is amended by striking subsection (c). 
SEC. 712. TERMINATION OF TOBACCO PRICE SUPPORT PRO-
GRAM AND RELATED PROVISIONS. 
(a) 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1445–2) are repealed. 
(b) 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
402 
(4) by redesignating subsections (d) and (e) as 
subsections (c) and (d), respectively. 
(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) 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. 713. LIABILITY. 
The amendments made by this subtitle shall not affect 
the liability of any person under any provision of law so 
amended with respect to any crop of tobacco planted before 
the effective date of this Act. 
Subtitle B—Transitional Payments 
to Tobacco Quota Holders and 
Active Producers of Tobacco 
SEC. 721. DEFINITIONS OF ACTIVE TOBACCO PRODUCER 
AND QUOTA HOLDER. 
In this subtitle: 
(1) ACTIVE TOBACCO PRODUCER.—The term ‘‘ac-
tive tobacco producer’’ means an owner, operator, 
landlord, tenant, or sharecropper who—
403 
(A) shared in the risk of producing tobacco 
on a farm where tobacco was produced or consid-
ered planted pursuant to a tobacco farm mar-
keting quota or farm acreage allotment estab-
lished under part I of subtitle B of title III of 
the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1311 et seq.) for the 2004 marketing year; 
and 
(B) was actively engaged on that farm. 
(2) CONSIDERED PLANTED.—The term ‘‘consid-
ered planted’’ means tobacco that was planted, but 
failed to be produced as a result of a natural disaster, 
as determined by the Secretary. 
(3) TOBACCO QUOTA HOLDER.—The term ‘‘to-
bacco quota holder’’ means a person that was an 
owner of a farm, as of July 1, 2004, for which a basic 
tobacco farm marketing quota or farm acreage allot-
ment for quota tobacco was established for the 2004 
tobacco marketing year. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
SEC. 722. PAYMENTS TO TOBACCO QUOTA HOLDERS. 
(a) PAYMENT REQUIRED.—The Secretary shall make 
payments to each eligible tobacco quota holder for the termi-
nation of tobacco marketing quotas and related price sup-
404 
port under subtitle A, which shall constitute full and fair 
compensation for any losses relating to such termination. 
(b) ELIGIBILITY.—To be eligible to receive a payment 
under this section, a person shall submit to the Secretary 
an application containing such information as the Sec-
retary may require to demonstrate to the satisfaction of the 
Secretary that the person satisfies the definition of tobacco 
quota holder. The application shall be submitted within 
such time, in such form, and in such manner as the Sec-
retary may require. 
(c) INDIVIDUAL BASE QUOTA LEVEL.— 
(1) IN GENERAL.—The Secretary shall establish 
a base quota level applicable to each eligible tobacco 
quota holder identified under subsection (b). 
(2) POUNDAGE QUOTAS.—Subject to adjustment 
under subsection (d), for each kind of tobacco for 
which the marketing quota is expressed in pounds, the 
base quota level for each tobacco quota holder shall be 
equal to the basic tobacco marketing quota under the 
Agriculture Adjustment Act of 1938 for the marketing 
year in effect on the date of the enactment of this Act 
for quota tobacco on the farm owned by the tobacco 
quota holder. 
(3) MARKETING QUOTAS OTHER THAN POUND-
AGE
QUOTAS.—Subject to adjustment under sub-
405 
section (d), for each kind of tobacco for which there 
is marketing quota or allotment on an acreage basis, 
the base quota level for each tobacco quota holder shall 
be the amount equal to the product obtained by multi-
plying— 
(A) the basic tobacco farm marketing quota 
or allotment for the marketing year in effect on 
the date of the enactment of this Act, as estab-
lished by the Secretary for quota tobacco on the 
farm owned by the tobacco quota holder; by 
(B) the average county production yield per 
acre for the county in which the farm is located 
for the kind of tobacco for that marketing year. 
(d) TREATMENT OF CERTAIN CONTRACTS AND AGREE-
MENTS.— 
(1) EFFECT OF PURCHASE CONTRACT.—If there 
was an agreement for the purchase of all or part of 
a farm described in subsection (c) as of the date of 
the enactment of this Act, and the parties to the sale 
are unable to agree to the disposition of eligibility for 
payments under this section, 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 de-
406 
termination of who is the tobacco quota holder with 
respect to particular pounds of the quota. 
(2) EFFECT
OF
AGREEMENT
FOR
PERMANENT 
QUOTA TRANSFER.—If the Secretary determines that 
there was in existence, as of the day before the date 
of the enactment of this Act, an agreement for the per-
manent transfer of quota, but that the transfer was 
not completed by that date, the Secretary shall con-
sider 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. 
(e) TOTAL PAYMENT AMOUNTS BASED ON 2002 MAR-
KETING YEAR.— 
(1) 
CALCULATION
OF
ANNUAL
PAYMENT 
AMOUNT.—During fiscal years 2005 through 2009, the 
Secretary shall make payments to all eligible tobacco 
quota holders identified under subsection (b) in an 
annual amount equal to the product obtained by mul-
tiplying, for each kind of tobacco— 
(A) $1.40 per pound; by 
(B) the total national basic marketing 
quota established under the Agriculture Adjust-
ment Act of 1938 for the 2002 marketing year 
for that kind of tobacco.
407 
(2) MARKETING QUOTAS OTHER THAN POUND-
AGE QUOTAS.—For each kind of tobacco for which 
there is a marketing quota or allotment on an acreage 
basis, the Secretary shall convert the tobacco farm 
marketing quotas or allotments established under the 
Agriculture Adjustment Act of 1938 for the 2002 mar-
keting year for that kind of tobacco as the Secretary 
considers appropriate. 
(f) INDIVIDUAL PAYMENT AMOUNTS.—The annual 
payment amount for each eligible tobacco quota holder with 
respect to a kind of tobacco under this section shall bear 
the same ratio to the amount determined by the Secretary 
under subsection (e) with respect to that kind of tobacco 
as the individual base quota level of that eligible tobacco 
quota holder under subsection (c) with respect to that kind 
of tobacco bears to the total base quota levels of all eligible 
tobacco quota holders with respect to that kind of tobacco. 
(g) DEATH OF TOBACCO QUOTA HOLDER.—If a to-
bacco quota holder who is entitled to payments under this 
section dies and is survived by a spouse or one or more 
dependents, the right to receive the payments shall transfer 
to the surviving spouse or, if there is no surviving spouse, 
to the estate of the tobacco quota holder.
408 
SEC. 723. TRANSITION PAYMENTS FOR ACTIVE PRODUCERS 
OF QUOTA TOBACCO. 
(a) TRANSITION PAYMENTS REQUIRED.—The Sec-
retary shall make transition payments under this section 
to eligible active producers of quota tobacco. 
(b) ELIGIBILITY.—To be eligible to receive a transition 
payment under this section, a person shall submit to the 
Secretary an application containing such information as 
the Secretary may require to demonstrate to the satisfaction 
of the Secretary that the person satisfies the definition of 
active producer of quota tobacco. The application shall be 
submitted within such time, in such form, and in such man-
ner as the Secretary may require. 
(c) CURRENT PRODUCTION BASE.—The Secretary 
shall establish a production base applicable to each eligible 
active producer of quota tobacco identified under subsection 
(b). A producer’s production base shall be equal to the quan-
tity, in pounds, of quota tobacco subject to the basic mar-
keting quota marketed or considered planted by the pro-
ducer under the Agriculture Adjustment Act of 1938 for the 
marketing year in effect on the date of the enactment of 
this Act. 
(d) TOTAL PAYMENT AMOUNTS BASED ON 2002 MAR-
KETING YEAR.— 
(1) 
CALCULATION
OF
ANNUAL
PAYMENT 
AMOUNT.—During fiscal years 2005 through 2009, the
409 
Secretary shall make payments to all eligible active 
producers of quota tobacco identified under subsection 
(b) in an annual amount equal to the product ob-
tained by multiplying, for each kind of tobacco— 
(A) $0.60 per pound; by 
(B) the total national effective marketing 
quota established under the Agriculture Adjust-
ment Act of 1938 for the 2002 marketing year 
for that kind of tobacco. 
(2) MARKETING QUOTAS OTHER THAN POUND-
AGE QUOTAS.—For each kind of tobacco for which 
there is a marketing quota or allotment on an acreage 
basis, the Secretary shall convert the tobacco farm 
marketing quotas or allotments established under the 
Agriculture Adjustment Act of 1938 for the 2002 mar-
keting year for that kind of tobacco to a poundage 
basis before executing the mathematical equation spec-
ified in paragraph (1). 
(e) INDIVIDUAL PAYMENT AMOUNTS.—The annual 
payment amount for each eligible active producer of quota 
tobacco identified under subsection (b) with respect to a 
kind of tobacco under this section shall bear the same ratio 
to the amount determined by the Secretary under subsection 
(d) with respect to that kind of tobacco as the individual 
production base of that eligible active producer under sub-
410 
section (c) with respect to that kind of tobacco bears to the 
total production bases determined under that subsection for 
all eligible active producers of that kind of tobacco. 
(f) DEATH OF TOBACCO PRODUCER.—If a tobacco pro-
ducer who is entitled to payments under this section dies 
and is survived by a spouse or one or more dependents, the 
right to receive the payments shall transfer to the surviving 
spouse or, if there is no surviving spouse, to the estate of 
the tobacco producer. 
SEC. 724. RESOLUTION OF DISPUTES. 
Any dispute regarding the eligibility of a person to 
receive a payment under this subtitle, or the amount of the 
payment, shall be resolved by the county committee estab-
lished under section 8 of the Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590h) for the county or other 
area in which the farming operation of the person is lo-
cated. 
SEC. 725. SOURCE OF FUNDS FOR PAYMENTS. 
There is hereby appropriated to the Secretary, from 
amounts in the general fund of the Treasury, such amounts 
as the Secretary needs in order to make the payments re-
quired by sections 722 and 723, except that such amounts 
shall not exceed the lesser of— 
(1) amounts received in the Treasury under 
chapter 52 of the Internal Revenue Code of 1986 (re-
411 
lating to tobacco products and cigarette papers and 
tubes), or 
(2) $9,600,000,000. 
TITLE VIII—TRADE PROVISIONS 
SEC. 801. CEILING FANS. 
(a) IN GENERAL.—Subchapter II of chapter 99 of the 
Harmonized Tariff Schedule of the United States is amend-
ed by inserting in numerical sequence the following new 
heading: 
‘‘ 
9902.84.14 
Ceiling fans for permanent installa-
tion (provided for in subheading 
8414.51.00) ............................................
Free 
No change 
No change 
On or before 
12/31/2006 
’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section applies to goods entered, or withdrawn from ware-
house, for consumption on or after the 15th day after the 
date of enactment of this Act. 
SEC. 802. CERTAIN STEAM GENERATORS, AND CERTAIN RE-
ACTOR VESSEL HEADS, USED IN NUCLEAR FA-
CILITIES. 
(a) 
CERTAIN
STEAM
GENERATORS.—Heading 
9902.84.02 of the Harmonized Tariff Schedule of the United 
States is amended by striking ‘‘12/31/2006’’ and inserting 
‘‘12/31/2008’’. 
(b) CERTAIN REACTOR VESSEL HEADS.—Subchapter 
II of chapter 99 of the Harmonized Tariff Schedule of the
412 
United States is amended by inserting in numerical se-
quence the following new heading: 
‘‘ 
9902.84.03 
Reactor vessel 
heads for nuclear 
reactors (provided 
for in subheading 
8401.40.00) .........
Free 
No change 
No change 
On or before 
12/31/2008 
’’. 
(c) EFFECTIVE DATE.— 
(1) SUBSECTION (a).—The amendment made by 
subsection (a) shall take effect on the date of the en-
actment of this Act. 
(2) SUBSECTION (b).—The amendment made by 
subsection (b) shall apply to goods entered, or with-
drawn from warehouse, for consumption on or after 
the 15th day after the date of the enactment of this 
Act.
Union Calendar No. 317 
108TH CONGRESS 
2D SESSION 
H. R. 4520 
[Report No. 108–548, Part I] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
remove impediments in such Code and make our 
manufacturing, service, and high-technology busi-
nesses and workers more competitive and produc-
tive both at home and abroad. 
JUNE 16, 2004 
Reported from the Committee on Ways and Means with 
an amendment 
JUNE 16, 2004 
Referral to the Committee on Agriculture extended for a 
period ending not later than June 16, 2004 
JUNE 16, 2004 
The Committee on Agriculture discharged; committed to 
the Committee of the Whole House on the State of the 
Union and ordered to be printed