holder, the base quota level established under section 502,
the right to payments under subsection 504, and the life-
time limitation on payments established under section 504
shall transfer to the new owner of the farm to the same
extent and in the same manner as those subsections ap-
plied to the previous quota holder.
(c) DEATH
OF QUOTA LESSEE
OR QUOTA TEN-
ANT.—If a quota lessee or quota tenant 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 surviving dependents in
equal shares.
SEC. 506. ACCELERATION OF PAYMENTS.
(a) ACCELERATION REQUIRED.—On the occurrence
of any of the events described in subsection (b), the Sec-
retary shall make an accelerated lump sum payment in
accordance with subsection (c)—
(1) to each quota holder, quota lessee, and
quota tenant for any affected kind of tobacco to
compensate such persons for lost tobacco quota and
market disruption resulting from the event; and
(2) to each tobacco warehouseman to com-
pensate tobacco warehousemen for market disrup-
tion resulting from the event.
(b) TRIGGERING EVENTS.—The Secretary shall make
accelerated payments under subsection (a) if after the
date of enactment of this Act—
(1) for three consecutive marketing years, the
national marketing quota for a kind of tobacco is
less than 50 percent of the national marketing quota
for the kind of tobacco for the 1997 marketing year;
or
(2) Congress repeals or makes ineffective, di-
rectly or indirectly, any provision of—
(A) section 316(g) of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1314b(g));
(B) section 319(g) of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1314e(g));
(C) section 106 of the Agricultural Act of
1949 (7 U.S.C. 1445);
(D) section 106A of the Agricultural Act
of 1949 (7 U.S.C. 1445–1); or
(E) section 106B of the Agricultural Act
of 1949 (7 U.S.C. 1445–2).
(c) AMOUNT.—The amount of the accelerated pay-
ments made to each quota holder, quota lessee, quota ten-
ant, and tobacco warehouseman under this section shall
be equal to—
(1) the amount of the lifetime limitation estab-
lished for the quota holder, quota lessee, quota ten-
ant, or tobacco warehouseman under section 504(c);
less
(2) any payments previously made under sec-
tion 504 to the quota holder, quota lessee, quota
tenant, or tobacco warehouseman.
(d) EFFECT OF ACCELERATION.—If accelerated pay-
ments are required under this section, the Secretary shall
no longer make payments on an annual basis under sec-
tion 504.
SEC. 508. PAYMENT SOURCE AND AGGREGATE ANNUAL
PAYMENTS.
(a) PAYMENT SOURCE AND ADMINISTRATION.—The
Secretary shall use amounts in the Tobacco Community
Revitalization Trust Fund to make payments under this
title. The payment of compensation to quota holders,
quota lessees, and quota tenants under this title shall be
administered separately from the payment of compensa-
tion to tobacco warehousemen.
(b) ANNUAL PAYMENT LIMITATION
TO PRODUC-
ERS.—Except as provided in subsection (c), the total
amount payable under this title for any marketing year
to quota holders, quota lessees, and quota tenants shall
not exceed $1,600,000,000. Amounts paid to tobacco
warehousemen under this title shall not be counted toward
this limitation.
(c) ACCELERATED PAYMENTS.—The annual limita-
tion in subsection (b) shall not apply if accelerated pay-
ments for lost tobacco quota are made in accordance with
section 506.
(d) REDUCTIONS.—If the total amount required to
be paid under section 504 to quota holders, quota lessees,
and quota tenants for a marketing year exceeds the annual
limitation specified in subsection (b), the Secretary shall
make a pro rata reduction in the amounts payable to
quota holders, quota lessees, and quota tenants under
such section to ensure that the total amount of the pay-
ments for lost tobacco quota does not exceed the specified
limitation.
(e) ROLLOVER OF PAYMENTS FOR LOST TOBACCO
QUOTA.—Subject to subsection (b), if the Secretary makes
a reduction in accordance with subsection (d), the amount
of the reduction shall be applied to the next marketing
year and added to the payments for lost tobacco quota
to quota holders, quota lessees, and quota tenants for the
marketing year.
SEC. 509. COST-OF-LIVING ADJUSTMENT.
(a) DEFINITIONS.—In this section:
(1) BASE QUARTER.—The term ‘‘base quarter’’,
means the last three months of a marketing year.
(2) PRICE
INDEX.—The term ‘‘price index’’
means the Consumer Price Index (all items—United
States city average) published monthly by the Bu-
reau of Labor Statistics. The price index for a base
quarter is the arithmetical mean of the index for the
3 months comprising that base quarter.
(b) ADJUSTMENT REQUIRED.—Beginning with the
2000 marketing year for a kind of tobacco, the amounts
described in subsection (c) shall each be increased by the
percent change in the price index for the base quarter of
the preceding marketing year over the price index for the
base quarter of the second preceding marketing year, ad-
justed to the nearest 1⁄10 of 1 percent.
(c) COVERED AMOUNTS.—The adjustments required
by subsection (b) shall be made to—
(1) the amounts specified in subsections (a)(3)
and (c) of section 504;
(2) the amounts specified in subsections
(a)(1)(B)(ii) and (a)(2)(B)(i)(II) of section 505;
(3) the amount specified in section 508(b); and
(4) the base commission level for each tobacco
warehouseman.
SEC. 510. EFFECTIVE DATE.
This title shall take effect beginning with the 1999
marketing year of each kind of tobacco for which a na-
tional marketing quota is in effect.
TITLE VI—COMMUNITY, FARM-
ER, AND WORKER TRANSI-
TION ASSISTANCE
SEC. 601. TOBACCO COMMUNITY ECONOMIC DEVELOP-
MENT GRANTS.
(a) AUTHORITY.—The Secretary shall make grants to
tobacco-growing States in accordance with this section to
enable the States to carry out economic development ini-
tiatives in tobacco-growing communities.
(b) APPLICATION.—To be eligible to receive payments
under this section, a State shall prepare and submit to
the Secretary an application at such time, in such manner,
and containing such information as the Secretary may re-
quire, including—
(1) a description of the activities that the State
will carry out using amounts received under the
grant;
(2) a designation of an appropriate State agen-
cy to administer amounts received under the grant;
and
(3) a description of the steps to be taken to en-
sure that the funds are distributed in accordance
with subsection (e), including the manner in which
the State proposes to use historically black colleges
and universities in the distribution and use of the
funds.
(c) AMOUNT OF GRANT.—
(1) ALLOTMENT METHOD.—From the amounts
available to carry out this section for a fiscal year,
the Secretary shall allot to each State an amount
that bears the same ratio to the amounts available
as the total income of the State derived from the
production of tobacco during the 1995, 1996, and
1997 marketing years bears to the total income of
all States derived from the production of tobacco
during the 1995, 1996, and 1997 marketing years.
For the 1995, 1996, and 1997 marketing years, the
Secretary shall determine the amount of income de-
rived from the production of tobacco in each State
and in all States.
(2) MATCHING FUNDS REQUIREMENT.—A State
may not receive more than 50 percent of the allot-
ment determined for the State under paragraph (1)
for a fiscal year unless the State makes available,
out of non-Federal funds, matching funds in an
amount equal to not less than 50 percent of the al-
lotment for the same purposes for which the allotted
funds may be used under subsection (e).
(3) FAILURE TO PROVIDE MATCHING FUNDS.—
If a State fails to comply with the requirement to
provide matching funds for a fiscal year under para-
graph (2), the Secretary shall withhold from pay-
ment to the State for that fiscal year an amount
equal to the difference between—
(A) the 50 percent of the amount that
would be allotted and paid to the State under
paragraph (1) (if the full amount of matching
funds were provided by the State); and
(B) the amount of matching funds actually
provided by the State.
(4) REAPPORTIONMENT.—The Secretary shall
reapportion amounts withheld under paragraph (3)
for a fiscal year among the States satisfying the
matching requirement for that fiscal year. Any re-
apportionment of funds under this paragraph shall
be subject to the matching requirement specified in
paragraph (2).
(d) PAYMENTS.—
(1) IN GENERAL.—A State that has an applica-
tion approved by the Secretary under subsection (b)
shall be entitled to a payment under this section in
an amount determined under subsection (c).
(2) FORM OF PAYMENTS.—The Secretary may
make payments under this section to a State in in-
stallments, and in advance or by way of reimburse-
ment, with necessary adjustments on account of
overpayments or underpayments, as the Secretary
may determine.
(3) REALLOTMENT.—Any portion of the allot-
ment of a State under subsection (c) that the Sec-
retary determines will not be used to carry out this
section in accordance with an approved State appli-
cation required under subsection (b), shall be reallot-
ted by the Secretary to other States in proportion to
the original allotments to the other States.
(e) USE AND DISTRIBUTION OF FUNDS.—
(1) IN GENERAL.—Amounts received by a State
under this section shall be used to carry out eco-
nomic development activities, including—
(A) rural business enterprise activities de-
scribed in subsections (c) and (e) of section
310B of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1932);
(B) down payment loan assistance pro-
grams that are similar to the program described
in section 310E of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1935);
(C) activities designed to help create pro-
ductive farm or off-farm employment in rural
areas to provide a more viable economic base
and enhance opportunities for improved in-
comes, living standards, and contributions by
rural individuals to the economic and social de-
velopment of tobacco communities;
(D) activities that expand existing infra-
structure, facilities, and services to capitalize on
opportunities to diversify economies in tobacco
communities and that support the development
of new industries or commercial ventures;
(E) activities by agricultural organizations
that provide assistance directly to active tobacco
producers to assist in developing other agricul-
tural activities that supplement tobacco-produc-
ing activities;
(F) initiatives designed to create or expand
locally owned value-added processing and mar-
keting operations in tobacco communities; and
(G) technical assistance activities by per-
sons to support farmer-owned enterprises, or
agriculture-based rural development enterprises,
of the type described in section 252 or 253 of
the Trade Act of 1974 (19 U.S.C. 2342, 2343).
(2) TOBACCO-GROWING COUNTIES.—Assistance
may be provided by a State under this section only
to assist a county in the State that has been deter-
mined by the Secretary to have in excess of
$100,000 in income derived from the production of
tobacco during one or more of the 1995, 1996, or
1997 marketing years.
(3) DISTRIBUTION.—
(A) ECONOMIC
DEVELOPMENT
ACTIVI-
TIES.—Not less than 20 percent of the amounts
received by a State under this section shall be
used to carry out—
(i) economic development activities de-
scribed in subparagraph (E) or (F) of
paragraph (1); or
(ii) agriculture-based rural develop-
ment activities described in paragraph
(1)(G).
(B) 
TECHNICAL
ASSISTANCE
ACTIVI-
TIES.—Not less than 4 percent of the amounts
received by a State under this section shall be
used to carry out technical assistance activities
described in paragraph (1)(G).
(A) Employment services of the type de-
scribed in section 235 of the Trade Act of 1974
(19 U.S.C. 2295).
(B) Training described in section 236 of
the Trade Act of 1974 (19 U.S.C. 2296), ex-
cept that notwithstanding the provisions of sec-
tion 236(a)(2)(A) of such Act, the total amount
of payments for training under this section for
any fiscal year shall not exceed $25,000,000.
(C) Tobacco worker readjustment allow-
ances, which shall be provided in the same man-
ner as trade readjustment allowances are pro-
vided under part I of subchapter B of chapter
2 of title II of the Trade Act of 1974 (19
U.S.C. 2291 et seq.), except that—
(i) 
the 
provisions 
of 
sections
231(a)(5)(C) and 231(c) of such Act (19
U.S.C. 2291(a)(5)(C), 2291(c)), authoriz-
ing the payment of trade readjustment al-
lowances upon a finding that it is not fea-
sible or appropriate to approve a training
program for a worker, shall not be applica-
ble to payment of allowances under this
section; and