(b) ELIGIBILITY.—To be eligible to receive payments
under this title, a quota holder, quota lessee, quota tenant,
or tobacco warehouseman shall demonstrate to the satis-
faction of the Secretary that, with respect to the 1995,
1996, or 1997 marketing year—
(1) the person was a quota holder and realized
income from the production of tobacco through—
(A) the active production of tobacco;
(B) the lease and transfer of tobacco quota
to another farm;
(C) the rental of all or part of the farm of
the quota holder, including the right to produce
tobacco, to another tobacco producer; or
(D) the hiring of a quota tenant to
produce tobacco;
(2) the person was a quota lessee;
(3) the person was a quota tenant; or
(4) the person was a warehouseman that mar-
keted tobacco on behalf of active tobacco producers.
(c) APPLICATION REQUIRED.—A quota holder, quota
lessee, quota tenant, or tobacco warehouseman shall pre-
pare and submit to the Secretary an application at such
time, in such manner, and containing such information as
the Secretary may require, including information suffi-
cient to make the demonstration required under sub-
section (b).
SEC. 502. DETERMINATION OF BASE QUOTA LEVELS FOR
TOBACCO PRODUCERS.
(a) DETERMINATION
REQUIRED.—The Secretary
shall determine, for each quota holder, quota lessee, and
quota tenant eligible to receive payments under this title,
the base quota level for the 1995, 1996, and 1997 market-
ing years.
(b) QUOTA HOLDERS.—The base quota level for a
quota holder shall be equal to the average tobacco farm
marketing quota established for the farm owned by the
quota holder for the 1995, 1996,and 1997 marketing
years.
(c) QUOTA LESSEES.—The base quota level for a
quota lessee shall be equal to—
(1) 50 percent of the average number of pounds
of tobacco quota established for a farm for the 1995,
1996, and 1997 marketing years—
(A) that was leased and transferred to a
farm owned by the quota lessee; or
(B) for which the rights to produce the to-
bacco were rented to the quota lessee; less
(2) 25 percent of the average number of pounds
of tobacco quota described in paragraph (1) for
which a quota tenant was the principal producer of
the tobacco quota.
(d) QUOTA TENANTS.—The base quota level for a
quota tenant shall be equal to the sum of—
(1) 50 percent of the average number of pounds
of tobacco quota established for a farm for the 1995,
1996, and 1997 marketing years—
(A) that was owned by a quota holder; and
(B) for which the quota tenant was the
principal producer of the tobacco on the farm;
and
(2) 25 percent of the average number of pounds
of tobacco quota for the 1995, 1996, and 1997 mar-
keting years—
(A) that was leased and transferred to a
farm owned by a quota lessee or for which the
rights to produce the tobacco were rented to a
quota lessee; and
(B) for which the quota tenant was the
principal producer of the tobacco on the farm.
(e) MARKETING QUOTAS OTHER THAN POUNDAGE
QUOTAS.—For each kind of tobacco for which there is a
marketing quota or allotment (on an acreage basis), the
base quota level for each quota holder, quota lessee, or
quota tenant shall be determined in accordance with this
section (based on a poundage conversion) in an amount
equal to the product obtained by multiplying—
(1) the average tobacco farm marketing quota
or allotment for the 1995, 1996, and 1997 market-
ing years; by
(2) the average county yield per acre for the
county in which the farm is located for the kind of
tobacco for the marketing years.
SEC. 503. DETERMINATION OF BASE QUOTA VOLUME AND
COMMISSION LEVELS FOR TOBACCO WARE-
HOUSEMEN.
(a) DETERMINATION
REQUIRED.—The Secretary
shall determine for each tobacco warehouseman eligible to
receive payments under this title the base quota volume
level and commission level for the 1995, 1996, and 1997
marketing years.
(b) BASE QUOTA VOLUME.—The base quota volume
level for a tobacco warehouseman shall be determined
using data collected by the Agricultural Marketing Service
of the Department of Agriculture and shall be equal to
the product obtained by multiplying—
(1) the average volume of net sales of the to-
bacco warehouseman for the 1995, 1996, and 1997
marketing years; by
(1) the percentage by which the national mar-
keting quota for the kind of tobacco involved is less
than the average national marketing quota level for
that kind of tobacco for the 1995, 1996, and 1997
marketing years; by
(2) the base quota level for the quota holder,
quota lessee, or quota tenant with respect to that
kind of tobacco; by
(3) $4.00.
(b) TOBACCO WAREHOUSEMAN PAYMENTS.—During
any marketing year in which payments are required to be
made under section 501 with respect to a kind of tobacco,
the Secretary shall make payments to each tobacco ware-
houseman that is eligible to receive payments for reduced
tobacco marketing with respect to that kind of tobacco in
an amount that is equal to the product obtained by mul-
tiplying—
(1) the percentage by which the national mar-
keting quota for the kind of tobacco involved is less
than the average national marketing quota level for
that kind of tobacco for the 1995, 1996, and 1997
marketing years; by
(2) the base quota volume level for the tobacco
warehouseman with respect to that kind of tobacco;
by
(3) the base commission level for the tobacco
warehouseman with respect to that kind of tobacco;
by
(4) $4.00.
(c) LIFETIME LIMITATION ON PAYMENTS.—
(1) PRODUCER LIMITS.—The total amount of
payments made under this section to a quota holder,
quota lessee, or quota tenant shall not exceed the
product obtained by multiplying—
(A) the base quota level for the quota hold-
er, quota lessee, or quota tenant; by
(B) $8.00 per pound.
(2) SPECIAL RULE FOR QUOTA HOLDERS WHO
ARE
ACTIVE
PRODUCERS.—In the case of quota
holders who receive income from the active produc-
tion of tobacco, the amount specified in paragraph
(1)(B) shall be $10,00 per pound rather than $8.00
per pound.
(3) 
TOBACCO
WAREHOUSEMAN.—The 
total
amount of payments made under this section to a
tobacco warehouseman shall not exceed the product
obtained by multiplying—
(A) the base quota volume level for the to-
bacco warehouseman with respect to the kind of
tobacco involved; by
(B) the base commission level for the to-
bacco warehouseman with respect to that kind
of tobacco; and
(C) $10.00.
SEC. 505. EFFECT OF CHANGES IN QUOTA OR FARM OWN-
ERSHIP.
(a) SALE AND TRANSFER OF QUOTA.—Effective be-
ginning January 1, 1999, on the sale and transfer of a
farm marketing quota under section 316(g) or 319(g) of
the Agricultural Adjustment Act of 1938 (7 U.S.C.
1314b(g), 1314e(g))—
(1) the person who sold and transferred the
quota shall have—
(A) the base quota level attributable to the
person reduced by the base quota level attrib-
utable to the quota that is sold and transferred;
and
(B) the lifetime limitation on payments es-
tablished under section 504 attributable to the
person reduced by the product obtained by mul-
tiplying—
(i) the base quota level attributable to
the quota; by
(ii) $8.00 per pound (or $10.00 per
pound if the person is an active tobacco
producer); and
(2) the person who acquired the quota shall
have—
(A) the base quota level attributable to the
person increased by the base quota level attrib-
utable to the quota that was sold and trans-
ferred; and
(B) the lifetime limitation on payments es-
tablished under section 504 attributable to the
person—
(i) increased by the product obtained
by multiplying—
(I) the base quota level attrib-
utable to the quota; by
(II) $8.00 per pound (or $10.00
per pound if the person is an active
tobacco producer); but
(ii) decreased by any payments for
lost tobacco quota previously made that
are attributable to the quota that was sold
and transferred.
(b) SALE OR TRANSFER OF FARM.—On the sale or
transfer of ownership of a farm that is owned by a quota