H. R. 4520—97
(2) by adding at the end the following new paragraph:
‘‘(2) COMMONWEALTH OF PUERTO RICO.—
‘‘(A) IN
GENERAL.—If dividends are received during
a taxable year by a corporation—
‘‘(i) created or organized in, or under the law of,
the Commonwealth of Puerto Rico, and
‘‘(ii) with respect to which the requirements of
subparagraphs (A), (B), and (C) of section 881(b)(1)
are met for the taxable year,
subsection (a) shall be applied for such taxable year by
substituting ‘10 percent’ for ‘30 percent’.
‘‘(B) APPLICABILITY.—If, on or after the date of the
enactment of this paragraph, an increase in the rate of
the Commonwealth of Puerto Rico’s withholding tax which
is generally applicable to dividends paid to United States
corporations not engaged in a trade or business in the
Commonwealth to a rate greater than 10 percent takes
effect, this paragraph shall not apply to dividends received
on or after the effective date of the increase.’’.
(c) CONFORMING AMENDMENTS.—
(1) Subsection (b) of section 881 is amended by striking
‘‘GUAM AND VIRGIN ISLANDS CORPORATIONS’’ in the heading
and inserting ‘‘POSSESSIONS’’.
(2) Paragraph (1) of section 881(b) is amended by striking
‘‘IN GENERAL’’ in the heading and inserting ‘‘GUAM, AMERICAN
SAMOA, THE
NORTHERN
MARIANA
ISLANDS, AND
THE
VIRGIN
ISLANDS’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to dividends paid after the date of the enactment of
this Act.
SEC. 421. FOREIGN TAX CREDIT UNDER ALTERNATIVE MINIMUM TAX.
(a) IN GENERAL.—
(1) Subsection (a) of section 59 is amended by striking
paragraph (2) and by redesignating paragraphs (3) and (4)
as paragraphs (2) and (3), respectively.
(2) Section 53(d)(1)(B)(i)(II) is amended by striking ‘‘and
if section 59(a)(2) did not apply’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2004.
SEC. 422. INCENTIVES TO REINVEST FOREIGN EARNINGS IN UNITED
STATES.
(a) IN GENERAL.—Subpart F of part III of subchapter N of
chapter 1 (relating to controlled foreign corporations) is amended
by adding at the end the following new section:
‘‘SEC. 965. TEMPORARY DIVIDENDS RECEIVED DEDUCTION.
‘‘(a) DEDUCTION.—
‘‘(1) IN GENERAL.—In the case of a corporation which is
a United States shareholder and for which the election under
this section is in effect for the taxable year, there shall be
allowed as a deduction an amount equal to 85 percent of the
cash dividends which are received during such taxable year
by such shareholder from controlled foreign corporations.
‘‘(2) DIVIDENDS PAID INDIRECTLY FROM CONTROLLED FOR-
EIGN
CORPORATIONS.—If, within the taxable year for which
the election under this section is in effect, a United States
H. R. 4520—98
shareholder receives a cash distribution from a controlled for-
eign corporation which is excluded from gross income under
section 959(a), such distribution shall be treated for purposes
of this section as a cash dividend to the extent of any amount
included in income by such United States shareholder under
section 951(a)(1)(A) as a result of any cash dividend during
such taxable year to—
‘‘(A) such controlled foreign corporation from another
controlled foreign corporation that is in a chain of owner-
ship described in section 958(a), or
‘‘(B) any other controlled foreign corporation in such
chain of ownership, but only to the extent of cash distribu-
tions described in section 959(b) which are made during
such taxable year to the controlled foreign corporation from
which such United States shareholder received such dis-
tribution.
‘‘(b) LIMITATIONS.—
‘‘(1) IN
GENERAL.—The amount of dividends taken into
account under subsection (a) shall not exceed the greater of—
‘‘(A) $500,000,000,
‘‘(B) the amount shown on the applicable financial
statement as earnings permanently reinvested outside the
United States, or
‘‘(C) in the case of an applicable financial statement
which fails to show a specific amount of earnings perma-
nently reinvested outside the United States and which
shows a specific amount of tax liability attributable to
such earnings, the amount equal to the amount of such
liability divided by 0.35.
The amounts described in subparagraphs (B) and (C) shall
be treated as being zero if there is no such statement or
such statement fails to show a specific amount of such earnings
or liability, as the case may be.
‘‘(2) DIVIDENDS MUST BE EXTRAORDINARY.—The amount of
dividends taken into account under subsection (a) shall not
exceed the excess (if any) of—
‘‘(A) the dividends received during the taxable year
by such shareholder from controlled foreign corporations,
over
‘‘(B) the annual average for the base period years of—
‘‘(i) the dividends received during each base period
year by such shareholder from controlled foreign cor-
porations,
‘‘(ii) the amounts includible in such shareholder’s
gross income for each base period year under section
951(a)(1)(B) with respect to controlled foreign corpora-
tions, and
‘‘(iii) the amounts that would have been included
for each base period year but for section 959(a) with
respect to controlled foreign corporations.
The amount taken into account under clause (iii) for any
base period year shall not include any amount which is
not includible in gross income by reason of an amount
described in clause (ii) with respect to a prior taxable
year. Amounts described in subparagraph (B) for any base
period year shall be such amounts as shown on the most
recent return filed for such year; except that amended
H. R. 4520—99
returns filed after June 30, 2003, shall not be taken into
account.
‘‘(3) REDUCTION OF BENEFIT IF INCREASE IN RELATED PARTY
INDEBTEDNESS.—The amount of dividends which would (but
for this paragraph) be taken into account under subsection
(a) shall be reduced by the excess (if any) of—
‘‘(A) the amount of indebtedness of the controlled for-
eign corporation to any related person (as defined in section
954(d)(3)) as of the close of the taxable year for which
the election under this section is in effect, over
‘‘(B) the amount of indebtedness of the controlled for-
eign corporation to any related person (as so defined) as
of the close of October 3, 2004.
All controlled foreign corporations with respect to which the
taxpayer is a United States shareholder shall be treated as
1 controlled foreign corporation for purposes of this paragraph.
‘‘(4) REQUIREMENT
TO
INVEST
IN
UNITED
STATES.—Sub-
section (a) shall not apply to any dividend received by a United
States shareholder unless the amount of the dividend is
invested in the United States pursuant to a domestic reinvest-
ment plan which—
‘‘(A) is approved by the taxpayer’s president, chief
executive officer, or comparable official before the payment
of such dividend and subsequently approved by the tax-
payer’s board of directors, management committee, execu-
tive committee, or similar body, and
‘‘(B) provides for the reinvestment of such dividend
in the United States (other than as payment for executive
compensation), including as a source for the funding of
worker hiring and training, infrastructure, research and
development, capital investments, or the financial stabiliza-
tion of the corporation for the purposes of job retention
or creation.
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this
section—
‘‘(1) 
APPLICABLE
FINANCIAL
STATEMENT.—The 
term
‘applicable financial statement’ means, with respect to a United
States shareholder, the most recently audited financial state-
ment (including notes and other documents which accompany
such statement) which includes such shareholder—
‘‘(A) which is certified on or before June 30, 2003,
as being prepared in accordance with generally accepted
accounting principles, and
‘‘(B) which is used for the purposes of a statement
or report—
‘‘(i) to creditors,
‘‘(ii) to shareholders, or
‘‘(iii) for any other substantial nontax purpose.
In the case of a corporation required to file a financial statement
with the Securities and Exchange Commission, such term
means the most recent such statement filed on or before June
30, 2003.
‘‘(2) BASE PERIOD YEARS.—
‘‘(A) IN GENERAL.—The base period years are the 3
taxable years—
‘‘(i) which are among the 5 most recent taxable
years ending on or before June 30, 2003, and
H. R. 4520—100
‘‘(ii) which are determined by disregarding—
‘‘(I) 1 taxable year for which the sum of the
amounts described in clauses (i), (ii), and (iii) of
subsection (b)(2)(B) is the largest, and
‘‘(II) 1 taxable year for which such sum is
the smallest.
‘‘(B) SHORTER PERIOD.—If the taxpayer has fewer than
5 taxable years ending on or before June 30, 2003, then
in lieu of applying subparagraph (A), the base period years
shall include all the taxable years of the taxpayer ending
on or before June 30, 2003.
‘‘(C) MERGERS, ACQUISITIONS, ETC.—
‘‘(i) IN
GENERAL.—Rules similar to the rules of
subparagraphs (A) and (B) of section 41(f)(3) shall
apply for purposes of this paragraph.
‘‘(ii) SPIN-OFFS, ETC.—If there is a distribution to
which section 355 (or so much of section 356 as relates
to section 355) applies during the 5-year period referred
to in subparagraph (A)(i) and the controlled corporation
(within the meaning of section 355) is a United States
shareholder—
‘‘(I) the controlled corporation shall be treated
as being in existence during the period that the
distributing corporation (within the meaning of
section 355) is in existence, and
‘‘(II) for purposes of applying subsection (b)(2)
to the controlled corporation and the distributing
corporation, amounts described in subsection
(b)(2)(B) which are received or includible by the
distributing corporation or controlled corporation
(as the case may be) before the distribution
referred to in subclause (I) from a controlled for-
eign corporation shall be allocated between such
corporations in proportion to their respective
interests as United States shareholders of such
controlled foreign corporation immediately after
such distribution.
Subclause (II) shall not apply if neither the controlled
corporation nor the distributing corporation is a United
States shareholder of such controlled foreign corpora-
tion immediately after such distribution.
‘‘(3) DIVIDEND.—The term ‘dividend’ shall not include
amounts includible in gross income as a dividend under section
78, 367, or 1248. In the case of a liquidation under section
332 to which section 367(b) applies, the preceding sentence
shall not apply to the extent the United States shareholder
actually receives cash as part of the liquidation.
‘‘(4) COORDINATION
WITH
DIVIDENDS
RECEIVED
DEDUC-
TION.—No deduction shall be allowed under section 243 or
245 for any dividend for which a deduction is allowed under
this section.
‘‘(5) CONTROLLED GROUPS.—
‘‘(A) IN
GENERAL.—All United States shareholders
which are members of an affiliated group filing a consoli-
dated return under section 1501 shall be treated as one
United States shareholder.
H. R. 4520—101
‘‘(B) APPLICATION OF $500,000,000 LIMIT.—All corpora-
tions which are treated as a single employer under section
52(a) shall be limited to one $500,000,000 amount in sub-
section (b)(1)(A), and such amount shall be divided among
such corporations under regulations prescribed by the Sec-
retary.
‘‘(C) PERMANENTLY REINVESTED EARNINGS.—If a finan-
cial statement is an applicable financial statement for more
than 1 United States shareholder, the amount applicable
under subparagraph (B) or (C) of subsection (b)(1) shall
be divided among such shareholders under regulations pre-
scribed by the Secretary.
‘‘(d) DENIAL
OF FOREIGN TAX CREDIT; DENIAL
OF CERTAIN
EXPENSES.—
‘‘(1) FOREIGN TAX CREDIT.—No credit shall be allowed under
section 901 for any taxes paid or accrued (or treated as paid
or accrued) with respect to the deductible portion of—
‘‘(A) any dividend, or
‘‘(B) any amount described in subsection (a)(2) which
is included in income under section 951(a)(1)(A).
No deduction shall be allowed under this chapter for any tax
for which credit is not allowable by reason of the preceding
sentence.
‘‘(2) EXPENSES.—No deduction shall be allowed for expenses
properly allocated and apportioned to the deductible portion
described in paragraph (1).
‘‘(3) DEDUCTIBLE PORTION.—For purposes of paragraph (1),
unless the taxpayer otherwise specifies, the deductible portion
of any dividend or other amount is the amount which bears
the same ratio to the amount of such dividend or other amount
as the amount allowed as a deduction under subsection (a)
for the taxable year bears to the amount described in subsection
(b)(2)(A) for such year.
‘‘(e) INCREASE IN TAX ON INCLUDED AMOUNTS NOT REDUCED
BY CREDITS, ETC.—
‘‘(1) IN GENERAL.—Any tax under this chapter by reason
of nondeductible CFC dividends shall not be treated as tax
imposed by this chapter for purposes of determining—
‘‘(A) the amount of any credit allowable under this
chapter, or
‘‘(B) the amount of the tax imposed by section 55.
Subparagraph (A) shall not apply to the credit under section
53 or to the credit under section 27(a) with respect to taxes
attributable to such dividends.
‘‘(2) LIMITATION ON REDUCTION IN TAXABLE INCOME, ETC.—
‘‘(A) IN GENERAL.—The taxable income of any United
States shareholder for any taxable year shall in no event
be less than the amount of nondeductible CFC dividends
received during such year.
‘‘(B) COORDINATION WITH SECTION 172.—The nondeduct-
ible CFC dividends for any taxable year shall not be taken
into account—
‘‘(i) in determining under section 172 the amount
of any net operating loss for such taxable year, and
‘‘(ii) in determining taxable income for such taxable
year for purposes of the 2nd sentence of section
172(b)(2).
H. R. 4520—102
‘‘(3) NONDEDUCTIBLE CFC DIVIDENDS.—For purposes of this
subsection, the term ‘nondeductible CFC dividends’ means the
excess of the amount of dividends taken into account under
subsection (a) over the deduction allowed under subsection
(a) for such dividends.
‘‘(f) ELECTION.—The taxpayer may elect to apply this section
to—
‘‘(1) the taxpayer’s last taxable year which begins before
the date of the enactment of this section, or
‘‘(2) the taxpayer’s first taxable year which begins during
the 1-year period beginning on such date.
Such election may be made for a taxable year only if made before
the due date (including extensions) for filing the return of tax
for such taxable year.’’.
(b) ALTERNATIVE MINIMUM TAX.—Subparagraph (C) of section
56(g)(4) is amended by inserting after clause (v) the following new
clause:
‘‘(vi) SPECIAL
RULE
FOR
CERTAIN
DISTRIBUTIONS
FROM CONTROLLED FOREIGN CORPORATIONS.—Clause (i)
shall not apply to any deduction allowable under sec-
tion 965.’’.
(c) CLERICAL AMENDMENT.—The table of sections for subpart
F of part III of subchapter N of chapter 1 is amended by adding
at the end the following new item:
‘‘Sec. 965. Temporary dividends received deduction.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years ending on or after the date of the
enactment of this Act.
SEC. 423. DELAY IN EFFECTIVE DATE OF FINAL REGULATIONS GOV-
ERNING EXCLUSION OF INCOME FROM INTERNATIONAL
OPERATION OF SHIPS OR AIRCRAFT.
Notwithstanding the provisions of Treasury regulation § 1.883–
5, the final regulations issued by the Secretary of the Treasury
relating to income derived by foreign corporations from the inter-
national operation of ships or aircraft (Treasury regulations § 1.883–
1 through § 1.883–5) shall apply to taxable years of a foreign cor-
poration seeking qualified foreign corporation status beginning after
September 24, 2004.
SEC. 424. STUDY OF EARNINGS STRIPPING PROVISIONS.
(a) IN GENERAL.—The Secretary of the Treasury or the Sec-
retary’s delegate shall conduct a study of the effectiveness of the
provisions of the Internal Revenue Code of 1986 applicable to
earnings stripping, including a study of—
(1) the effectiveness of section 163(j) of such Code in pre-
venting the shifting of income outside the United States,
(2) whether any deficiencies of such provisions place United
States-based businesses at a competitive disadvantage relative
to foreign-based businesses,
(3) the impact of earnings stripping activities on the United
States tax base,
(4) whether laws of foreign countries facilitate stripping
of earnings out of the United States, and
(5) whether changes to the earning stripping rules would
affect jobs in the United States.
H. R. 4520—103
(b) REPORT.—Not later than June 30, 2005, the Secretary shall
submit to the Congress a report of the study conducted under
this section, including specific recommendations as to how to
improve the provisions of such Code applicable to earnings strip-
ping.
TITLE V—DEDUCTION OF STATE AND
LOCAL GENERAL SALES TAXES
SEC. 501. DEDUCTION OF STATE AND LOCAL GENERAL SALES TAXES
IN LIEU OF STATE AND LOCAL INCOME TAXES.
(a) IN GENERAL.—Subsection (b) of section 164 (relating to
definitions and special rules) is amended by adding at the end
the following:
‘‘(5) GENERAL SALES TAXES.—For purposes of subsection
(a)—
‘‘(A) ELECTION
TO
DEDUCT
STATE
AND
LOCAL
SALES
TAXES IN LIEU OF STATE AND LOCAL INCOME TAXES.—
‘‘(i) IN GENERAL.—At the election of the taxpayer
for the taxable year, subsection (a) shall be applied—
‘‘(I) without regard to the reference to State
and local income taxes, and
‘‘(II) as if State and local general sales taxes
were referred to in a paragraph thereof.
‘‘(B) DEFINITION OF GENERAL SALES TAX.—The term
‘general sales tax’ means a tax imposed at one rate with
respect to the sale at retail of a broad range of classes
of items.
‘‘(C) SPECIAL RULES FOR FOOD, ETC.—In the case of
items of food, clothing, medical supplies, and motor
vehicles—
‘‘(i) the fact that the tax does not apply with respect
to some or all of such items shall not be taken into
account in determining whether the tax applies with
respect to a broad range of classes of items, and
‘‘(ii) the fact that the rate of tax applicable with
respect to some or all of such items is lower than
the general rate of tax shall not be taken into account
in determining whether the tax is imposed at one
rate.
‘‘(D) ITEMS TAXED AT DIFFERENT RATES.—Except in the
case of a lower rate of tax applicable with respect to an
item described in subparagraph (C), no deduction shall
be allowed under this paragraph for any general sales
tax imposed with respect to an item at a rate other than
the general rate of tax.
‘‘(E) COMPENSATING USE TAXES.—A compensating use
tax with respect to an item shall be treated as a general
sales tax. For purposes of the preceding sentence, the term
‘compensating use tax’ means, with respect to any item,
a tax which—
‘‘(i) is imposed on the use, storage, or consumption
of such item, and
‘‘(ii) is complementary to a general sales tax, but
only if a deduction is allowable under this paragraph
H. R. 4520—104
with respect to items sold at retail in the taxing juris-
diction which are similar to such item.
‘‘(F) SPECIAL RULE FOR MOTOR VEHICLES.—In the case
of motor vehicles, if the rate of tax exceeds the general
rate, such excess shall be disregarded and the general
rate shall be treated as the rate of tax.
‘‘(G) SEPARATELY STATED GENERAL SALES TAXES.—If the
amount of any general sales tax is separately stated, then,
to the extent that the amount so stated is paid by the
consumer (other than in connection with the consumer’s
trade or business) to the seller, such amount shall be
treated as a tax imposed on, and paid by, such consumer.
‘‘(H) AMOUNT
OF
DEDUCTION
MAY
BE
DETERMINED
UNDER TABLES.—
‘‘(i) IN GENERAL.—At the election of the taxpayer
for the taxable year, the amount of the deduction
allowed under this paragraph for such year shall be—
‘‘(I) the amount determined under this para-
graph (without regard to this subparagraph) with
respect to motor vehicles, boats, and other items
specified by the Secretary, and
‘‘(II) the amount determined under tables pre-
scribed by the Secretary with respect to items
to which subclause (I) does not apply.
‘‘(ii) REQUIREMENTS FOR TABLES.—The tables pre-
scribed under clause (i)—
‘‘(I) shall reflect the provisions of this para-
graph,
‘‘(II) shall be based on the average consump-
tion by taxpayers on a State-by-State basis (as
determined by the Secretary) of items to which
clause (i)(I) does not apply, taking into account
filing status, number of dependents, adjusted gross
income, and rates of State and local general sales
taxation, and
‘‘(III) need only be determined with respect
to adjusted gross incomes up to the applicable
amount (as determined under section 68(b)).
‘‘(I) APPLICATION OF PARAGRAPH.—This paragraph shall
apply to taxable years beginning after December 31, 2003,
and before January 1, 2006.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2003.
TITLE VI—FAIR AND EQUITABLE
TOBACCO REFORM
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Fair and Equitable Tobacco
Reform Act of 2004’’.
H. R. 4520—105
Subtitle A—Termination of Federal To-
bacco Quota and Price Support Pro-
grams
SEC. 611. TERMINATION OF TOBACCO QUOTA PROGRAM AND RELATED
PROVISIONS.
(a) MARKETING QUOTAS.—Part I of subtitle B of title III of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.)
is repealed.
(b) TOBACCO INSPECTIONS.—Section 213 of the Tobacco Adjust-
ment Act of 1983 (7 U.S.C. 511r) is repealed.
(c) TOBACCO CONTROL.—The Act of April 25, 1936 (commonly
known as the Tobacco Control Act; 7 U.S.C. 515 et seq.), is repealed.
(d) PROCESSING TAX.—Section 9(b) of the Agricultural Adjust-
ment Act (7 U.S.C. 609(b)), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is amended—
(1) in paragraph (2), by striking ‘‘tobacco,’’; and
(2) in paragraph (6)(B)(i), by striking ‘‘, or, in the case
of tobacco, is less than the fair exchange value by not more
than 10 per centum,’’.
(e) DECLARATION
OF POLICY.—Section 2 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1282) is amended by striking
‘‘tobacco,’’.
(f) DEFINITIONS.—Section 301(b) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1301(b)) is amended—
(1) in paragraph (3)—
(A) by striking subparagraph (C); and
(B) by redesignating subparagraph (D) as subpara-
graph (C);
(2) in paragraph (6)(A), by striking ‘‘tobacco,’’;
(3) in paragraph (10)—
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as subpara-
graph (B);
(4) in paragraph (11)(B), by striking ‘‘and tobacco’’;
(5) in paragraph (12), by striking ‘‘tobacco,’’;
(6) in paragraph (14)—
(A) in subparagraph (A), by striking ‘‘(A)’’; and
(B) by striking subparagraphs (B), (C), and (D);
(7) by striking paragraph (15);
(8) in paragraph (16)—
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as subpara-
graph (B);
(9) by striking paragraph (17); and
(10) by redesignating paragraph (16) as paragraph (15).
(g) PARITY PAYMENTS.—Section 303 of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1303) is amended in the first sentence
by striking ‘‘rice, or tobacco,’’ and inserting ‘‘or rice,’’.
(h) ADMINISTRATIVE PROVISIONS.—Section 361 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1361) is amended by striking
‘‘tobacco,’’.
(i) ADJUSTMENT OF QUOTAS.—Section 371 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1371) is amended—
H. R. 4520—106
(1) in the first sentence of subsection (a), by striking ‘‘rice,
or tobacco’’ and inserting ‘‘or rice’’; and
(2) in the first sentence of subsection (b), by striking ‘‘rice,
or tobacco’’ and inserting ‘‘or rice’’.
(j) REPORTS AND RECORDS.—Section 373 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1373) is amended—
(1) by striking ‘‘rice, or tobacco’’ each place it appears
in subsections (a) and (b) and inserting ‘‘or rice’’; and
(2) in subsection (a)—
(A) in the first sentence, by striking ‘‘all persons
engaged in the business of redrying, prizing, or stemming
tobacco for producers,’’; and
(B) in the last sentence, by striking ‘‘$500;’’ and all
that follows through the period at the end of the sentence
and inserting ‘‘$500.’’.
(k) REGULATIONS.—Section 375 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1375) is amended—
(1) in subsection (a), by striking ‘‘peanuts, or tobacco’’ and
inserting ‘‘or peanuts’’; and
(2) by striking subsection (c).
(l) EMINENT DOMAIN.—Section 378 of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1378) is amended—
(1) in the first sentence of subsection (c), by striking ‘‘cotton,
and tobacco’’ and inserting ‘‘and cotton’’; and
(2) by striking subsections (d), (e), and (f).
(m) BURLEY TOBACCO FARM RECONSTITUTION.—Section 379 of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1379) is
amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)’’; and
(B) in paragraph (6), by striking ‘‘, but this clause
(6) shall not be applicable in the case of burley tobacco’’;
and
(2) by striking subsections (b) and (c).
(n) ACREAGE-POUNDAGE QUOTAS.—Section 4 of the Act of April
16, 1955 (Public Law 89–12; 7 U.S.C. 1314c note), is repealed.
(o) BURLEY TOBACCO ACREAGE ALLOTMENTS.—The Act of July
12, 1952 (7 U.S.C. 1315), is repealed.
(p) TRANSFER OF ALLOTMENTS.—Section 703 of the Food and
Agriculture Act of 1965 (7 U.S.C. 1316) is repealed.
(q) 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’’.
(r) TOBACCO FIELD MEASUREMENT.—Section 1112 of the Omni-
bus Budget Reconciliation Act of 1987 (Public Law 100–203; 101
Stat. 1330-8) is amended by striking subsection (c).
(s) BURLEY TOBACCO IMPORT REVIEW.—Section 3 of Public Law
98–59 (7 U.S.C. 625) is repealed.
SEC. 612. TERMINATION OF TOBACCO PRICE SUPPORT PROGRAM AND
RELATED PROVISIONS.
(a) TERMINATION OF TOBACCO PRICE SUPPORT AND NO NET
COST PROVISIONS.—Sections 106, 106A, and 106B of the Agricul-
tural Act of 1949 (7 U.S.C. 1445, 1445–1, 1445–2) are repealed.
(b) PARITY PRICE SUPPORT.—Section 101 of the Agricultural
Act of 1949 (7 U.S.C. 1441) is amended—