(b) COMMODITY HANDLING ORDERS.—Section 8c(2) 
of the Agricultural Adjustment Act (7 U.S.C. 608c(2)), 
reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended by striking ‘‘to-
bacco,’’. 
(c) PROCESSING TAX.—Section 9(b) of the Agricul-
tural Adjustment 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,’’. 
(d) BURLEY TOBACCO IMPORT REVIEW.—Section 3 
of Public Law 98–59 (7 U.S.C. 625) is repealed. 
(e) DECLARATION OF POLICY.—Section 2 of the Ag-
ricultural 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 
subparagraph (C);
(2) in paragraph (6)(A), by striking ‘‘tobacco,’’; 
(3) in paragraph (7), by striking the following: 
‘‘Tobacco (flue-cured), July 1-June 30; 
Tobacco (other than flue-cured), October 1-Sep-
tember 30);’’
(4) in paragraph (10)—
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B); 
(5) in paragraph (11)(B), by striking ‘‘and to-
bacco’’; 
(6) in paragraph (12), by striking ‘‘tobacco,’’; 
(7) in paragraph (14)—
(A) by striking ‘‘(A)’’ in subparagraph (A); 
and 
(B) by striking subparagraphs (B), (C), 
and (D); 
(8) by striking paragraph (15); 
(9) in paragraph (16)—
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B); 
(10) by striking paragraph (17); and 
(11) by redesignating paragraph (16) as para-
graph (15).
(g) PARITY PAYMENTS.—Section 303 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1303) is amended 
in the first sentence by striking ‘‘rice, or tobacco’’ and 
inserting ‘‘or rice’’. 
(h) 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 is repealed. 
(i) ADMINISTRATIVE PROVISIONS.—Section 361 of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) 
is amended by striking ‘‘tobacco,’’. 
(j) ADJUSTMENT OF QUOTAS.—Section 371 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1371) is 
amended—
(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’’. 
(k) REPORTS AND RECORDS.—Section 373 of the Ag-
ricultural 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.’’. 
(l) REGULATIONS.—Section 375(a) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1375(a)) is 
amended by striking ‘‘peanuts, or tobacco’’ and inserting 
‘‘or peanuts’’. 
(m) EMINENT DOMAIN.—Section 378 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1378) is amend-
ed—
(1) in the first sentence of subsection (c) by 
striking ‘‘and tobacco’’ and inserting ‘‘cotton’’; and 
(2) by striking subsections (d), (e), and (f). 
(n) 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). 
(o) ACREAGE-POUNDAGE QUOTAS.—Section 4 of the 
Act of April 16, 1955 (Public Law 89–12; 7 U.S.C. 1314c 
note), is repealed. 
(p) BURLEY TOBACCO ACREAGE ALLOTMENTS.—
The Act of July 12, 1952 (7 U.S.C. 1315), is repealed. 
(q) TRANSFER OF ALLOTMENTS.—Section 703 of the 
Food and Agriculture Act of 1965 (7 U.S.C. 1316) is re-
pealed. 
(r) 
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’’. 
(s) TOBACCO FIELD MEASUREMENT.—Section 1112 
of the Omnibus Budget Reconciliation Act of 1987 (Public 
Law 100–203) is amended by striking subsection (c). 
(t) LIABILITY.—The amendments made by this sec-
tion shall not affect the liability of any person under any 
provision of law in effect before the amendments take ef-
fect as provided under subsection (u). 
SEC. 308. EFFECTIVE DATE. 
This title and the amendments made by this title 
shall apply with respect to the 2003 and subsequent to-
bacco crops.
TITLE IV—TOBACCO ADVISORY 
BOARD 
SEC. 401. ESTABLISHMENT AND DUTIES OF TOBACCO ADVI-
SORY BOARD. 
(a) ESTABLISHMENT.—The Secretary of Agriculture 
shall establish a permanent advisory board in the Depart-
ment of Agriculture to be known as the Tobacco Advisory 
Board. 
(b) MEMBERS.—The Tobacco Advisory Board shall 
consist of 12 appointed by the Secretary of Agriculture 
as follows: 
(1) Three licensed tobacco producers of Flue-
cured tobacco. 
(2) Three licensed tobacco producers of Burley 
tobacco. 
(3) One licensed tobacco producer of dark-type 
tobacco. 
(4) One representative of United States ciga-
rette manufacturers. 
(5) One representative of United States moist 
snuff manufacturers. 
(6) One dealer. 
(7) One representative of Flue-cured tobacco 
marketing facilities.
(8) One representative of Burley tobacco mar-
keting facilities. 
(c) NON-VOTING MEMBERS.—The Tobacco Advisory 
Board shall also have the following non-voting members: 
(1) The Secretary of Agriculture, or an officer 
or employee of the Department of Agriculture. 
(2) A tobacco analyst of the Department of Ag-
riculture, appointed by the Secretary of Agriculture. 
(3) The United States Trade Representative, or 
the designee of the United States Trade Representa-
tive. 
(4) One representative from a college or univer-
sity in a predominately Flue-cured tobacco pro-
ducing State. 
(5) One representative from a college or univer-
sity in a predominately Burley tobacco producing 
State. 
(d) DUTIES.—The Tobacco Advisory Board shall be 
responsible for—
(1) making recommendations for modifications 
of the tobacco price support program under section 
106 of the Agriculture Act of 1949;
(2) making recommendations for modifications 
of the tobacco production license program under title 
III;
(3) determining adequate reserve stock levels 
for each type of tobacco; 
(4) conducting oversight regarding tobacco mar-
keting issues, such as opening sales dates, marketing 
regulations, and grading fees; and 
(5) making recommendations regarding a sim-
plification and reform of the grading system for to-
bacco, which the Secretary of Agriculture is author-
ized to implement.
TITLE V—ASSISTANCE TO TO-
BACCO-DEPENDENT COMMU-
NITIES 
SEC. 501. CENTER FOR TOBACCO-DEPENDENT COMMU-
NITIES. 
(a) FINDINGS.—The Congress finds the following: 
(1) The economies of many local communities 
are dependent on tobacco production. 
(2) Many tobacco-producing communities are 
facing significant challenges in developing non-to-
bacco income, and remain therefore quite dependent 
on tobacco and vulnerable to changes in the tobacco-
growing industry. 
(3) Greater analysis and study is needed of eco-
nomic conditions in these communities in order to 
gain critical information, including identification of
the interconnections among various tobacco-related 
activities, the degree to which the economic base of 
these communities is diversified, and the extent to 
which these communities are dependent on other de-
clining economic sectors. 
(b) CORPORATION ESTABLISHED.—There is author-
ized to be established a nonprofit corporation, to be known 
as the ‘‘Center for Tobacco-Dependent Communities’’, 
which will not be an agency or establishment of the United 
States Government. The Center shall be subject to the 
provisions of this section, and (to the extent consistent 
with this section) to the laws and regulations applicable 
to nonprofit corporations in the State in which the cor-
poration is established. 
(c) BOARD OF DIRECTORS.—
(1) The Center shall have a Board of Directors 
consisting of 7 members. Six of the members of the 
Board shall be appointed by the President, by and 
with the advice and consent of the Senate, and such 
members shall appoint the Center’s Executive Direc-
tor, who shall also be a member of the Board. No 
more than 3 of the 6 members appointed by the 
President may be members of the same political 
party.
(2) The 6 members of the Board appointed by 
the President shall be citizens of the United States 
who have knowledge and experience regarding the 
matters for which the Center is responsible, and who 
are eminent in issues related to rural development 
(including small-crop agriculture; entrepreneurial ac-
tivity; and industrial, small business and community 
development). 
(3) The members of the initial Board of Direc-
tors shall serve as incorporators and shall take what-
ever actions are necessary to establish the Center. 
(4) The term of office of each member of the 
Board appointed by the President shall be 4 years, 
except that of the members initially so appointed, 3 
members shall serve for a 2-year term. Any member 
whose term has expired may serve until such mem-
ber’s successor has taken office, or until the end of 
the calendar year in which such member’s term has 
expired, whichever is earlier. Any member appointed 
to fill a vacancy occurring prior to the expiration of 
the term for which such member’s predecessor was 
appointed shall be appointed for the remainder of 
such term. No member of the Board shall be eligible 
to serve in excess of 2 consecutive full terms.
(5) Any vacancy in the Board shall not affect 
its power, but shall be filled in the manner con-
sistent with this section. 
(6) Members of the Board shall attend not less 
than 50 percent of all duly convened meetings of the 
Board in any calendar year. A member who fails to 
meet the requirement of the preceding sentence shall 
forfeit membership, and the President shall appoint 
a new member to fill such vacancy not later than 30 
days after such vacancy is determined by the Chair-
man of the Board. 
(7) Members of the Board shall annually elect 
1 of their members to be Chair and elect 1 or more 
of their members as a Vice Chair or Chairs. The 
members of the Board shall not, by reason of such 
membership, be officers or employees of the United 
States. Members of the Board shall, while attending 
meetings of the Board or while engaged in duties re-
lated to such meetings or other activities of the 
Board pursuant to this section, be entitled to receive 
compensation at the rate of $150 per day, including 
traveltime. No Board member shall receive com-
pensation of more than $10,000 in any fiscal year. 
While away from their homes or regular places of
business, Board members shall be allowed travel and 
actual, reasonable, and necessary expenses. 
(8) All meetings of the Board, including any 
committee of the Board, shall be open to the public. 
(d) OFFICERS AND EMPLOYEES.—
(1) The Center shall have a President, and such 
other officers as may be named and appointed by 
the Board for terms and at rates of compensation 
fixed by the Board. No officer or employee of the 
Corporation may be compensated by the Corporation 
at an annual rate of pay which exceeds the rate of 
basic pay in effect from time to time for level I of 
the Executive Schedule under section 5312 of title 
5, United States Code. No individual other than a 
citizen of the United States may be an officer of the 
Center. No officer of the Center, other than the 
Chair or a Vice Chair, may receive any salary or 
other compensation (except for compensation for 
services on boards of directors of other organizations 
that do not receive funds from the Center, on com-
mittees of such boards, and in similar activities for 
such organizations) from any sources other than the 
Center for services rendered during the period of his 
or her employment by the Center. Service by any of-
ficer on boards of directors of other organizations,
on committees of such boards, and in similar activi-
ties for such organizations shall be subject to annual 
advance approval by the Board and subject to the 
provisions of the Center’s Statement of Ethical Con-
duct. All officers shall serve at the pleasure of the 
Board. 
(2) Except as provided in subsection (c)(1), no 
political test or qualification shall be used in select-
ing, appointing, promoting, or taking other per-
sonnel actions with respect to officers, agents, and 
employees of the Center. 
(e) NONPROFIT AND NONPOLITICAL NATURE OF THE 
CENTER.—
(1) The Center shall have no power to issue any 
shares of stock, or to declare or pay any dividends. 
(2) No part of the income or assets of the Cen-
ter shall inure to the benefit of any director, officer, 
employee, or any other individual except as salary or 
reasonable compensation for services. 
(3) The Center may not contribute to or other-
wise support any political party or candidate for 
elective public office. 
(f) PURPOSES AND ACTIVITIES OF THE CENTER.—
(1) In order to achieve the objectives and to 
carry out the purposes of this section, the Center
shall provide economic and community development 
assistance for tobacco communities to assist them in 
making the transition from tobacco-based economies. 
The primary activities of the Center shall be agricul-
tural and entrepreneurial, and shall include outreach 
and education to tobacco quota owners, growers and 
others (including small communities) with limited 
ability to obtain access to current economic develop-
ment resources. In particular, the Center shall pro-
vide assistance to tobacco-producing communities 
identified by the Economic Research Service within 
the Department, with emphasis on those commu-
nities that are especially dependent on tobacco pro-
duction for the generation of revenue. 
(2) The Center is authorized to—
(A) provide communities and producers 
with targeted technical assistance; 
(B) convene meetings and conduct work-
shops and conferences; 
(C) serve as a clearinghouse for exchange 
of information regarding best industry prac-
tices; 
(D) provide research and policy develop-
ment activities;
(E) serve as an advocate for communities 
making the transition from tobacco-based 
economies; 
(F) make grants to individuals or entities, 
including challenge grants, community mini-
grants, technical assistance grants and grants 
for pilot projects and demonstrations; 
(G) hire or accept the voluntary services of 
consultants, experts, advisory boards, and pan-
els to aid the Center in carrying out the pur-
poses of this section; 
(H) accept bequests, donations, and other 
forms of assistance; and 
(I) take such other actions as may be nec-
essary to accomplish the purposes set forth in 
this section. 
(3) Nothing contained in paragraph (2) shall be 
construed to commit the Federal Government to pro-
vide any sums for the payment of any obligation of 
the Center. 
(4) To carry out the foregoing purposes and en-
gage in the foregoing activities, the Center shall 
have the usual powers conferred upon a nonprofit 
corporation by applicable laws and regulations of the 
State in which the corporation is established, except
that the Center is prohibited from owning or oper-
ating any tobacco-related interest. 
(g) ANNUAL REPORT.—
(1) The Center shall submit an annual report 
for the preceding fiscal year ending September 30 to 
the President for transmittal to the Congress on or 
before the 15th day of May of each year. The report 
shall include—
(A) a comprehensive and detailed report of 
the Center’s operations, activities, financial con-
dition, and accomplishments under this section 
and such recommendations as the Center con-
siders appropriate; and 
(B) a listing of each organization that re-
ceives a grant from the Center, the purpose of 
such grant, and the amount of each such grant. 
(2) The officers and directors of the Center 
shall be available to testify before appropriate com-
mittees of the Congress with respect to such report, 
the report of any audit made by the Comptroller 
General of the United States pursuant to this sec-
tion, or any other matter which such committees 
may determine.
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Agri-
culture, from funds derived from the user fees imposed 
under section 104, $5,000,000 for each of the fiscal years 
2003 through 2013 to provide funds for the operations 
and activities of the Center. Funds so appropriated shall 
remain available until expended. The Corporation shall es-
tablish an annual budget for use in allocating amounts 
made available to the Center under this section. 
(i) FINANCIAL MANAGEMENT AND RECORDS.—
(1)(A) The accounts of the Center shall be au-
dited annually in accordance with generally accepted 
auditing standards by independent certified public 
accountants or independent licensed public account-
ants certified or licensed by a regulatory authority of 
a State or other political subdivision of the United 
States. The audits shall be conducted at the place or 
places where the accounts of the Center are normally 
kept. All books, accounts, financial records, reports, 
files, and all other papers, things, or property be-
longing to or in use by the Center and necessary to 
facilitate the audits shall be made available to the 
person or persons conducting the audits; and full fa-
cilities for verifying transactions with the balances 
or securities held by depositories, fiscal agents and 
custodians shall be afforded to such person or per-
sons.
(B) The report of each such independent audit 
shall be included in the annual report required by 
this subsection. The audit report shall set forth the 
scope of the audit and include such statements as 
are necessary to present fairly the Center’s assets 
and liabilities, surplus or deficit, with an analysis of 
the changes therein during the year, supplemented 
in reasonable detail by a statement of the Center’s 
expenses during the year, and a statement of the 
sources and application of funds, together with the 
independent auditor’s opinion of such statements. 
(2)(A) The financial transactions of the Center 
for any fiscal year during which Federal funds are 
available to finance any portion of its operations 
may be audited by the General Accounting Office in 
accordance with the principles and procedures appli-
cable to commercial corporate transactions and 
under such rules and regulations as may be pre-
scribed by the Comptroller General of the United 
States. Any such audit shall be conducted at the 
place or places where accounts of the Center are 
normally kept. The representative of the General Ac-
counting Office shall have access to all books, ac-
counts, records, reports, files, and all other papers, 
things, or property belonging to or in use by the
Center pertaining to its financial transactions and 
necessary to facilitate the audit, and they shall be 
afforded full facilities for verifying transactions with 
the balances or securities held by depositories, fiscal 
agents, and custodians. All such books, accounts, 
records, reports, files, papers and property of the 
Center shall remain in possession and custody of the 
Center. 
(B) A report of each such audit shall be made 
by the Comptroller General to the Congress. The re-
port to the Congress shall contain such comments 
and information as the Comptroller General may 
deem necessary to inform Congress of the financial 
operations and condition of the Center, together 
with such recommendations with respect thereto as 
the Comptroller General may consider advisable. The 
report shall also show specifically any program, ex-
penditure, or other financial transaction or under-
taking observed in the course of the audit, which, in 
the opinion of the Comptroller General, has been 
carried on or made without authority of law. A copy 
of each report shall be furnished to the President, to 
the Secretary, and to the Center at the time sub-
mitted to the Congress.
(3)(A) Not later than 1 year after the date of 
enactment of this Act, the Center, in consultation 
with the Comptroller General, and as appropriate 
with others, shall develop accounting principles 
which shall be used uniformly by all individuals and 
entities receiving funds under this section, taking 
into account organizational differences among var-
ious categories of such entities. Such principles shall 
be designed to account fully for all funds received 
and expended by such entities under this section. 
(B) Each individual and entity receiving funds 
under this section shall be required—
(i) to keep its books, records, and accounts 
in such form as may be required by the Center; 
(ii)(I) to undergo a biennial audit by inde-
pendent certified public accountants or inde-
pendent licensed public accountants certified or 
licensed by a regulatory authority of a State, 
which audit shall be in accordance with auditing 
standards developed by the Center, in consulta-
tion with the Comptroller General; or 
(II) to submit a financial statement in lieu 
of the audit required by subclause (I) if the 
Center determines that the cost burden of such
audit on such entity is excessive in light of the 
financial condition of such entity; and 
(iii) to furnish biennially to the Center a 
copy of the audit report required pursuant to 
clause (ii), as well as such other information re-
garding finances (including an annual financial 
report) as the Center may require. 
(C) Any recipient of assistance by grant 
under this section shall keep such records as 
may be reasonably necessary to disclose fully 
the amount and the disposition by such recipi-
ent of such assistance, the total cost of the 
project or undertaking in connection with which 
such assistance is given or used, and the 
amount and nature of that portion of the cost 
of the project or undertaking supplied by other 
sources, and such other records as will facilitate 
an effective audit. 
(D) The Center or any of its duly author-
ized representatives shall have access to any 
books, documents, papers, and records of any 
recipient of assistance for the purpose of audit-
ing and examining all funds received or ex-
pended by the recipient under this section. The 
Comptroller General of the United States or
any duly authorized representatives of the 
Comptroller General also shall have access to 
such books, documents, papers, and records for 
the purpose of auditing and examining all funds 
received or expended under this section during 
any fiscal year for which Federal funds are 
available to the Center. 
(4) The Center shall maintain the information 
described in paragraph (3) at its offices for public 
inspection and copying for at least 3 years, accord-
ing to such reasonable guidelines as the Center may 
issue. This public file shall be updated regularly.
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