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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 with
respect to items sold at retail in the taxing
jurisdiction 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 paragraph (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 prescribed by the
Secretary with respect to items to which subclause
(I) does not apply.
"(ii)
REQUIREMENTS FOR TABLES. --The tables prescribed
under clause (i) --
"(I)
shall reflect the provisions of this paragraph,
"(II)
shall be based on the average consumption 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".
Subtitle A --Termination of Federal Tobacco Quota
and Price Support Programs
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 Adjustment 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 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,".
(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
subparagraph (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
subparagraph (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
subparagraph (B);
(9) by striking paragraph (17); and
(10) by redesignating paragraph (16) as paragraph
(15).
(g) PARITY PAYMENTS. --Section 303 of the
Agricultural 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) ADMINISTRATIVE PROVISIONS. --Section 361 of the
Agricultural 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 --
(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 Adjustment 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
Omnibus 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
Agricultural 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
--
(1) in the first sentence of subsection (a), by
striking "tobacco (except as otherwise provided
herein), 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
(4) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(c) DEFINITION OF BASIC AGRICULTURAL COMMODITY.
--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 tobacco)" after
"agricultural commodities" each place it
appears.
SEC
. 613. CONFORMING AMENDMENTS.
Section 320B(c)(1) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1314h(c)(1)) is amended --
(1) by inserting "(A)" after
"(1)";
(2) by striking "by" at the end and
inserting "or"; and
(3) by adding at the end the following:
"(B) in the case of the 2004 marketing year,
the price support rate for the kind of tobacco
involved in effect under section 106 of the
Agricultural Act of 1949 (7 U.S.C. 1445) at the time
of the violation; by".
SEC
. 614. CONTINUATION OF LIABILITY FOR 2004
AND
EARLIER CROP YEARS.
The amendments made by this subtitle shall not
affect the liability of any person under any
provision of law so amended with respect to the 2004
or an earlier crop of each kind of tobacco.
Subtitle B --Transitional Payments to Tobacco
Quota Holders and Producers of Tobacco
SEC
. 621. DEFINITIONS.
In this subtitle and subtitle C:
(1) AGRICULTURAL ACT OF 1949. --The term
"Agricultural Act of 1949" means the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), as
in effect on the day before the date of the
enactment of this title.
(2) AGRICULTURAL ADJUSTMENT ACT OF 1938. --The term
"Agricultural Adjustment Act of 1938"
means the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.), as in effect on the day before
the date of the enactment of this title.
(3) CONSIDERED PLANTED. --The term "considered
planted" means tobacco that was planted, but
failed to be produced as a result of a natural
disaster, as determined by the Secretary.
(4) CONTRACT. --The term "contract" means
a contract entered into under section 622 or 623.
(5) CONTRACT PAYMENT. --The term "contract
payment" means a payment made under section 622
or 623 pursuant to a contract.
(6) PRODUCER OF QUOTA TOBACCO. --The term
"producer of quota tobacco" means an
owner, operator, landlord, tenant, or sharecropper
that shared in the risk of producing tobacco on a
farm where tobacco was produced or considered
planted pursuant to a tobacco farm poundage quota or
farm acreage allotment established under part I of
subtitle B of title
III
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1311 et seq.).
(7) QUOTA TOBACCO. --The term 'quota tobacco' means
a kind of tobacco that is subject to a farm
marketing quota or farm acreage allotment for the
2004 tobacco marketing year under a marketing quota
or allotment program established under part I of
subtitle B of title
III
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1311 et seq.).
(8) TOBACCO. --The term "tobacco" means
each of the following kinds of tobacco:
(A) Flue-cured tobacco, comprising types 11, 12, 13,
and 14.
(B) Fire-cured tobacco, comprising types 22 and 23.
(C) Dark air-cured tobacco, comprising types 35 and
36.
(D) Virginia sun-cured tobacco, comprising type 37.
(E) Virginia fire-cured tobacco, comprising type 21.
(F) Burley tobacco, comprising type 31.
(G) Cigar-filler and cigar-binder tobacco,
comprising types 42, 43, 44, 53, 54, and 55.
(9) TOBACCO QUOTA HOLDER. --The term "tobacco
quota holder" means a person that was an owner
of a farm, as of the date of enactment of this
title, for which a basic tobacco farm marketing
quota or farm acreage allotment for quota tobacco
was established for the 2004 tobacco marketing year.
(10) TOBACCO TRUST FUND. --The term "Tobacco
Trust Fund" means the Tobacco Trust Fund
established under section 626.
(11) SECRETARY. --The term "Secretary"
means the Secretary of Agriculture.
SEC
. 622. CONTRACT PAYMENTS TO TOBACCO QUOTA
HOLDERS.
(a) CONTRACT OFFERED. --The Secretary shall offer to
enter into a contract with each tobacco quota holder
under which the tobacco quota holder shall be
entitled to receive payments under this section in
exchange for the termination of tobacco marketing
quotas and related price support under the
amendments made by sections 611 and 612. The
contract payments shall constitute full and fair
consideration for the termination of such tobacco
marketing quotas and related price support.
(b) ELIGIBILITY. --To be eligible to enter into a
contract to receive a contract 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 is a
tobacco quota holder. The application shall be
submitted within such time, in such form, and in
such manner as the Secretary may require.
(c) BASE QUOTA LEVEL. --
(1) ESTABLISHMENT. --The Secretary shall establish a
base quota level applicable to each 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 quota for quota tobacco
established for the 2002 tobacco marketing year
under a marketing quota program established under
part I of subtitle B of title
III
of the Agriculture Adjustment Act of 1938 on the
farm owned by the tobacco quota holder.
(3) MARKETING QUOTAS OTHER THAN POUNDAGE QUOTAS.
--Subject to adjustment under subsection (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 quantity equal to the product obtained by
multiplying --
(A) the basic tobacco farm marketing quota or
allotment for the 2002 marketing year established by
the Secretary for quota tobacco owned by the tobacco
quota holder; by
(B) the average production yield, per acre, for the
period covering the 2001, 2002, and 2003 crop years
for that kind of tobacco in the county in which the
quota tobacco is located.
(d) TREATMENT OF CERTAIN CONTRACTS
AND
AGREEMENTS. --
(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 title, and the parties to the sale
are unable to agree to the disposition of
eligibility for contract payments, the Secretary,
taking into account any transfer of quota that has
been agreed to, shall provide for the equitable
division of the contract payments among the parties
by adjusting the determination of who is the tobacco
quota holder with respect to particular pounds or
allotment 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 title, an agreement for the
permanent transfer of quota, but that the transfer
was not completed by that date, the Secretary shall
consider 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) CONTRACT PAYMENTS. --
(1) CALCULATION OF TOTAL PAYMENT AMOUNT. --The total
amount of contract payments to which an eligible
tobacco quota holder is entitled under this section,
with respect to a kind of tobacco, shall be equal to
the product obtained by multiplying --
(A) $7.00 per pound; by
(B) the base quota level of the tobacco quota holder
determined under subsection (c) with respect to that
kind of tobacco.
(2) ANNUAL PAYMENT. --During each of fiscal years
2005 through 2014, the Secretary shall make a
contract payment under this section to each eligible
tobacco quota holder, with respect to a kind of
tobacco, in an amount equal to 1/10 of the amount
determined under paragraph (1) for the tobacco quota
holder for that kind of tobacco.
(f) DEATH OF TOBACCO QUOTA HOLDER. --If a tobacco
quota holder who is entitled to contract 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.
SEC
. 623. CONTRACT PAYMENTS FOR PRODUCERS OF QUOTA
TOBACCO.
(a) CONTRACT OFFERED. --The Secretary shall offer to
enter into a contract with each producer of quota
tobacco under which the producer of quota tobacco
shall be entitled to receive payments under this
section in exchange for the termination of tobacco
marketing quotas and related price support under the
amendments made by sections 611 and 612. The
contract payments shall constitute full and fair
consideration for the termination of such tobacco
marketing quotas and related price support.
(b) ELIGIBILITY. --
(1) APPLICATION
AND
DETERMINATION. --To be eligible to enter into a
contract to receive a contract 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 is a
producer of quota tobacco. The application shall be
submitted within such time, in such form, and in
such manner as the Secretary may require.
(2) EFFECT OF MULTIPLE PRODUCERS FOR SAME QUOTA
TOBACCO. --If, on the basis of the applications
submitted under paragraph (1) or other information,
the Secretary determines that two or more persons
are a producer of the same quota tobacco, the
Secretary shall provide for an equitable
distribution among the persons of the contract
payments made under this section with respect to
that quota tobacco, based on relative share of such
persons in the risk of producing the quota tobacco
and such other factors as the Secretary considers
appropriate.
(c) BASE QUOTA LEVEL. --
(1) ESTABLISHMENT. --The Secretary shall establish a
base quota level applicable to each producer of
quota tobacco, as determined under this subsection.
(2) FLUE-CURED
AND
BURLEY TOBACCO. --In the case of Fluecured tobacco
(types 11, 12, 13, and 14) and Burley tobacco (type
31), the base quota level for each producer of quota
tobacco shall be equal to the effective tobacco
marketing quota (irrespective of disaster lease and
transfers) under part I of subtitle B of title
III
of the Agriculture Adjustment Act of 1938 for the
2002 marketing year for quota tobacco produced on
the farm.
(3) OTHER KINDS OF TOBACCO. --In the case of each
kind of tobacco (other than tobacco covered by
paragraph (2)), for the purpose of calculating a
contract payment to a producer of quota tobacco, the
base quota level for the producer of quota tobacco
shall be the quantity obtained by multiplying --
(A) the basic tobacco farm acreage allotment for the
2002 marketing year established by the Secretary for
quota tobacco produced on the farm; by
(B) the average annual yield, per acre, of quota
tobacco produced on the farm for the period covering
the 2001, 2002, and 2003 crop years.
(d) CONTRACT PAYMENTS. --
(1) CALCULATION OF TOTAL PAYMENT AMOUNT. --Subject
to subsection (b)(2), the total amount of contract
payments to which an eligible producer of quota
tobacco is entitled under this section, with respect
to a kind of tobacco, shall be equal to the product
obtained by multiplying --
(A) subject to paragraph (2), $3.00 per pound; by
(B) the base quota level of the producer of quota
tobacco determined under subsection (c) with respect
to that kind of tobacco.
(2) ANNUAL PAYMENT. --During each of fiscal years
2005 through 2014, the Secretary shall make a
contract payment under this section to each eligible
producer of tobacco, with respect to a kind of
tobacco, in an amount equal to 1/10 of the amount
determined under paragraph (1) for the producer for
that kind of tobacco.
(3) VARIABLE PAYMENT RATES. --The rate for payments
to a producer of quota tobacco under paragraph
(1)(A) shall be equal to --
(A) in the case of a producer of quota tobacco that
produced quota tobacco marketed, or considered
planted, under a marketing quota in all three of the
2002, 2003, or 2004 tobacco marketing years, the
rate prescribed under paragraph (1)(A);
(B) in the case of a producer of quota tobacco that
produced quota tobacco marketed, or considered
planted, under a marketing quota in only two of
those tobacco marketing years, 2/3 of the rate
prescribed under paragraph (1)(A);
(C) in the case of a producer of quota tobacco that
produced quota tobacco marketed, or considered
planted, under a marketing quota in only one of
those tobacco marketing years, 1/3 of the rate
prescribed under paragraph (1)(A).
(e) DEATH OF TOBACCO PRODUCER. --If a producer of
quota tobacco who is entitled to contract payments
under this section dies and is survived by a spouse
or one or more dependents, the right to receive the
contract payments shall transfer to the surviving
spouse or, if there is no surviving spouse, to the
estate of the producer.
SEC
. 624. ADMINISTRATION.
(a) TIME FOR PAYMENT OF CONTRACT PAYMENTS.
--Contract payments required to be made for a fiscal
year shall be made by the Secretary as soon as
practicable.
(b) USE OF COUNTY COMMITTEES TO RESOLVE DISPUTES.
--Any dispute regarding the eligibility of a person
to enter into a contract or to receive contract
payments, and any dispute regarding the amount of a
contract payment, may be appealed to the county
committee established under section 8 of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h) for the county or other area in which the
farming operation of the person is located.
(c) ROLE OF NATIONAL APPEALS DIVISION. --Any adverse
determination of a county committee under subsection
(b) may be appealed to the National Appeals Division
established under subtitle H of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6991 et seq.).
(d) USE OF FINANCIAL INSTITUTIONS. --The Secretary
may use a financial institution to manage assets,
make contract payments, and otherwise carry out this
title.
(e) PAYMENT TO FINANCIAL INSTITUTIONS. --The
Secretary shall permit a tobacco quota holder or
producer of quota tobacco entitled to contract
payments to assign to a financial institution the
right to receive the contract payments. Upon
receiving notification of the assignment, the
Secretary shall make subsequent contract payments
for the tobacco quota holder or producer of quota
tobacco directly to the financial institution
designated by the tobacco quota holder or producer
of quota tobacco. The Secretary shall make
information available to tobacco quota holders and
producers of quota tobacco regarding their ability
to elect to have the Secretary make payments
directly to a financial institution under this
subsection so that they may obtain a lump sum or
other payment.
SEC
. 625. USE OF ASSESSMENTS AS SOURCE OF FUNDS FOR
PAYMENTS.
(a) DEFINITIONS. --In this section:
(1) BASE PERIOD. --The term "base period"
means the oneyear period ending the June 30 before
the beginning of a fiscal year.
(2) GROSS DOMESTIC VOLUME. --The term "gross
domestic volume" means the volume of tobacco
products --
(A) removed (as defined by section 5702 of the
Internal Revenue Code of 1986); and
(B) not exempt from tax under chapter 52 of the
Internal Revenue Code of 1986 at the time of their
removal under that chapter or the Harmonized Tariff
Schedule of the United States (19 U.S.C. 1202).
(3) MARKET SHARE. --The term "market
share" means the share of each manufacturer or
importer of a class of tobacco product (expressed as
a decimal to the fourth place) of the total volume
of domestic sales of the class of tobacco product
during the base period for a fiscal year for an
assessment under this section.
(b) QUARTERLY ASSESSMENTS. --
(1) IMPOSITION OF ASSESSMENT. --The Secretary,
acting through the Commodity Credit Corporation,
shall impose quarterly assessments during each of
fiscal years 2005 through 2014, calculated in
accordance with this section, on each tobacco
product manufacturer and tobacco product importer
that sells tobacco products in domestic commerce in
the United States during that fiscal year.
(2) AMOUNTS. --Beginning with the calendar quarter
ending on December 31 of each of fiscal years 2005
through 2014, the assessment payments over each
four-calendar quarter period shall be sufficient to
cover --
(A) the contract payments made under sections 622
and 623 during that period; and
(B) other expenditures from the Tobacco Trust Fund
made during the base quarter periods corresponding
to the four calendar quarters of that period.
(3) DEPOSIT. --Assessments collected under this
section shall be deposited in the Tobacco Trust
Fund.
(c) ASSESSMENTS FOR CLASSES OF TOBACCO PRODUCTS. --
(1) INITIAL ALLOCATION. --The percentage of the
total amount required by subsection (b) to be
assessed against, and paid by, the manufacturers and
importers of each class of tobacco product in fiscal
year 2005 shall be as follows:
(A) For cigarette manufacturers and importers,
96.331 percent.
(B) For cigar manufacturers and importers, 2.783
percent.
(C) For snuff manufacturers and importers, 0.539
percent.
(D) For roll-your-own tobacco manufacturers and
importers, 0.171 percent.
(E) For chewing tobacco manufacturers and importers,
0.111 percent.
(F) For pipe tobacco manufacturers and importers,
0.066 percent.
(2) SUBSEQUENT ALLOCATIONS. --For subsequent fiscal
years, the Secretary shall periodically adjust the
percentage of the total amount required under
subsection (b) to be assessed against, and paid by,
the manufacturers and importers of each class of
tobacco product specified in paragraph (1) to
reflect changes in the share of gross domestic
volume held by that class of tobacco product.
(3) EFFECT OF INSUFFICIENT AMOUNTS. --If the
Secretary determines that the assessment imposed
under subsection (b) will result in insufficient
amounts to carry out this subtitle during a fiscal
year, the Secretary shall assess such additional
amounts as the Secretary determines to be necessary
to carry out this subtitle during that fiscal year.
The additional amount shall be allocated to
manufacturers and importers of each class of tobacco
product specified in paragraph (1) in the same
manner and based on the same percentages applicable
under paragraph (1) or (2) for that fiscal year.
(d) NOTIFICATION
AND
TIMING OF ASSESSMENTS. --
(1) NOTIFICATION OF ASSESSMENTS. --The Secretary
shall provide each manufacturer or importer subject
to an assessment under subsection (b) with written
notice setting forth the amount to be assessed
against the manufacturer or importer for each
quarterly payment period. The notice for a quarterly
period shall be provided not later than 30 days
before the date payment is due under paragraph (3).
(2) CONTENT. --The notice shall include the
following information with respect to the quarterly
period used by the Secretary in calculating the
amount:
(A) The total combined assessment for all
manufacturers and importers of tobacco products.
(B) The total assessment with respect to the class
of tobacco products manufactured or imported by the
manufacturer or importer.
(C) Any adjustments to the percentage allocations
among the classes of tobacco products made pursuant
to paragraph (2) or (3) of subsection (c).
(D) The volume of gross sales of the applicable
class of tobacco product treated as made by the
manufacturer or importer for purposes of calculating
the manufacturer's or importer's market share under
subsection (f).
(E) The total volume of gross sales of the
applicable class of tobacco product that the
Secretary treated as made by all manufacturers and
importers for purposes of calculating the
manufacturer's or importer's market share under
subsection (f).
(F) The manufacturer's or importer's market share of
the applicable class of tobacco product, as
determined by the Secretary under subsection (f).
(G) The market share, as determined by the Secretary
under subsection (f), of each other manufacturer and
importer, for each applicable class of tobacco
product.
(3) TIMING OF ASSESSMENT PAYMENTS. --
(A) COLLECTION DATE. --Assessments shall be
collected at the end of each calendar year quarter,
except that the Secretary shall ensure that the
final assessment due under this section is collected
not later than September 30, 2014.
(B) BASE PERIOD QUARTER. --The assessment for a
calendar year quarter shall correspond to the base
period quarter that ended at the end of the
preceding calendar year quarter.
(e) ALLOCATION OF ASSESSMENT WITHIN EACH CLASS OF
TOBACCO PRODUCT. --
(1) PRO RATA BASIS. --The assessment for each class
of tobacco product specified in subsection (c)(1)
shall be allocated on a pro rata basis among
manufacturers and importers based on each
manufacturer's or importer's share of gross domestic
volume.
(2) LIMITATION. --No manufacturer or importer shall
be required to pay an assessment that is based on a
share that is in excess of the manufacturer's or
importer's share of domestic volume.
(f) ALLOCATION OF TOTAL ASSESSMENTS BY MARKET SHARE.
--The amount of the assessment for each class of
tobacco product specified in subsection (c)(1) to be
paid by each manufacturer or importer of that class
of tobacco product shall be determined for each
quarterly payment period by multiplying --
(1) the market share of the manufacturer or
importer, as calculated with respect to that payment
period, of the class of tobacco product; by
(2) the total amount of the assessment for that
quarterly payment period under subsection (c), for
the class of tobacco product.
(g) DETERMINATION OF VOLUME OF DOMESTIC SALES. --
(1) IN GENERAL. --The calculation of the volume of
domestic sales of a class of tobacco product by a
manufacturer or importer, and by all manufacturers
and importers as a group, shall be made by the
Secretary based on information provided by the
manufacturers and importers pursuant to subsection
(h), as well as any other relevant information
provided to or obtained by the Secretary.
(2) GROSS DOMESTIC VOLUME. --The volume of domestic
sales shall be calculated based on gross domestic
volume.
(3) MEASUREMENT. --For purposes of the calculations
under this subsection and the certifications under
subsection (h) by the Secretary, the volumes of
domestic sales shall be measured by --
(A) in the case of cigarettes and cigars, the number
of cigarettes and cigars; and
(B) in the case of the other classes of tobacco
products specified in subsection (c)(1), in terms of
number of pounds, or fraction thereof, of those
products.
(h) MEASUREMENT OF VOLUME OF DOMESTIC SALES. --
(1) SUBMISSION OF INFORMATION. --Each manufacturer
and importer of tobacco products shall submit to the
Secretary a certified copy of each of the returns or
forms described by paragraph (2) that are required
to be filed with a Federal agency on the same date
that those returns or forms are filed, or required
to be filed, with the agency.
(2) RETURNS
AND
FORMS. --The returns and forms described by this
paragraph are those returns and forms that relate to
--
(A) the removal of tobacco products into domestic
commerce (as defined by section 5702 of the Internal
Revenue Code of 1986); and
(B) the payment of the taxes imposed under charter
52 of the Internal Revenue Code of 1986, including
AFT Form 5000.24 and United States Customs Form 7501
under currently applicable regulations.
(3) EFFECT OF FAILURE TO PROVIDE REQUIRED
INFORMATION. --Any person that knowingly fails to
provide information required under this subsection
or that provides false information under this
subsection shall be subject to the penalties
described in section 1003 of title 18, United States
Code. The Secretary may also assess against the
person a civil penalty in an amount not to exceed
two percent of the value of the kind of tobacco
products manufactured or imported by the person
during the fiscal year in which the violation
occurred, as determined by the Secretary.
(i) CHALLENGE TO ASSESSMENT. --
(1) APPEAL TO SECRETARY. --A manufacturer or
importer subject to this section may contest an
assessment imposed on the manufacturer or importer
under this section by notifying the Secretary, not
later than 30 business days after receiving the
assessment notification required by subsection (d),
that the manufacturer or importer intends to contest
the assessment.
(2) INFORMATION. --Not later than 180 days after the
date of the enactment of this title, the Secretary
shall establish by regulation a procedure under
which a manufacturer or importer contesting an
assessment under this subsection may present
information to the Secretary to demonstrate that the
assessment applicable to the manufacturer or
importer is incorrect. In challenging the
assessment, the manufacturer or importer may use any
information that is available, including third party
data on industry or individual company sales
volumes.
(3) REVISION. --If a manufacturer or importer
establishes that the initial determination of the
amount of an assessment is incorrect, the Secretary
shall revise the amount of the assessment so that
the manufacturer or importer is required to pay only
the amount correctly determined.
(4) TIME FOR REVIEW. --Not later than 30 days after
receiving notice from a manufacturer or importer
under paragraph (1), the Secretary shall --
(A) decide whether the information provided to the
Secretary under paragraph (2), and any other
information that the Secretary determines is
appropriate, is sufficient to establish that the
original assessment was incorrect; and
(B) make any revisions necessary to ensure that each
manufacturer and importer pays only its correct pro
rata share of total gross domestic volume from all
sources.
(5) IMMEDIATE PAYMENT OF UNDISPUTED AMOUNTS. --The
regulations promulgated by the Secretary under
paragraph (2) shall provide for the immediate
payment by a manufacturer or importer challenging an
assessment of that portion of the assessment that is
not in dispute. The manufacturer and importer may
place into escrow, in accordance with such
regulations, only the portion of the assessment
being challenged in good faith pending final
determination of the claim.
(j) JUDICIAL REVIEW. --
(1) IN GENERAL. --Any manufacturer or importer
aggrieved by a determination of the Secretary with
respect to the amount of any assessment may seek
review of the determination in the United States
District Court for the District of Columbia or for
the district in which the manufacturer or importer
resides or has its principal place of business at
any time following exhaustion of the administrative
remedies available under subsection (i).
(2) TIME LIMITS. --Administrative remedies shall be
deemed exhausted if no decision by the Secretary is
made within the time limits established under
subsection (i)(4).
(3) EXCESSIVE ASSESSMENTS. --The court shall
restrain collection of the excessive portion of any
assessment or order a refund of excessive
assessments already paid, along with interest
calculated at the rate prescribed in section 3717 of
title 31, United States Code, if it finds that the
Secretary's determination is not supported by a
preponderance of the information available to the
Secretary.
(k) TERMINATION DATE. --The authority provided by
this section to impose assessments terminates on
September 30, 2014.
SEC
. 626. TOBACCO TRUST FUND.
(a) ESTABLISHMENT. --There is established in the
Commodity Credit Corporation a revolving trust fund,
to be known as the "Tobacco Trust Fund",
which shall be used in carrying out this subtitle.
The Tobacco Trust Fund shall consist of the
following:
(1) Assessments collected under section 625.
(2) Such amounts as are necessary from the Commodity
Credit Corporation.
(3) Any interest earned on investment of amounts in
the Tobacco Trust Fund under subsection (c).
(b) EXPENDITURES. --
(1) AUTHORIZED EXPENDITURES. --Subject to paragraph
(2), and notwithstanding any other provision of law,
the Secretary shall use amounts in the Tobacco Trust
Fund, in such amounts as the Secretary determines
are necessary --
(A) to make payments under sections 622 and 623;
(B) to provide reimbursement under section 641(c);
(C) to reimburse the Commodity Credit Corporation
for costs incurred by the Commodity Credit
Corporation under paragraph (2); and
(D) to make payments to financial institutions to
satisfy contractual obligations under section 622 or
623.
(2) EXPENDITURES BY COMMODITY CREDIT CORPORATION.
--Notwithstanding any other provision of law, the
Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to
make payments described in paragraph (1). Not later
than January 1, 2015, the Secretary shall use
amounts in the Tobacco Trust Fund to fully
reimburse, with interest, the Commodity Credit
Corporation for all funds of the Commodity Credit
Corporation expended under the authority of this
paragraph. Administrative costs incurred by the
Secretary or the Commodity Credit Corporation to
carry out this title may not be paid using amounts
in the Tobacco Trust Fund.
(c) INVESTMENT OF AMOUNTS. --
(1) IN GENERAL. --The Commodity Credit Corporation
shall invest such portion of the amounts in the
Tobacco Trust Fund as are not, in the judgment of
the Commodity Credit Corporation, required to meet
current expenditures.
(2) INTEREST-BEARING OBLIGATIONS. --Investments may
be made only in interest-bearing obligations of the
United States.
(3) ACQUISITION OF OBLIGATIONS. --For the purpose of
investments under paragraph (1), obligations may be
acquired --
(A) on original issue at the issue price; or
(B) by purchase of outstanding obligations at the
market price.
(4) SALE OF OBLIGATIONS. --Any obligation acquired
by the Tobacco Trust Fund may be sold by the
Commodity Credit Corporation at the market price.
(5) CREDITS TO FUND. --The interest on, and the
proceeds from the sale or redemption of, any
obligations held in the Tobacco Trust Fund shall be
credited to and form a part of the Fund.
SEC
. 627. LIMITATION ON TOTAL EXPENDITURES.
The total amount expended by the Secretary from the
Tobacco Trust Fund to make payments under sections
622 and 623 and for the other authorized purposes of
the Fund shall not exceed $10,140,000,000.
Subtitle
C --Implementation and Transition
SEC
. 641. TREATMENT OF TOBACCO LOAN
POOL
STOCKS
AND
OUTSTANDING LOAN COSTS.
(a) DISPOSAL OF STOCKS. --To provide for the orderly
disposition of quota tobacco held by an association
that has entered into a loan agreement with the
Commodity Credit Corporation under section 106A or
106B of the Agricultural Act of 1949 (7 U.S.C.
1445-1, 1445-2) (referred to in this section as an
"association"), loan pool stocks for each
kind of tobacco held by the association shall be
disposed of in accordance with this section.
(b) DISPOSAL BY ASSOCIATIONS. --For each kind of
tobacco held by an association, the association
shall be responsible for the disposal of a specific
quantity of the loan pool stocks for that kind of
tobacco held by the association. The quantity
transferred to the association for disposal shall be
equal to the quantity determined by dividing --
(1) the amount of funds held by the association in
the No Net Cost Tobacco Fund and the No Net Cost
Tobacco Account established under sections 106A and
106B of the Agricultural Act of 1949 (7 U.S.C.
1445-1, 1445-2) for the kind of tobacco; by
(2) the average list price per pound for the kind of
tobacco, as determined by the Secretary.
(c) DISPOSAL OF REMAINDER BY COMMODITY CREDIT
CORPORATION. --
(1) DISPOSAL. --Any loan pool stocks of a kind of
tobacco of an association that are not transferred
to the association under subsection (b) for disposal
shall be disposed of by Commodity Credit Corporation
in a manner determined by the Secretary.
(2) REIMBURSEMENT. --As required by section
626(b)(1)(B), the Secretary shall transfer from the
Tobacco Trust Fund to the No Net Cost Tobacco Fund
or the No Net Cost Tobacco Account of an association
established under section 106A or 106B of the
Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2)
such amounts as the Secretary determines will be
adequate to reimburse the Commodity Credit
Corporation for any net losses that the Corporation
may sustain under its loan agreements with the
association.
(d) TRANSFER OF REMAINING NO
NET
COST
FUNDS. --Any funds in the No Net Cost Tobacco Fund
or the No Net Cost Tobacco Account of an association
established under sections 106A and 106B of the
Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2)
that remain after the application of subsections (b)
and (c) shall be transferred to the association for
distribution to producers of quota tobacco in
accordance with a plan approved by the Secretary.
SEC
. 642. REGULATIONS.
(a) IN GENERAL. --The Secretary may promulgate such
regulations as are necessary to implement this title
and the amendments made by this title.
(b) PROCEDURE. --The promulgation of the regulations
and administration of this title and the amendments
made by this title shall be made without regard to
--
(1) the notice and comment provisions of section 553
of title 5, United States Code;
(2) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking
and public participation in rulemaking; and
(3) chapter 35 of title 44, United States Code
(commonly known as the "Paperwork Reduction
Act").
(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING. --In
carrying out this section, the Secretary shall use
the authority provided under section 808 of title 5,
United States Code.
SEC
. 643. EFFECTIVE DATE.
This title and the amendments made by this title
shall apply to the 2005 and subsequent crops of each
kind of tobacco.
TITLE
VII
--MISCELLANEOUS PROVISIONS
SEC
. 701. BROWNFIELDS DEMONSTRATION PROGRAM FOR
QUALIFIED GREEN BUILDING
AND
SUSTAINABLE DESIGN PROJECTS.
(a) TREATMENT AS EXEMPT FACILITY BOND. --Subsection
(a) of section 142 (relating to the definition of
exempt facility bond) is amended by striking
"or" at the end of paragraph (12), by
striking the period at the end of paragraph (13) and
inserting ", or", and by inserting at the
end the following new paragraph:
"(14)
qualified green building and sustainable design
projects.".
(b) QUALIFIED GREEN BUILDING
AND
SUSTAINABLE DESIGN PROJECTS. --Section 142 (relating
to exempt facility bonds) is amended by adding at
the end thereof the following new subsection:
"(l)
QUALIFIED GREEN BUILDING
AND
SUSTAINABLE DESIGN PROJECTS. --
"(1)
IN GENERAL. --For purposes of subsection (a)(14),
the term 'qualified green building and sustainable
design project' means any project which is
designated by the Secretary, after consultation with
the Administrator of the Environmental Protection
Agency, as a qualified green building and
sustainable design project and which meets the
requirements of clauses (i), (ii), (iii), and (iv)
of paragraph (4)(A).
"(2)
DESIGNATIONS. --
"(A)
IN GENERAL. --Within 60 days after the end of the
application period described in paragraph (3)(A),
the Secretary, after consultation with the
Administrator of the Environmental Protection
Agency, shall designate qualified green building and
sustainable design projects. At least one of the
projects designated shall be located in, or within a
10-mile radius of, an empowerment zone as designated
pursuant to section 1391, and at least one of the
projects designated shall be located in a rural
State. No more than one project shall be designated
in a State. A project shall not be designated if
such project includes a stadium or arena for
professional sports exhibitions or games.
"(B)
MINIMUM CONSERVATION
AND
TECHNOLOGY INNOVATION OBJECTIVES. --The Secretary,
after consultation with the Administrator of the
Environmental Protection Agency, shall ensure that,
in the aggregate, the projects designated shall --
"(i)
reduce electric consumption by more than 150
megawatts annually as compared to conventional
generation,
"(ii)
reduce daily sulfur dioxide emissions by at least 10
tons compared to coal generation power,
"(iii)
expand by 75 percent the domestic solar photovoltaic
market in the United States (measured in megawatts)
as compared to the expansion of that market from
2001 to 2002, and
"(iv)
use at least 25 megawatts of fuel cell energy
generation.
"(3)
LIMITED DESIGNATIONS. --A project may not be
designated under this subsection unless --
"(A)
the project is nominated by a State or local
government within 180 days of the enactment of this
subsection, and
"(B)
such State or local government provides written
assurances that the project will satisfy the
eligibility criteria described in paragraph (4).
"(4)
APPLICATION. --
"(A)
IN GENERAL. --A project may not be designated under
this subsection unless the application for such
designation includes a project proposal which
describes the energy efficiency, renewable energy,
and sustainable design features of the project and
demonstrates that the project satisfies the
following eligibility criteria:
"(i)
GREEN BUILDING
AND
SUSTAINABLE DESIGN. --At least 75 percent of the
square footage of commercial buildings which are
part of the project is registered for United States
Green Building Council's LEED certification and is
reasonably expected (at the time of the designation)
to receive such certification. For purposes of
determining LEED certification as required under
this clause, points shall be credited by using the
following:
"(I)
For wood products, certification under the
Sustainable Forestry Initiative Program and the
American Tree Farm System.
"(II)
For renewable wood products, as credited for
recycled content otherwise provided under LEED
certification.
"(
III
) For composite wood products, certification under
standards established by the American National
Standards Institute, or such other voluntary
standards as published in the Federal Register by
the Administrator of the Environmental Protection
Agency.
"(ii)
BROWNFIELD REDEVELOPMENT. --The project includes a
brownfield site as defined by section 101(39) of the
Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601),
including a site described in subparagraph (D)(ii)(II)(aa)
thereof.
"(iii)
STATE
AND
LOCAL SUPPORT. --The project receives specific State
or local government resources which will support the
project in an amount equal to at least $5,000,000.
For purposes of the preceding sentence, the term
'resources' includes tax abatement benefits and
contributions in kind.
"(iv)
SIZE. --The project includes at least one of the
following:
"(I)
At least 1,000,000 square feet of building.
"(II)
At least 20 acres.
"(v)
USE OF TAX BENEFIT. --The project proposal includes
a description of the net benefit of the taxexempt
financing provided under this subsection which will
be allocated for financing of one or more of the
following:
"(I)
The purchase, construction, integration, or other
use of energy efficiency, renewable energy, and
sustainable design features of the project.
"(II)
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