Tobacco Transition Act

TABLE OF CONTENTS:

Title I: Tobacco Production Transition

Subtitle A: Tobacco Transition Contracts

Subtitle B: Rural Economic Assistance Block Grants

Title II: Tobacco Price Support and Production Adjustment

Programs

Subtitle A: Tobacco Price Support Program

Subtitle B: Tobacco Production Adjustment Programs

Title III: Funding

Tobacco Transition Act - Title I: Tobacco Production Transition - Subtitle A: Tobacco Transition Contracts - Establishes in the National Tobacco Settlement Trust Fund (Fund) the Tobacco Transition Account (Account) to provide buyout and transition payments under this subtitle. Terminates the Account as of a certain date.

(Sec. 102) Directs the Secretary of Agriculture (Secretary) to offer to enter into transition contracts with tobacco owners and producers. Sets forth contract terms.

(Sec. 105) Directs the Secretary to make transition payments to certain quota tobacco producers.

Subtitle B: Rural Economic Assistance Block Grants - Directs the Secretary to use Account funds to make rural economic assistance block grants to States with tobacco-dependent areas. Terminates grant authority as of a certain date.

Title II: Tobacco Price Support and Production Adjustment Programs - Subtitle A: Tobacco Price Support Program - Amends the Agricultural Act of 1949 with respect to tobacco to: (1) revise and extend price supports at reduced levels; (2) require each producer marketing association providing price supports to establish a No Net Cost Tobacco Fund; (3) authorize the Secretary to carry out the price support program through association loans to producers; (4) direct the Secretary, as necessary, to establish No Net Cost Tobacco Accounts for associations with inadequate funds; and (5) terminate existing price support and no net cost provisions.

Subtitle B: Tobacco Production Adjustment Programs - Amends the Agricultural Adjustment Act of 1938 to terminate specified tobacco adjustment programs.

Title III: Funding - Directs the Secretary to request the Secretary of the Treasury to transfer specified funds from the Account to the Commodity Credit Corporation for activities under this Act. Terminates such authority as of a certain date.