A bill to provide market transition assistance for quota holders, active tobacco producers, and tobacco-growing counties, to authorize a private Tobacco Production Control Corporation and tobacco loan associations to control the production and marketing and ensure the quality of tobacco in the United States, and for other purposes.
TABLE OF CONTENTS:
Title I: Tobacco Community Revitalization Trust Fund
Title II: Tobacco Market Transition Assistance
Title III: Establishment of Private Tobacco Production
Adjustment and Quality Assurance Programs
Tobacco Market Transition Act - Title I: Tobacco Community Revitalization Trust Fund - Establishes in the Treasury the Tobacco Community Revitalization Trust Fund which shall make expenditures available for specified compensation, transition, and related assistance to tobacco producers. Authorizes appropriations (as repayable advances).
Title II: Tobacco Market Transition Assistance - Directs the Tobacco Production Control Corporation (established by this Act) to temporarily: (1) compensate eligible quota tobacco holders for loss of tobacco quota asset value; and (2) make transition payments to eligible active tobacco producers. Sets forth payment provisions.
(Sec. 203) Directs the Secretary of Agriculture to: (1) forgive specified loans to tobacco loan associations; and (2) transfer to such associations appropriate loan inventory titles and no net cost tobacco funds.
(Sec. 204) Directs the Corporation to provide grants to eligible political subdivisions for tobacco community economic development activities.
(Sec. 205) Amends the Internal Revenue Code to treat amounts received for loss of quota asset value as long-term capital gain income and active producer transition payments as regular income unless: (1) used for qualified debt repayment; or (2) transferred to a tobacco farmer individual retirement account (as provided for by this Act).
Title III: Establishment of Private Tobacco Production Adjustment and Quality Assurance Program - Establishes the Tobacco Production Control Corporation which shall: (1) establish a licensing system for tobacco production and marketing; and (2) enter into agreements with tobacco loan associations to administer licensing, price support, and marketing activities.
(Sec. 303) Sets forth tobacco price support levels and penalty provisions.
Introduced in Senate
Sponsor introductory remarks on measure. (CR S173-174, S178-179)
Read twice and referred to the Committee on Agriculture.
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