Phase III Implementation Act

Phase III Implementation Act - Directs the Secretary of Agriculture, beginning with the 2004 crop, to determine and announce the national estimate for each type of flue-cured and burley tobacco that the Secretary estimates will be utilized during the marketing year.

Requires each domestic manufacturer of cigarettes to submit to the Secretary a statement of the quantity of flue-cured tobacco and burley tobacco that the manufacturer intends to purchase on U.S. auction markets or from licensed tobacco producers during the next marketing year. Subjects a manufacturer to penalties for failure to submit such information, or for under purchasing.

Sets forth flue-cured and burley: (1) reserve supply levels; and (2) the national tobacco marketing factor.

Directs the Secretary: (1) to issue to each historic tobacco producer a tobacco production license to ensure production sufficient to satisfy the national estimate; and (2) if a license is surrendered or revoked, transfer the license and the corresponding tobacco production history to beginning tobacco producers or licensed tobacco producers in the same county, same State, or in counties in other States in which licensed producers are operating. Limits license use, sale, lease or transfer. Authorizes a producer to surrender a tobacco production license at any time. Directs the Secretary to revoke a license for production or risk-sharing failure.

Directs the Secretary to provide licensed tobacco producers with tobacco type and permitted quantity notification. Sets forth production level criteria beginning with the 2005 marketing year.

Amends the Agricultural Adjustment Act of 1938 to terminate the flue-cured and burley tobacco programs beginning with the 2004 crop year.

Directs the Secretary to conduct producer referenda to determine continuation of the program established by this Act.

Amends the Agricultural Act of 1949 to: (1) provide that for the 2004 and subsequent flue-cured and burley tobacco crops for which tobacco production licenses are in effect or have not been disapproved by producer referenda, the support level shall be the level in cents per pound equal to the cost of production; and (2) revise the definition of "quota tobacco."