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TITLE VII--PUBLIC DISCLOSURE OF HEALTH RESEARCH

SEC. 701. PURPOSE.

It is the purpose of this title to provide for the disclosure of previously nonpublic or confidential documents by manufacturers of tobacco products, including the results of internal health research, and to provide for a procedure to settle claims of attorney-client privilege, work product, or trade secrets with respect to such documents.

SEC. 702. NATIONAL TOBACCO DOCUMENT DEPOSITORY.

(a) ESTABLISHMENT- To be eligible to receive the protections provided under title VII, manufacturers of tobacco products, acting in conjunction with the Tobacco Institute and the Council for Tobacco Research, U.S.A. (prior to the termination of such entities under section 155), shall, not later than 180 days after the date of enactment of this Act, establish and maintain a National Tobacco Document Depository (in this title referred to as the `Depository'). Such Depository shall be located in the Washington, D.C. area and be open to the public.

(b) USE OF DEPOSITORY- The Depository shall be maintained in a manner that permits the Depository to be used as a resource for litigants, public health groups, and any other individuals who have an interest in the corporate records and research of the manufacturers concerning smoking and health, addiction or nicotine dependency, safer or less hazardous cigarettes, and underage tobacco use and marketing.

(c) CONTENTS- The Depository shall include (and manufacturers and the Tobacco Institute and the Council for Tobacco Research, U.S.A. shall provide)--

(1) within 180 days of the date of enactment of this Act, all documents provided by such entities to plaintiffs in--

(A) civil or criminal actions brought by State attorneys general (including all documents selected by plaintiffs from the Guilford Repository of the United Kingdom);

(B) Philip Morris Companies Inc.'s defamation action against Capital Cities/American Broadcasting Company News;

(C) the Federal Trade Commission's investigation concerning Joe Camel and underage marketing;

(D) the Haines and Cippollone actions; and

(E) the Butler action in Mississippi;

(2) within 90 days after the date of enactment of this Act, any exiting documents discussing or referring to health research, addiction or dependency, safer or less hazardous cigarettes, studies of the smoking habits of minors, and the relationship between advertising or promotion and youth smoking, that the entities described in subsection (a) have not completed producing as required in the actions described in paragraph (1);

(3) within 180 days of the date of enactment of this Act, all documents relating to indices (as defined by the court in the Minnesota Attorney General action) of documents relating to smoking and health, including all indices identified by the manufacturers in the Washington, Texas, and Minnesota Attorney General actions;

(4) upon the settlement of any action referred to in this subsection, and after a good-faith, de novo, document-by-document review of all documents previously withheld from production in any actions on the grounds of attorney-client privilege, all documents determined to be outside of the scope of the privilege;

(5) all existing or future documents relating to original laboratory research concerning the health or safety of tobacco products, including all laboratory research results relating to methods used to make tobacco products less hazardous to consumers;

(6) a comprehensive new attorney-client privilege log of all documents, itemized in sufficient detail so as to enable any interested individual to determine whether the individual will challenge the claim of privilege, that the entities described in subsection (a) (based on the de novo review of such documents by such entities) claim are protected from disclosure under the attorney-client privilege;

(7) all existing or future documents relating to studies of the smoking habits of minors or documents referring to any relationship between advertising and promotion and underage smoking; and

(8) all other documents determined appropriate under regulations promulgated by the Secretary.

(d) DISPUTE RESOLUTION PANEL-

(1) ESTABLISHMENT- The Judicial Conference of the United States shall establish a Tobacco Documents Dispute Resolution Panel, to be composed of three Federal judges to be appointed by the Conference, to resolve all disputes involving claims of attorney-client, work product, or trade secrets privilege with respect to documents required to be deposited into the Depository under subsection (c) that may be brought by Federal, State, or local governmental officials or the public or asserted in any action by a manufacturer.

(2) BASIS FOR DETERMINATIONS- The determinations of the Panel established under paragraph (1) shall be based on--

(A) the American Bar Association/American Law Institute Model Rules or the principals of Federal law with respect to attorney-client or work product privilege; and

(B) the Uniform Trade Secrets Act with respect to trade secrecy.

(3) DECISION- Any decision of the Panel established under paragraph (1) shall be final and binding upon all Federal and State courts.

(4) ASSESSING OF FEES- As part of a determination under this subsection, the Panel established under paragraph (1) shall determined whether a claimant of the privilege acted in good faith and had a factual and legal basis for asserting the claim. If the Panel determines that the claimant did not act in good faith, the Panel may assess costs against the claimant, including a reasonable attorneys' fee, and may apply such other sanctions as the Panel determines appropriate.

(5) ACCELERATED REVIEW- The Panel established under paragraph (1) shall establish procedures for the accelerated review of challenges to a claim of privilege. Such procedures shall include assurances that an individual filing a challenge to such a claim need not make a prima facie showing of any kind as a prerequisite to an in camera review of the documents at issue.

(6) SPECIAL MASTERS- The Panel established under paragraph (1) may appoint Special Masters in accordance with Rule 53 of the Federal Rules of Civil Procedure. The cost relating to any Special

Master shall be assessed to the manufacturers as part of a fee process to be established under regulations promulgated by the Secretary.

(e) OTHER PROVISIONS-

(1) NO WAIVER OF PRIVILEGE- Compliance with this section by the entities described in subsection (a) shall not be deemed to be a waiver on behalf of such entities of any applicable privilege or protection.

(2) AVOIDANCE OF DESTRUCTION- In establishing the Depository, procedures shall be implemented to protect against the destruction of documents.

(3) DEEMED PRODUCED- Any documents contained in the Depository shall be deemed to have been produced for purposes of any tobacco-related litigation in the United States.

(f) DOCUMENTS- For purposes of this section, the term `documents' shall include any paper documents that may be printed using data that is contained in computer files.

TITLE VIII--ASSISTANCE TO TOBACCO GROWERS AND COMMUNITIES

SEC. 801. SHORT TITLE.

This title may be cited as the `Long-Term Economic Assistance for Farmers Act' or the `LEAF Act'.

SEC. 802. DEFINITIONS.

In this title:

(1) ACTIVE TOBACCO PRODUCER- The term `active tobacco producer' means a quota holder, quota lessee, or quota tenant.

(2) QUOTA HOLDER- The term `quota holder' means a producer that owns a farm for which a tobacco farm marketing quota or farm acreage allotment was established under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for any of the 1994, 1995, or 1996 crop years.

(3) QUOTA LESSEE- The term `quota lessee' means--

(A) a producer that owns a farm that produced tobacco pursuant to a lease and transfer to that farm of all or part of a tobacco farm marketing quota or farm acreage allotment established under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for any of the 1994, 1995, or 1996 crop years; or

(B) a producer that rented land from a farm operator to produce tobacco under a tobacco farm marketing quota or farm acreage allotment established under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for any of the 1994, 1995, or 1996 crop years.

(4) QUOTA TENANT- The term `quota tenant' means a producer who--

(A) is the principal producer, as determined by the Secretary, of tobacco on a farm where tobacco is produced pursuant to a tobacco farm marketing quota or farm acreage allotment established under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) for any of the 1994, 1995, or 1996 crop years; and

(B) is not a quota holder or quota lessee.

(5) SECRETARY- The term `Secretary' means--

(A) in titles I and II, the Secretary of Agriculture; and

(B) in section 301, the Secretary of Labor.

(6) TOBACCO PRODUCT IMPORTER- The term `tobacco product importer' has the meaning given the term `importer' in section 5702 of the Internal Revenue Code of 1986.

(7) TOBACCO PRODUCT MANUFACTURER-

(A) IN GENERAL- The term `tobacco product manufacturer' has the meaning given the term `manufacturer of tobacco products' in section 5702 of the Internal Revenue Code of 1986.

(B) EXCLUSION- The term `tobacco product manufacturer' does not include a person that manufactures cigars or pipe tobacco.

(8) TRUST FUND- The term `Trust Fund' means the Tobacco Community Revitalization Trust Fund established under section 101.

Subtitle A--Tobacco Community Revitalization Trust Fund

SEC. 811. ESTABLISHMENT OF TRUST FUND.

(a) IN GENERAL- There is established in the Treasury of the United States a trust fund to be known as the `Tobacco Community Revitalization Trust Fund', consisting of such amounts as may be appropriated or credited to the Trust Fund. The Trust Fund shall be administered by the Secretary.

(b) TRANSFERS TO TRUST FUND- There are appropriated and transferred to the Trust Fund for each fiscal year--

(1) amounts contributed by tobacco product manufacturers and tobacco product importers under section 102; and

(2) amounts made available to the Trust Fund out of funds allocated through national tobacco settlement legislation.

(c) REPAYABLE ADVANCES-

(1) AUTHORIZATION- There are authorized to be appropriated to the Trust Fund, as repayable advances, such sums as may from time to time be necessary to make expenditures under subsection (d).

(2) REPAYMENT WITH INTEREST- Repayable advances made to the Trust Fund shall be repaid, and interest on the advances shall be paid, to the general fund of the Treasury when the Secretary of the Treasury determines that moneys are available in the Trust Fund to make the payments.

(3) RATE OF INTEREST- Interest on an advance made under this subsection shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) that is equal to the current average market yield on outstanding marketable obligations of the United States with remaining period to maturity comparable to the anticipated period during which the advance will be outstanding.

(d) EXPENDITURES FROM TRUST FUND- Amounts in the Trust Fund shall be available for making expenditures after October 1, 1998, to meet those necessary obligations of the Federal Government that are authorized to be paid under--

(1) section 201 for payments for lost tobacco quota for each of fiscal years 1999 through 2023, but not to exceed $1,600,000,000 for any fiscal year except to the extent the payments are made in accordance with section 201(j);

(2) section 202 for industry payments for all costs of the Department of Agriculture associated with the production of tobacco;

(3) section 203 for tobacco community economic development grants, but not to exceed--

(A) $400,000,000 for each of fiscal years 1999 through 2008, less any amount required to be paid under section 202 for the fiscal year; and

(B) $450,000,000 for each of fiscal year 2009 through 2023, less any amount required to be paid under section 202 during the fiscal year;

(4) section 301 for assistance provided under the tobacco worker transition program, but not to exceed $50,000,000 for any fiscal year; and

(5) subpart 9 of part A of title IV of the Higher Education Act of 1965 for farmer opportunity grants, but not to exceed--

(A) $42,500,000 for each of the academic years 1999-2000 through 2003-2004;

(B) $50,000,000 for each of the academic years 2004-2005 through 2008-2009;

(C) $57,500,000 for each of the academic years 2009-2010 through 2013-2014;

(D) $65,000,000 for each of the academic years 2014-2015 through 2018-2019; and

(E) $72,500,000 for each of the academic years 2019-2020 through 2023-2024.

(e) BUDGETARY TREATMENT- This section constitutes budget authority in advance of appropriations Acts and represents the obligation of the Federal Government to provide payments to States and eligible persons in accordance with this title.

SEC. 812. CONTRIBUTIONS BY TOBACCO PRODUCT MANUFACTURERS AND IMPORTERS.

(a) DEFINITION OF MARKET SHARE- In this section, the term `market share' means the ratio of--

(1) the tax liability of a tobacco product manufacturer or tobacco product importer (as defined in section 2) for a calendar year under section 5703 of the Internal Revenue Code of 1986; to

(2) the tax liability of all tobacco product manufacturers or tobacco product importers (as defined in section 2) for the calendar year under section 5703 of the Internal Revenue Code of 1986.

(b) DETERMINATIONS- Not later than September 30 of each fiscal year, the Secretary of the Treasury shall--

(1) determine--

(A) the market share of each tobacco product manufacturer or tobacco product importer during the most recent calendar year;

(B) the total amount of assessments payable for the subsequent fiscal year under subsection (c); and

(C) the amount of an assessment payable by the tobacco product manufacturer or tobacco product importer for the fiscal year under subsection (d); and

(2) notify each tobacco product manufacturer and tobacco product importer of the determinations made under paragraph (1) with respect to the manufacturer or importer.

(c) TOTAL AMOUNT OF ASSESSMENTS-

(1) IN GENERAL- The total amount of assessments payable by all tobacco product manufacturers and tobacco product importers into the Trust Fund for a fiscal year shall be equal to--

(A) the amount of the contribution to the Trust Fund for the fiscal year required under paragraph (2); less

(B) any amount made available during the preceding fiscal year to the Trust Fund out of funds allocated through national tobacco settlement legislation.

(2) TRUST FUND CONTRIBUTIONS- The amount of the contribution to the Trust Fund shall be--

(A) $2,100,000,000 for each of fiscal years 1999 through 2008;

(B) $500,000,000 for each of fiscal years 2009 through 2023; and

(C) for fiscal year 2024 and each subsequent fiscal year, the amount payable under section 202.

(d) INDIVIDUAL AMOUNT OF ASSESSMENTS- The amount of an assessment payable by each tobacco product manufacturer and tobacco product importer into the Trust Fund for a fiscal year shall be equal to the product obtained by multiplying--

(1) the total amount of assessments payable by all tobacco product manufacturers and tobacco product importers for the fiscal year under subsection (c); by

(2) the market share of the tobacco product manufacturer or tobacco product importer during the most recent calendar year determined under subsection (b)(1)(A).

Subtitle B--Agricultural Market Transition Assistance

SEC. 821. PAYMENTS FOR LOST TOBACCO QUOTA.

(a) IN GENERAL- Beginning with the 1999 marketing year, the Secretary shall make payments for lost tobacco quota to eligible quota holders, quota lessees, and quota tenants as reimbursement for lost tobacco quota as a result of a decrease in demand for domestically produced tobacco.

(b) ELIGIBILITY- To be eligible to receive payments under this section, a quota holder, quota lessee, or quota tenant shall--

(1) prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including information sufficient to make the demonstration required under paragraph (2); and

(2) demonstrate to the satisfaction of the Secretary that, with respect to the 1996 marketing year--

(A) the producer was a quota holder and realized income from the production of tobacco through--

(i) the active production of tobacco;

(ii) the lease and transfer of tobacco quota to another farm;

(iii) the rental of all or part of the farm of the quota holder, including the right to produce tobacco, to another tobacco producer; or

(iv) the hiring of a quota tenant to produce tobacco;

(B) the producer was a quota lessee; or

(C) the producer was a quota tenant.

(c) BASE QUOTA LEVEL-

(1) IN GENERAL- The Secretary shall determine, for each quota holder, quota lessee, and quota tenant, the base quota level for the 1994 through 1996 marketing years.

(2) QUOTA HOLDERS- The base quota level for a quota holder shall be equal to the average tobacco farm marketing quota established for the farm owned by the quota holder for the 1994 through 1996 marketing years.

(3) QUOTA LESSEES- The base quota level for a quota lessee shall be equal to--

(A) 50 percent of the average number of pounds of tobacco quota established for a farm for the 1994 through 1996 marketing years--

(i) that was leased and transferred to a farm owned by the quota lessee; or

(ii) for which the rights to produce the tobacco were rented to the quota lessee; less

(B) 25 percent of the average number of pounds of tobacco quota described in paragraph

(A) for which a quota tenant was the principal producer of the tobacco quota.

(4) QUOTA TENANTS- The base quota level for a quota tenant shall be equal to the sum of--

(A) 50 percent of the average number of pounds of tobacco quota established for a farm for the 1994 through 1996 marketing years--

(i) that was owned by a quota holder; and

(ii) for which the quota tenant was the principal producer of the tobacco on the farm; and

(B) 25 percent of the average number of pounds of tobacco quota for the 1994 through 1996 marketing years--

(i)(I) that was leased and transferred to a farm owned by the quota lessee; or

(II) for which the rights to produce the tobacco were rented to the quota lessee; and

(ii) for which the quota tenant was the principal producer of the tobacco on the farm.

(5) MARKETING QUOTAS OTHER THAN POUNDAGE QUOTAS- For each kind of tobacco for which there is a marketing quota or allotment (on an acreage basis), the base quota level for each quota holder, quota lessee, or quota tenant shall be determined in accordance with this subsection (based on a poundage conversion) in an amount equal to the product obtained by multiplying--

(A) the average tobacco farm marketing quota or allotment for the 1994 through 1996 marketing years; by

(B) the average county yield per acre for the county in which the farm is located for the kind of tobacco for the marketing years.

(d) PAYMENTS- Except as otherwise provided in this section, during any marketing year in which the national marketing quota for a kind of tobacco is less than the average national marketing quota level for the kind of tobacco for the 1994 through 1996 marketing years, the Secretary shall make payments for lost tobacco quota to each quota holder, quota lessee, and quota tenant that is eligible under subsection (b) in an amount that is equal to the product obtained by multiplying--

(1) the percentage by which the national marketing quota for the kind of tobacco is less than the average national marketing quota level for the kind of tobacco for the 1994 through 1996 marketing years; by

(2) the base quota level for the quota holder, quota lessee, or quota tenant; by

(3) $4 per pound.

(e) LIFETIME LIMITATION ON PAYMENTS- Except as otherwise provided in this section, the total amount of payments made under this section to a quota holder, quota lessee, or quota tenant during the lifetime of the holder, lessee, or tenant shall not exceed the product obtained by multiplying--

(1) the base quota level for the quota holder, quota lessee, or quota tenant; by

(2) $8 per pound.

(f) LIMITATIONS ON AGGREGATE ANNUAL PAYMENTS-

(1) IN GENERAL- Except as otherwise provided in this subsection, the total amount payable under this section for any marketing year shall not exceed $1,600,000,000.

(2) ACCELERATED PAYMENTS- Paragraph (1) shall not apply if accelerated payments for lost tobacco quota are made in accordance with subsection (j).

(3) REDUCTIONS- If the amount determined under subsection (d) for a marketing year exceeds the amount described in paragraph (1), the Secretary shall make a pro rata reduction in the amounts payable to quota holders, quota lessees, and quota tenants under this section to ensure that the total amount of the payments for lost tobacco quota does not exceed the limitation established under paragraph (1).

(4) ROLLOVER OF PAYMENTS FOR LOST TOBACCO QUOTA- Subject to paragraph (1), if the Secretary makes a reduction in accordance with paragraph (3), the amount of the reduction shall be applied to the next marketing year and added to the payments for lost tobacco for the marketing year.

(g) SUBSEQUENT SALE AND TRANSFER OF QUOTA- Effective beginning January 1, 1999, on the sale and transfer of a farm marketing quota under section 316(g) or 319(g) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314b(g), 1314e(g))--

(1) the person who sold and transferred the quota shall have--

(A) the base quota level attributable to the person reduced by the base quota level

attributable to the quota that is sold and transferred; and

(B) the lifetime limitation on payments established under subsection (e) attributable to the person reduced by the product obtained by multiplying--

(i) the base quota level attributable to the quota; by

(ii) $8 per pound; and

(2) the person who acquired the quota shall have--

(A) the base quota level attributable to the person increased by the base quota level attributable to the quota that was sold and transferred; and

(B) the lifetime limitation on payments established under subsection (e) attributable to the person--

(i) increased by the product obtained by multiplying--

(I) the base quota level attributable to the quota; by

(II) $8 per pound; but

(ii) decreased by any payments for lost tobacco quota previously made that are attributable to the quota that was sold and transferred.

(h) SALE OR TRANSFER OF FARM- On the sale or transfer of ownership of a farm that is owned by a quota holder, the base quota level established under subsection (c), the right to payments under subsection (d), and the lifetime limitation on payments established under subsection (e) shall transfer to the new owner of the farm to the same extent and in the same manner as those subsections applied to the previous quota holder.

(i) DEATH OF QUOTA LESSEE OR QUOTA TENANT- If a quota lessee or quota tenant who is entitled to payments under this section dies and is survived by a spouse or 1 or more dependents, the right to receive the payments shall transfer to the surviving spouse or, if there is no surviving spouse, to the surviving dependents in equal shares.

(j) ACCELERATION OF PAYMENTS-

(1) IN GENERAL- On the occurrence of any of the events described in paragraph (2), the Secretary shall make an accelerated lump sum payment for lost tobacco quota to each quota holder, quota lessee, and quota tenant for any affected kind of tobacco in accordance with paragraph (3).

(2) TRIGGERING EVENTS- The Secretary shall make accelerated payments under paragraph (1) if after the date of enactment of this title--

(A) for 3 consecutive marketing years, the national marketing quota for a kind of tobacco is less than 50 percent of the national marketing quota for the kind of tobacco for the 1996 marketing year; or

(B) Congress repeals or makes ineffective, directly or indirectly, any provision of--

(i) section 316(g) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314b(g));

(ii) section 319(g) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(g));

(iii) section 106 of the Agricultural Act of 1949 (7 U.S.C. 1445);

(iv) section 106A of the Agricultural Act of 1949 (7 U.S.C. 1445-1); or

(v) section 106B of the Agricultural Act of 1949 (7 U.S.C. 1445-2).

(3) AMOUNT- The amount of the accelerated payments made to each quota holder, quota lessee, and quota tenant under this subsection shall be equal to--

(A) the amount of the lifetime limitation established for the quota holder, quota lessee, or quota tenant under subsection (e); less

(B) any payments for lost tobacco quota received by the quota holder, quota lessee, or quota tenant before the occurrence of any of the events described in paragraph (2).

SEC. 822. INDUSTRY PAYMENTS FOR ALL DEPARTMENT COSTS ASSOCIATED WITH TOBACCO PRODUCTION.

(a) IN GENERAL- The Secretary shall use such amounts as are necessary from the Trust Fund at the end of each fiscal year to reimburse the Secretary for--

(1) costs associated with the administration of programs established under this title and amendments made by this title;

(2) costs associated with the administration of the tobacco quota and price support programs administered by the Secretary;

(3) costs to the Federal Government of carrying out crop insurance programs for tobacco;

(4) costs associated with all agricultural research, extension, or education activities associated with tobacco;

(5) costs associated with the administration of loan association and cooperative programs for tobacco producers, as approved by the Secretary; and

(6) any other costs incurred by the Department of Agriculture associated with the production of tobacco.

(b) LIMITATIONS- Amounts made available under subsection (a) may not be used--

(1) to provide direct benefits to quota holders, quota lessees, or quota tenants; or

(2) in a manner that results in a decrease, or an increase relative to other crops, in the amount of the crop insurance premiums assessed to active tobacco producers under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

(c) DETERMINATIONS- Not later than September 30, 1998, and each fiscal year thereafter, the Secretary shall determine--

(1) the amount of costs described in subsection (a); and

(2) the amount that will be provided under this section as reimbursement for the costs.

SEC. 823. TOBACCO COMMUNITY ECONOMIC DEVELOPMENT GRANTS.

(a) AUTHORITY- The Secretary shall make grants to tobacco-growing States in accordance with this section to enable the States to carry out economic development initiatives in tobacco-growing communities.

(b) APPLICATION- To be eligible to receive payments under this section, a State shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including--

(1) a description of the activities that the State will carry out using amounts received under the grant;

(2) a designation of an appropriate State agency to administer amounts received under the grant; and

(3) a description of the steps to be taken to ensure that the funds are distributed in accordance with subsection (e).

(c) AMOUNT OF GRANT-

(1) IN GENERAL- From the amounts available to carry out this section for a fiscal year, the Secretary shall allot to each State an amount that bears the same ratio to the amounts available as the total income of the State derived from the production of tobacco during the 1994 through 1996 marketing years (as determined under paragraph (2)) bears to the total income of all States derived from the production of tobacco during the 1994 through 1996 marketing years.

(2) TOBACCO INCOME- For the 1994 through 1996 marketing years, the Secretary shall determine the amount of income derived from the production of tobacco in each State and in all States.

(d) PAYMENTS-

(1) IN GENERAL- A State that has an application approved by the Secretary under subsection (b) shall be entitled to a payment under this section in an amount that is equal to its allotment under subsection (c).

(2) FORM OF PAYMENTS- The Secretary may make payments under this section to a State in installments, and in advance or by way of reimbursement, with necessary adjustments on account of overpayments or underpayments, as the Secretary may determine.

(3) REALLOTMENTS- Any portion of the allotment of a State under subsection (c) that the Secretary determines will not be used to carry out this section in accordance with an approved State application required under subsection (b), shall be reallotted by the Secretary to other States in proportion to the original allotments to the other States.

(e) USE AND DISTRIBUTION OF FUNDS-

(1) IN GENERAL- Amounts received by a State under this section shall be used to carry out economic development activities, including--

(A) rural business enterprise activities described in subsections (c) and (e) of section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932);

(B) down payment loan assistance programs that are similar to the program described in section 310E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935);

(C) activities designed to help create productive farm or off-farm employment in rural areas to provide a more viable economic base and enhance opportunities for improved incomes, living standards, and contributions by rural individuals to the economic and social development of tobacco communities;

(D) activities that expand existing infrastructure, facilities, and services to capitalize on opportunities to diversify economies in tobacco

communities and that support the development of new industries or commercial ventures;

(E) activities by agricultural organizations that provide assistance directly to active tobacco producers to assist in developing other agricultural activities that supplement tobacco-producing activities;

(F) initiatives designed to create or expand locally owned value-added processing and marketing operations in tobacco communities; and

(G) technical assistance activities by persons to support farmer-owned enterprises, or agriculture-based rural development enterprises, of the type described in section 252 or 253 of the Trade Act of 1974 (19 U.S.C. 2342, 2343).

(2) TOBACCO-GROWING COUNTIES- Assistance may be provided by a State under this section only to assist a county in the State that has been determined by the Secretary to have in excess of $100,000 in income derived from the production of tobacco during 1 or more of the 1994 through 1996 marketing years.

(3) DISTRIBUTION-

(A) ECONOMIC DEVELOPMENT ACTIVITIES- Not less than 20 percent of the amounts received by a State under this section shall be used to carry out--

(i) economic development activities described in subparagraph (E) or (F) of paragraph (1); or

(ii) agriculture-based rural development activities described in paragraph (1)(G).

(B) TECHNICAL ASSISTANCE ACTIVITIES- Not less than 4 percent of the amounts received by a State under this section shall be used to carry out technical assistance activities described in paragraph (1)(G).

(C) TOBACCO-GROWING COUNTIES- To be eligible to receive payments under this section, a State shall demonstrate to the Secretary that funding will be provided, during each 5-year period for which funding is provided under this section, for activities in each county in the State that has been determined under paragraph (2) to have in excess of $100,000 in income derived from the production of tobacco, in amounts that are at least equal to the product obtained by multiplying--

(i) the ratio that the tobacco production income in the county determined under paragraph (2) bears to the total tobacco production income for the State determined under subsection (c); by

(ii) 50 percent of the total amounts received by a State under this section during the 5-year period.

(f) PREFERENCES IN HIRING- A State may require recipients of funds under this section to provide a preference in employment to--

(1) an individual who--

(A) during the 1996 calendar year, was employed in the manufacture, processing, or warehousing of tobacco or tobacco products, or resided, in a county described in subsection (e)(2); and

(B) is eligible for assistance under the tobacco worker transition program established under section 301; or

(2) an individual who--

(A) during the 1996 marketing year, carried out tobacco quota or relevant tobacco production activities in a county described in subsection (e)(2);

(B) is eligible for a farmer opportunity grant under subpart 9 of part A of title IV of the Higher Education Act of 1965; and

(C) has successfully completed a course of study at an institution of higher education.

SEC. 824. MODIFICATIONS IN FEDERAL TOBACCO PROGRAMS.

(a) PROGRAM REFERENDA- Section 312(c) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1312(c)) is amended--

(1) by striking `(c) Within thirty' and inserting the following:

`(c) REFERENDA ON QUOTAS-

`(1) IN GENERAL- Not later than 30'; and

(2) by adding at the end the following:

`(2) REFERENDA ON PROGRAM CHANGES-

`(A) IN GENERAL- In the case of any kind of tobacco for which marketing quotas are in effect, on the receipt of a petition from more than 5 percent of the producers of that kind of tobacco in a State, the Secretary shall conduct a statewide referendum on any proposal related to the lease and transfer of tobacco quota within a State requested by the petition that is authorized under this part.

`(B) APPROVAL OF PROPOSALS- If a majority of producers of the kind of tobacco in the State approve a proposal in a referendum conducted under subparagraph (A), the Secretary shall implement the proposal in a manner that applies to all producers and quota holders of that kind of tobacco in the State.'.

(b) PURCHASE REQUIREMENTS- Section 320B of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314h) is amended--

(1) in subsection (c), by striking paragraph (1) and inserting the following:

`(1) 105 percent of the average market price for the kind of tobacco involved during the preceding marketing year; by'; and

(2) by striking subsection (d) and inserting the following:

`(d) USE OF PENALTY PAYMENTS- An amount equivalent to each penalty collected by the Secretary under this section shall be transmitted by the Secretary to the Secretary of the Treasury for deposit in the Tobacco Community Revitalization Trust Fund established under section 101 of the LEAF Act.'.

(c) ELIMINATION OF TOBACCO MARKETING ASSESSMENT-

(1) IN GENERAL- Section 106 of the Agricultural Act of 1949 (7 U.S.C. 1445(g)) is amended by striking subsection (g).

(2) CONFORMING AMENDMENT- Section 422(c) of the Uruguay Round Agreements Act (Public Law 103-465; 7 U.S.C. 1445 note) is amended by striking `section 106(g), 106A, or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445(g), 1445-1, or 1445-2)' and inserting `section 106A or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2)'.

Subtitle C--Farmer and Worker Transition Assistance

SEC. 831. TOBACCO WORKER TRANSITION PROGRAM.

(a) GROUP ELIGIBILITY REQUIREMENTS-

(1) CRITERIA- A group of workers (including workers in any firm or subdivision of a firm involved in the manufacture, processing, or warehousing of tobacco or tobacco products) shall be certified as eligible to apply for adjustment assistance under this section pursuant to a petition filed under subsection (b) if the Secretary of Labor determines that a significant number or proportion of the workers in such workers' firm or an appropriate subdivision of the firm have become totally or partially separated, or are threatened to become totally or partially separated, and--

(A) the sales or production, or both, of such firm or subdivision have decreased absolutely; and

(B) the implementation of the national tobacco settlement contributed importantly to such workers' separation or threat of separation and to the decline in the sales or production of such firm or subdivision.

(2) DEFINITION OF CONTRIBUTED IMPORTANTLY- In paragraph (1)(B), the term `contributed importantly' means a cause that is important but not necessarily more important than any other cause.

(3) REGULATIONS- The Secretary shall issue regulations relating to the application of the criteria described in paragraph (1) in making preliminary findings under subsection (b) and determinations under subsection (c).

(b) PRELIMINARY FINDINGS AND BASIC ASSISTANCE-

(1) FILING OF PETITIONS- A petition for certification of eligibility to apply for adjustment assistance under this section may be filed by a group of workers (including workers in any firm or subdivision of a firm involved in the manufacture, processing, or warehousing of tobacco or tobacco products) or by their certified or recognized union or other duly authorized representative with the Governor of the State in which such workers' firm or subdivision thereof is located.

(2) FINDINGS AND ASSISTANCE- Upon receipt of a petition under paragraph (1), the Governor shall--

(A) notify the Secretary that the Governor has received the petition;

(B) within 10 days after receiving the petition--

(i) make a preliminary finding as to whether the petition meets the criteria described in subsection (a)(1); and

(ii) transmit the petition, together with a statement of the finding under clause (i) and reasons for the finding, to the Secretary for action under subsection (c); and

(C) if the preliminary finding under subparagraph (B)(i) is affirmative, ensure that

rapid response and basic readjustment services authorized under other Federal laws are made available to the workers.

(c) REVIEW OF PETITIONS BY SECRETARY; CERTIFICATIONS-

(1) IN GENERAL- The Secretary, within 30 days after receiving a petition under subsection (b)(2)(B)(ii), shall determine whether the petition meets the criteria described in subsection (a)(1). Upon a determination that the petition meets such criteria, the Secretary shall issue to workers covered by the petition a certification of eligibility to apply for the assistance described in subsection (d).

(2) DENIAL OF CERTIFICATION- Upon the denial of a certification with respect to a petition under paragraph (1), the Secretary shall review the petition in accordance with the requirements of other applicable assistance programs to determine if the workers may be certified under such other provisions.

(d) COMPREHENSIVE ASSISTANCE-

(1) IN GENERAL- Workers covered by a certification issued by the Secretary under subsection (c)(1) shall be provided with benefits and services described in paragraph (2) in the same manner and to the same extent as workers covered under a certification under subchapter A of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.), except that the total amount of payments under this section for any fiscal year shall not exceed $50,000,000.

(2) BENEFITS AND SERVICES- The benefits and services described in this paragraph are the following:

(A) Employment services of the type described in section 235 of the Trade Act of 1974 (19 U.S.C. 2295).

(B) Training described in section 236 of the Trade Act of 1974 (19 U.S.C. 2296), except that notwithstanding the provisions of section 236(a)(2)(A) of such Act, the total amount of payments for training under this section for any fiscal year shall not exceed $25,000,000.

(C) Tobacco worker readjustment allowances, which shall be provided in the same manner as trade readjustment allowances are provided under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2291 et seq.), except that--

(i) the provisions of sections 231(a)(5)(C) and 231(c) of such Act (19 U.S.C. 2291(a)(5)(C), 2291(c)), authorizing the payment of trade readjustment allowances upon a finding that it is not feasible or appropriate to approve a training program for a worker, shall not be applicable to payment of allowances under this section; and

(ii) notwithstanding the provisions of section 233(b) of such Act (19 U.S.C. 2293(b)), in order for a worker to qualify for tobacco readjustment allowances under this section, the worker shall be enrolled in a training program approved by the Secretary of the type described in section 236(a) of such Act (19 U.S.C. 2296(a)) by the later of--

(I) the last day of the 16th week of such worker's initial unemployment compensation benefit period; or

(II) the last day of the 6th week after the week in which the Secretary issues a certification covering such worker.

In cases of extenuating circumstances relating to enrollment of a worker in a training program under this section, the Secretary may extend the time for enrollment for a period of not to exceed 30 days.

(D) Job search allowances of the type described in section 237 of the Trade Act of 1974 (19 U.S.C. 2297).

(E) Relocation allowances of the type described in section 238 of the Trade Act of 1974 (19 U.S.C. 2298).

(e) INELIGIBILITY OF INDIVIDUALS RECEIVING PAYMENTS FOR LOST TOBACCO QUOTA- No benefits or services may be provided under this section to any individual who has received payments for lost tobacco quota under section 201.

(f) FUNDING- Of the amounts in the Trust Fund, the Secretary may use not to exceed $50,000,000 for each of fiscal years 1999 through 2008 to provide assistance under this section.

(g) EFFECTIVE DATE- This section shall take effect on the date that is the later of--

(1) October l, 1998; or

(2) the date on which legislation implementing the national tobacco settlement is enacted.

(h) TERMINATION DATE- No assistance, vouchers, allowances, or other payments may be provided under this section after the date that is the earlier of--

(1) the date that is 10 years after the effective date of this section under subsection (g); or

(2) the date on which legislation establishing a program providing dislocated workers with comprehensive assistance substantially similar to the assistance provided by this section becomes effective.

SEC. 832. FARMER OPPORTUNITY GRANTS.

Part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) is amended by adding at the end the following:

`Subpart 9--Farmer Opportunity Grants

`SEC. 420D. STATEMENT OF PURPOSE.

`It is the purpose of this subpart to assist in making available the benefits of postsecondary education to eligible students (determined in accordance with section 420F) in institutions of higher education by providing farmer opportunity grants to all eligible students.

`SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND DETERMINATIONS; APPLICATIONS.

`(a) PROGRAM AUTHORITY AND METHOD OF DISTRIBUTION-

`(1) PROGRAM AUTHORITY- From amounts made available under section 101(d)(5) of the LEAF Act, the Secretary, during the period beginning July 1, 1999, and ending September 30, 2024, shall pay to each eligible institution such sums as may be necessary to pay to each eligible student (determined in accordance with section 420F) for each academic year during which that student is in attendance at an institution of higher education, as an undergraduate, a farmer opportunity grant in the amount for which that student is eligible, as determined pursuant to subsection (b). Not less than 85 percent of such sums shall be advanced to eligible institutions prior to the start of each payment period and shall be based upon an amount requested by the institution as needed to pay eligible students, except that this sentence shall not be construed to limit the authority of the Secretary to place an institution on a reimbursement system of payment.

`(2) CONSTRUCTION- Nothing in this section shall be construed to prohibit the Secretary from paying directly to students, in advance of the beginning of the academic term, an amount for which the students are eligible, in cases where the eligible institution elects not to participate in the disbursement system required by paragraph (1).

`(3) DESIGNATION- Grants made under this subpart shall be known as `farmer opportunity grants'.

`(b) AMOUNT OF GRANTS-

`(1) AMOUNTS-

`(A) IN GENERAL- The amount of the grant for a student eligible under this subpart shall be--

`(i) $1,700 for each of the academic years 1999-2000 through 2003-2004;

`(ii) $2,000 for each of the academic years 2004-2005 through 2008-2009;

`(iii) $2,300 for each of the academic years 2009-2010 through 2013-2014;

`(iv) $2,600 for each of the academic years 2014-2015 through 2018-2019; and

`(v) $2,900 for each of the academic years 2019-2020 through 2023-2024.

`(B) PART-TIME RULE- In any case where a student attends an institution of higher education on less than a full-time basis (including a student who attends an institution of higher education on less than a half-time basis) during any academic year, the amount of the grant for which that student is eligible shall be reduced in proportion to the degree to which that student is not so attending on a full-time basis, in accordance with a schedule of reductions established by the Secretary for the purposes of this subparagraph, computed in accordance with this subpart. Such schedule of reductions shall be established by regulation and published in the Federal Register.

`(2) MAXIMUM- No grant under this subpart shall exceed the cost of attendance (as described in section 472) at the institution at which that student is in attendance. If, with respect to any student, it is determined that the amount of a grant exceeds the cost of attendance for that year, the amount of the grant shall be reduced to an amount equal to the cost of attendance at such institution.

`(3) PROHIBITION- No grant shall be awarded under this subpart to any individual who is incarcerated in any Federal, State, or local penal institution.

`(c) PERIOD OF ELIGIBILITY FOR GRANTS-

`(1) IN GENERAL- The period during which a student may receive grants shall be the period required for the completion of the first undergraduate

baccalaureate course of study being pursued by that student at the institution at which the student is in attendance, except that any period during which the student is enrolled in a noncredit or remedial course of study as described in paragraph (2) shall not be counted for the purpose of this paragraph.

`(2) CONSTRUCTION- Nothing in this section shall be construed to--

`(A) exclude from eligibility courses of study that are noncredit or remedial in nature and that are determined by the institution to be necessary to help the student be prepared for the pursuit of a first undergraduate baccalaureate degree or certificate or, in the case of courses in English language instruction, to be necessary to enable the student to utilize already existing knowledge, training, or skills; and

`(B) exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the student is enrolled.

`(3) PROHIBITION- No student is entitled to receive farmer opportunity grant payments concurrently from more than 1 institution or from the Secretary and an institution.

`(d) APPLICATIONS FOR GRANTS-

`(1) IN GENERAL- The Secretary shall from time to time set dates by which students shall file applications for grants under this subpart. The filing of applications under this subpart shall be coordinated with the filing of applications under section 401(c).

`(2) INFORMATION AND ASSURANCES- Each student desiring a grant for any year shall file with the Secretary an application for the grant containing such information and assurances as the Secretary may deem necessary to enable the Secretary to carry out the Secretary's functions and responsibilities under this subpart.

`(e) DISTRIBUTION OF GRANTS TO STUDENTS- Payments under this section shall be made in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purpose of this section. Any disbursement allowed to be made by crediting the student's account shall be limited to tuition and fees and, in the case of institutionally owned housing, room and board. The student may elect to have the institution provide other such goods and services by crediting the student's account.

`(f) INSUFFICIENT FUNDING- If, for any fiscal year, the funds made available to carry out this subpart from the Tobacco Community Revitalization Trust Fund are insufficient to satisfy fully all grants for students determined to be eligible under section 420F, the amount of the grant provided under subsection (b) shall be reduced on a pro rata basis among all eligible students.

`(g) TREATMENT OF INSTITUTIONS AND STUDENTS UNDER OTHER LAWS- Any institution of higher education that enters into an agreement with the Secretary to disburse to students attending that institution the amounts those students are eligible to receive under this subpart shall not be deemed, by virtue of such agreement, to be a contractor maintaining a system of records to accomplish a function of the Secretary. Recipients of farmer opportunity grants shall not be considered to be individual grantees for purposes of the Drug-Free Workplace Act of 1988 (41 U.S.C. 701 et seq.).

`SEC. 420F. STUDENT ELIGIBILITY.

`(a) IN GENERAL- In order to receive any grant under this subpart, a student shall--

`(1) be a member of a tobacco farm family in accordance with subsection (b);

`(2) be enrolled or accepted for enrollment in a degree, certificate, or other program (including a program of study abroad approved for credit by the eligible institution at which such student is enrolled) leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with section 487, and not be enrolled in an elementary or secondary school;

`(3) if the student is presently enrolled at an institution of higher education, be maintaining satisfactory progress in the course of study the student is pursuing in accordance with subsection (c);

`(4) not owe a refund on grants previously received at any institution of higher education under this title, or be in default on any loan from a student loan fund at any institution provided for in part D, or a loan made, insured, or guaranteed by the Secretary under this title for attendance at any institution;

`(5) file with the institution of higher education that the student intends to attend, or is attending, a document, that need not be notarized, but that shall include--

`(A) a statement of educational purpose stating that the money attributable to such

grant will be used solely for expenses related to attendance or continued attendance at such institution; and

`(B) such student's social security number; and

`(6) be a citizen of the United States.

`(b) TOBACCO FARM FAMILIES-

`(1) IN GENERAL- For the purpose of subsection (a)(1), a student is a member of a tobacco farm family if during calendar year 1996 the student was--

`(A) an individual who--

`(i) is an active tobacco producer (as defined in section 2 of the LEAF Act); or

`(ii) is otherwise actively engaged in the production of tobacco;

`(B) a spouse, son, daughter, stepson, or stepdaughter of an individual described in subparagraph (A);

`(C) an individual--

`(i) who was a brother, sister, stepbrother, stepsister, son-in-law, or daughter-in-law of an individual described in subparagraph (A); and

`(ii) whose principal place of residence was the home of the individual described in subparagraph (A); or

`(D) an individual who was a dependent (within the meaning of section 152 of the Internal Revenue Code of 1986) of an individual described in subparagraph (A).

`(2) ADMINISTRATION- On request, the Secretary of Agriculture shall provide to the Secretary such information as is necessary to carry out this subsection.

`(c) SATISFACTORY PROGRESS-

`(1) IN GENERAL- For the purpose of subsection (a)(3), a student is maintaining satisfactory progress if--

`(A) the institution at which the student is in attendance reviews the progress of the student at the end of each academic year, or its equivalent, as determined by the institution; and

`(B) the student has at least a cumulative C average or its equivalent, or academic standing consistent with the requirements for graduation, as determined by the institution, at the end of the second such academic year.

`(2) SPECIAL RULE- Whenever a student fails to meet the eligibility requirements of subsection (a)(3) as a result of the application of this subsection and subsequent to that failure the student has academic standing consistent with the requirements for graduation, as determined by the institution, for any grading period, the student may, subject to this subsection, again be eligible under subsection (a)(3) for a grant under this subpart.

`(3) WAIVER- Any institution of higher education at which the student is in attendance may waive paragraph (1) or (2) for undue hardship based on--

`(A) the death of a relative of the student;

`(B) the personal injury or illness of the student; or

`(C) special circumstances as determined by the institution.

`(d) STUDENTS WHO ARE NOT SECONDARY SCHOOL GRADUATES- In order for a student who does not have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such certificate, to be eligible for any assistance under this subpart, the student shall meet either 1 of the following standards:

`(1) EXAMINATION- The student shall take an independently administered examination and shall achieve a score, specified by the Secretary, demonstrating that such student can benefit from the education or training being offered. Such examination shall be approved by the Secretary on the basis of compliance with such standards for development, administration, and scoring as the Secretary may prescribe in regulations.

`(2) DETERMINATION- The student shall be determined as having the ability to benefit from the education or training in accordance with such process as the State shall prescribe. Any such process described or approved by a State for the purposes of this section shall be effective 6 months after the date of submission to the Secretary unless the Secretary disapproves such process. In determining whether to approve or disapprove such process, the Secretary shall take into account the effectiveness of such process in enabling students without secondary school diplomas or the recognized equivalent to benefit from the instruction offered by institutions utilizing such process, and shall also take into account the cultural diversity, economic circumstances, and

educational preparation of the populations served by the institutions.

`(e) SPECIAL RULE FOR CORRESPONDENCE COURSES- A student shall not be eligible to receive a grant under this subpart for a correspondence course unless such course is part of a program leading to an associate, bachelor, or graduate degree.

`(f) COURSES OFFERED THROUGH TELECOMMUNICATIONS-

`(1) RELATION TO CORRESPONDENCE COURSES- A student enrolled in a course of instruction at an eligible institution of higher education (other than an institute or school that meets the definition in section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471(4)(C))) that is offered in whole or in part through telecommunications and leads to a recognized associate, bachelor, or graduate degree conferred by such institution shall not be considered to be enrolled in correspondence courses unless the total amount of telecommunications and correspondence courses at such institution equals or exceeds 50 percent of such courses.

`(2) RESTRICTION OR REDUCTIONS OF FINANCIAL AID- A student's eligibility to receive a grant under this subpart may be reduced if a financial aid officer determines under the discretionary authority provided in section 479A that telecommunications instruction results in a substantially reduced cost of attendance to such student.

`(3) DEFINITION- For the purposes of this subsection, the term `telecommunications' means the use of television, audio, or computer transmission, including open broadcast, closed circuit, cable, microwave, or satellite, audio conferencing, computer conferencing, or video cassettes or discs, except that such term does not include a course that is delivered using video cassette or disc recordings at such institution and that is not delivered in person to other students of that institution.

`(g) STUDY ABROAD- Nothing in this subpart shall be construed to limit or otherwise prohibit access to study abroad programs approved by the home institution at which a student is enrolled. An otherwise eligible student who is engaged in a program of study abroad approved for academic credit by the home institution at which the student is enrolled shall be eligible to receive a grant under this subpart, without regard to whether such study abroad program is required as part of the student's degree program.

`(h) VERIFICATION OF SOCIAL SECURITY NUMBER- The Secretary, in cooperation with the Commissioner of Social Security, shall verify any social security number provided by a student to an eligible institution under subsection (a)(5)(B) and shall enforce the following conditions:

`(1) PENDING VERIFICATION- Except as provided in paragraphs (2) and (3), an institution shall not deny, reduce, delay, or terminate a student's eligibility for assistance under this subpart because social security number verification is pending.

`(2) DENIAL OR TERMINATION- If there is a determination by the Secretary that the social security number provided to an eligible institution by a student is incorrect, the institution shall deny or terminate the student's eligibility for any grant under this subpart until such time as the student provides documented evidence of a social security number that is determined by the institution to be correct.

`(3) CONSTRUCTION- Nothing in this subsection shall be construed to permit the Secretary to take any compliance, disallowance, penalty, or other regulatory action against--

`(A) any institution of higher education with respect to any error in a social security number, unless such error was a result of fraud on the part of the institution; or

`(B) any student with respect to any error in a social security number, unless such error was a result of fraud on the part of the student.'.

Subtitle D--Immunity

SEC. 841. GENERAL IMMUNITY FOR TOBACCO PRODUCERS AND WAREHOUSERS.

Notwithstanding any other provision of this title, an active tobacco producer, tobacco-related growers association, or tobacco warehouse owner or employee may not be subject to liability in any Federal or State court for any cause of action resulting from the failure of any tobacco product manufacturer, distributor, or retailer to comply with national tobacco settlement legislation.

TITLE IX--EFFECTIVE DATES AND OTHER PROVISIONS

SEC. 901. EFFECTIVE DATES.

(a) IN GENERAL- Except as provided in subsection (b), and as otherwise provided in this Act, the provisions of this Act shall take effect on the date of enactment of this Act.

(b) EXCEPTIONS- The following provisions shall become effective as follows:

(1) The retail tobacco product display provisions under subtitle A of title I shall be applicable to retailers on the date that is 9 months after the date of enactment of this Act.

(2) The provisions relating to the display of tobacco product signs and displays by retailers under subtitle A of title I shall be applicable to retailers on the date that is 5 months after the date of enactment of this Act.

(3) The provisions of subtitle A of title I relating to advertising shall be applicable on the date that is 9 months after the date of enactment of this Act.

(4) The labeling requirements of subtitle A of title I and of chapter 9 of the Federal Food, Drug, and Cosmetic Act (as added by section 143(3) of this Act) shall be applicable (as determined under regulations promulgated by the Secretary) with respect to--

(A) 1/3 of all tobacco product packages, on the date that is 90 days after the date of enactment of this Act;

(B) 1/3 of all tobacco product packages, on the date that is 120 days after the date of enactment of this Act; and

(C) 1/3 of all tobacco product packages, on the date that is 180 days after the date of enactment of this Act.

(5) The provisions of section 105 relating to the sponsorship of events shall be applicable on December 31, 1998.

(6) The provisions of section 121 shall be applicable on the date that is 3 months after the date of enactment of this Act.

(7) The provisions of section 122 relating to vending machines shall be applicable on the date that is 12 months after the date of enactment of this Act.

(8) The provisions of section 122 relating to minimum package size shall be applicable on the date that is 3 months after the date of enactment of this Act.

(9) The provisions of section 122 relating to vending machines shall be applicable on the date that is 12 months after the date of enactment of this Act.

(10) The provisions of section 122 relating to sampling shall be applicable on the date that is 3 months after the date of enactment of this Act.

(11) The provisions of section 909 of the Federal Food, Drug and Cosmetic Act (as added by section 143(3) of this Act) relating to good manufacturing practices shall be applicable on the date that is 24 months after the date of enactment of this Act or on a date determined appropriate by the Secretary.

(12) The provisions of subtitle F of title I relating to corporate compliance shall be applicable on the date that is 12 months after the date of enactment of this Act.

SEC. 902. NATIVE AMERICANS.

(a) INDIAN COUNTRY- The provisions of this Act (or an amendment made by this Act) shall apply to the manufacture, distribution, and sale of tobacco products within Indian country.

(b) INDIAN TRIBES- To the extent that an Indian tribe or tribal organization engages in the manufacture, distribution, or sale of tobacco products, the provisions of this Act (or an amendment made by this Act) shall apply to such tribe or organization.

(c) PAYMENTS TO TRUST FUND- Any Indian tribe or tribal organization that engages in the manufacture of tobacco products shall be subject to liability under section 402, or shall be considered a non-participating manufacturer for purposes of section 613, and shall be subject to surcharges under section 205.

(d) APPLICATION OF FDA REQUIREMENTS-

(1) IN GENERAL- The Secretary shall promulgate regulations to provide for the application of the requirements of the Food, Drug and Cosmetic Act to tobacco products manufactured, distributed, or sold within Indian country.

(2) ELIGIBILITY FOR ASSISTANCE- Under the regulations promulgated under paragraph (1), the Secretary may provide assistance to an Indian tribe or tribal organization in meeting and enforcing the requirements under such regulations if--

(A) the tribe or organization has a governing body that has powers and carries out duties that are similar to the powers and duties of State or local governments;

(B) the functions to be exercised through the use of such assistance relate to activities on lands within the jurisdiction of the tribe or organization; and

(C) the tribe or organization is reasonably expected to be capable of carrying out the functions required by the Secretary.

(e) RETAIL LICENSING REQUIREMENTS-

(1) IN GENERAL- The requirements of subtitle D of title I shall apply to retailers that sell tobacco products within Indian country.

(2) SELF-REGULATION- The Secretary shall promulgate regulations to permit the Indian tribe or tribal organization with jurisdiction over the lands involved to implement a tribal licensing program that is at least as strict as the program in operation in the State in which the land involved is located.

(3) IMPLEMENTATION BY SECRETARY- If the Secretary determines that the Indian tribe or tribal organization is not qualified to administer the requirements of subtitle D of title I, the Secretary shall implement such requirements on behalf of the tribe or organization or delegate such authority to the State involved.

(f) ELIGIBILITY FOR PUBLIC HEALTH PAYMENTS-

(1) IN GENERAL- Except as provided in paragraph (2), an Indian tribe or tribal organization shall be considered a State for purposes of eligibility under title V.

(2) PUBLIC HEALTH PROGRAM-

(A) IN GENERAL- Each State that receives a payment under section 502 shall set aside an appropriate portion, as determined under regulations prescribed by the Secretary, of such payment for use by Indian tribes or tribal organizations within the State.

(B) AMOUNT- The amount of any funds under subparagraph (A) for which an Indian tribe or tribal organization is eligible shall be determined by the State based on the proportion of the registered members of the tribe involved as compared to the total population of all such registered members in the State.

(C) USE- Amounts provided to a tribe or organization under this paragraph shall be used as provided for in section 504 and in accordance with a plan submitted by the tribe or organization and approved by the Secretary as being in compliance with this Act.

(D) REALLOTMENT- Any amounts set aside and not expended under this paragraph shall be reallotted among other eligible tribes and organizations.

(g) OBLIGATION OF MANUFACTURERS-

(1) PROHIBITION- A manufacturer shall not engage in any activity within Indian country that is otherwise prohibited under this Act (or an amendment made by this Act).

(2) LIMITATION ON SALE- A manufacturer shall not sell or otherwise distribute a tobacco product for subsequent manufacture, distribution, or sale to an Indian tribe or tribal organization, or provide such products to a manufacturer, distributor, or retailer that is subject to the jurisdiction of a tribe or organization, except under the same terms and conditions as the manufacturer imposes on other manufacturers, distributors, or retailers.

(h) DEFINITIONS- In this section:

(1) INDIAN COUNTRY- The term `Indian country' has the meaning given such term by section 1151 of title 18, United States Code.

(2) INDIAN TRIBE- The term `Indian tribe' has the meaning given to such term by section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)).

(3) TRIBAL ORGANIZATION- The term `tribal organization' has the meaning given such term in section 4 of the Indian Self Determination and Education Assistance Act (25 U.S.C. 450b).

SEC. 903. PREEMPTION.

(a) GENERAL PREEMPTION- Except as otherwise provided for in this section, nothing in this Act shall be construed as prohibiting a State from imposing requirements, prohibitions, penalties or other measures to further the purposes of this Act that are in addition to the requirements, prohibitions, or penalties required under this Act. To the extent not inconsistent with the purposes of this Act, State and local governments may impose additional tobacco product control measures to further restrict or limit the use of such products by minors.

(b) ENFORCEMENT- A State may not impose obligations or requirements relating to the enforcement of this Act in a manner that conflicts with the provisions of title VI.

(c) PUBLIC EXPOSURE TO SMOKE- Nothing in title III shall be construed to preempt or otherwise affect any other Federal, State or local law which provides greater protection from the health hazards of environmental tobacco smoke.

(d) TAXES- Nothing in this Act shall be construed to prohibit a State from imposing taxes on tobacco products or tobacco product manufacturers, distributors, or retailers.

(e) NATIVE AMERICANS- Except as provided in section 902, a State may not impose obligations or requirements relating to the application of this Act to Indian tribes and tribal organizations.

END