Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 264.
Congressional Research Service
Official summary
Version 00 · Introduced in Senate · Jul 30, 2003
Tobacco Market Transition Act of 2003 - Amends, and repeals, specified agricultural Acts to eliminate tobacco quota and price support programs, including no net cost provisions.
Adds a new subtitle, Subtitle E: Tobacco Assistance, to title III of the Agricultural Adjustment Act of 1938 which requires the Secretary of Agriculture to make transition payments to each tobacco quota holder (generally, an owner of a farm, as of July 1, 2002, for which a basic tobacco marketing or farm acreage allotment for quota tobacco was established for the 2002 tobacco marketing year under a marketing quota program).
Requires the Secretary to make direct payments to a traditional producer of tobacco (a person that, for at least one of the 2000, 2001, or 2002 tobacco marketing years, was actively engaged in the production of tobacco marketed, or considered planted, under a marketing quota and shared in the risk of producing the tobacco).
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Directs the Secretary to establish: (1) a permanent advisory board, the Tobacco Quality Board; (2) a permanent advisory board for each kind of tobacco, a Production Board; and (3) an acreage limitation program for each crop of each kind of tobacco.
Directs the Secretary, during any consecutive 4-week period of a marketing year in which the world price for the crop of a kind of tobacco exceeds the average domestic price for such tobacco, to make market stability payments available to active producers of such tobacco.
Directs the Secretary to make grants: (1) to eligible States for the Federal share of carrying out economic development initiatives in impacted counties (counties in which tobacco producers have sustained a reduction in gross receipts from the sale of tobacco for a base period); and (2) to colleges and universities in eligible States to conduct research to assist tobacco producers to diversify so as to reduce or eliminate reliance on tobacco production (or to promote alternative uses of tobacco or enhance the quality of tobacco produced), and to foster development of economically viable new agricultural technologies and enterprises for rural communities.
Establishes in the Commodity Credit Corporation a revolving trust fund to carry out this subtitle. Deposits into the Fund an annual assessment (imposed by this Act) on each tobacco product manufacturer and tobacco product importer that sells tobacco products in domestic U.S. commerce.
Sets forth tobacco stocks and no net cost transition provisions.
Source last updated: Aug 18, 2025. Consult Congress.gov for the current record.
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