118 STAT. 1527 PUBLIC LAW 108–357—OCT. 22, 2004 respect to a kind of tobacco, in an amount equal to 1 10 of the amount determined under paragraph (1) for the tobacco quota holder for that kind of tobacco. (f) DEATH OF TOBACCO QUOTA HOLDER.—If a tobacco quota holder who is entitled to contract payments under this section dies and is survived by a spouse or one or more dependents, the right to receive the payments shall transfer to the surviving spouse or, if there is no surviving spouse, to the estate of the tobacco quota holder. SEC. 623. CONTRACT PAYMENTS FOR PRODUCERS OF QUOTA TOBACCO. (a) CONTRACT OFFERED.—The Secretary shall offer to enter into a contract with each producer of quota tobacco under which the producer of quota tobacco shall be entitled to receive payments under this section in exchange for the termination of tobacco mar keting quotas and related price support under the amendments made by sections 611 and 612. The contract payments shall con stitute full and fair consideration for the termination of such tobacco marketing quotas and related price support. (b) ELIGIBILITY.— (1) APPLICATION AND DETERMINATION.—To be eligible to enter into a contract to receive a contract payment under this section, a person shall submit to the Secretary an application containing such information as the Secretary may require to demonstrate to the satisfaction of the Secretary that the person is a producer of quota tobacco. The application shall be sub mitted within such time, in such form, and in such manner as the Secretary may require. (2) EFFECT OF MULTIPLE PRODUCERS FOR SAME QUOTA TOBACCO.—If, on the basis of the applications submitted under paragraph (1) or other information, the Secretary determines that two or more persons are a producer of the same quota tobacco, the Secretary shall provide for an equitable distribution among the persons of the contract payments made under this section with respect to that quota tobacco, based on relative share of such persons in the risk of producing the quota tobacco and such other factors as the Secretary considers appropriate. (c) BASE QUOTA LEVEL.— (1) ESTABLISHMENT.—The Secretary shall establish a base quota level applicable to each producer of quota tobacco, as determined under this subsection. (2) FLUE CURED AND BURLEY TOBACCO.—In the case of Flue cured tobacco (types 11, 12, 13, and 14) and Burley tobacco (type 31), the base quota level for each producer of quota tobacco shall be equal to the effective tobacco marketing quota (irrespective of disaster lease and transfers) under part I of subtitle B of title III of the Agriculture Adjustment Act of 1938 for the 2002 marketing year for quota tobacco produced on the farm. (3) OTHER KINDS OF TOBACCO.—In the case of each kind of tobacco (other than tobacco covered by paragraph (2)), for the purpose of calculating a contract payment to a producer of quota tobacco, the base quota level for the producer of quota tobacco shall be the quantity obtained by multiplying— 7 USC 518b.
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