H.R. 2653 (104th): Tobacco Amendments Act of 1995

104th Congress, 1995–1996. Text as of Nov 16, 1995 (Introduced).

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HR 2653 IH

104th CONGRESS

1st Session

H. R. 2653

To amend the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949 to improve the operation of the Government Flue-cured and Burley tobacco programs.

IN THE HOUSE OF REPRESENTATIVES

November 16, 1995

Mr. ROSE (for himself and Mr. BAESLER) introduced the following bill; which was referred to the Committee on Agriculture


A BILL

To amend the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949 to improve the operation of the Government Flue-cured and Burley tobacco programs.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Tobacco Amendments Act of 1995’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Elimination of Federal budgetary outlays for tobacco programs.

      Sec. 3. Establishment of farm yield for Flue-cured tobacco based on individual farm production history.

      Sec. 4. Removal of farm reconstitution exception for Burley tobacco.

      Sec. 5. Reduction in percentage threshold for transfer of Flue-cured tobacco quota in cases of disaster.

      Sec. 6. Expansion of types of tobacco subject to no net cost assessment.

      Sec. 7. Repeal of reporting requirements relating to export of tobacco.

      Sec. 8. Repeal of limitation on reducing national marketing quota for Flue-cured and Burley tobacco.

      Sec. 9. Application of civil penalties under Tobacco Inspection Act.

      Sec. 10. Transfers of quota or allotment across county lines in a State.

      Sec. 11. Calculation of national marketing quota.

      Sec. 12. Clarification of authority to access civil money penalties.

      Sec. 13. Lease and transfer of farm marketing quotas for Burley tobacco.

      Sec. 14. Limitation on transfer of acreage allotments of other tobacco.

      Sec. 15. Good faith reliance on actions or advice of Department representatives.

      Sec. 16. Uniform forfeiture dates for Flue-cured and Burley tobacco.

      Sec. 17. Sale of Burley and Flue-cured tobacco marketing quotas for a farm by recent purchasers.

SEC. 2. ELIMINATION OF FEDERAL BUDGETARY OUTLAYS FOR TOBACCO PROGRAMS.

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

      (1) by striking ‘1998’ and inserting ‘2002’; and

      (2) by inserting after ‘equal to’ the following: ‘a pro rata share of the total amount of the costs of other Department of Agriculture programs related to tobacco production or processing that are not required to be covered by user fees or by contributions or assessments under section 106A(d)(1) or 106B(d)(1), but in no event less than’.

SEC. 3. ESTABLISHMENT OF FARM YIELD FOR FLUE-CURED TOBACCO BASED ON INDIVIDUAL FARM PRODUCTION HISTORY.

    (a) METHOD OF DETERMINING FARM ACREAGE ALLOTMENTS- Subsection (a) of section 317 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314c) is amended by striking paragraphs (2) through (8) and inserting the following new paragraphs:

      ‘(2) FARM ACREAGE ALLOTMENTS- The term ‘farm acreage allotment’ for a tobacco farm, other than a new tobacco farm, means the acreage allotment determined by dividing the farm marketing quota by the farm yield.

      ‘(3) FARM YIELD- The term ‘farm yield’ means the yield per acre for a farm determined according to regulations issued by the Secretary and which would be expected to result in a quality of tobacco acceptable to the tobacco trade.

      ‘(4) FARM MARKETING QUOTA-

        ‘(A) IN GENERAL- The term ‘farm marketing quota’ for a farm for a marketing year means a number that is equal to the number of pounds of tobacco determined by multiplying--

          ‘(i) the farm marketing quota for the farm for the previous marketing year (prior to any adjustment for undermarketing or overmarketing); by

          ‘(ii) the national factor.

        ‘(B) ADJUSTMENT- The farm marketing quota determined under subparagraph (A) for a marketing year shall be increased for undermarketing or decreased for overmarketing by the number of pounds by which marketings of tobacco from the farm during the immediate preceding marketing year (if marketing quotas were in effect for that year under the program established by this section) is less than or exceeds the farm marketing quota for such year. Notwithstanding the preceding sentence, the farm marketing quota for a marketing year shall not be increased under this subparagraph for undermarketing by an amount in excess of the farm marketing quota determined for the farm for the immediately preceding year prior to any increase for undermarketing or decrease for overmarketing. If due to excess marketing in the preceding marketing year, the farm marketing quota for the marketing year is reduced to zero pounds without reflecting the entire reduction required, the additional reduction shall be made for the subsequent marketing year or years.

      ‘(5) NATIONAL FACTOR- The term ‘national factor’ for a marketing year means a number obtained by dividing--

        ‘(A) the national marketing quota (less the reserve provided for under subsection (e)); by

        ‘(B) the sum of the farm marketing quotas (prior to any adjustments for undermarketing or overmarketing) for the immediate preceding marketing year for all farms for which marketing quotas for the kind of tobacco involved will be determined for such succeeding marketing year.’.

    (b) CONFORMING AMENDMENTS- Such section is further amended--

      (1) in the first sentence of subsection (b), by striking ‘and the national acreage allotment and national average yield goal for the 1965 crop of Flue-cured tobacco,’;

      (2) in the first sentence of subsection (c), by striking ‘and at the same time announce the national acreage allotment and national average yield goal’;

      (3) in subsection (d)--

        (A) in the sixth sentence, by striking ‘, national acreage allotment, and national average yield goal’;

        (B) in the eighth sentence, by striking ‘, national acreage allotment and national average yield goal’; and

        (C) in the ninth sentence, by striking ‘, national acreage allotment, and national average goal are’ and inserting ‘is’;

      (4) in subsection (e)--

        (A) in the first sentence, by striking ‘No farm acreage allotment or farm yield shall be established’ and inserting ‘A farm marketing quota and farm yield shall not be established’;

        (B) in the second sentence, by striking ‘acreage allotment’ both places it appears and inserting ‘marketing quota’;

        (C) in the second sentence, by striking ‘acreage allotments’ both places it appears and inserting ‘marketing quotas’; and

        (D) in the last sentence, by striking ‘acreage allotment’ and inserting ‘marketing quota’; and

      (5) in subsection (g)--

        (A) in paragraph (1), by striking ‘paragraph (a)(8)’ and inserting ‘subsection (a)(4)’; and

        (B) in paragraph (3), by striking ‘subsection (a)(8)’ and inserting ‘subsection (a)(4)’.

    (c) FARM MARKETING QUOTA REDUCTIONS- Subsection (f) of such section is amended to read as follows:

    ‘(f) CAUSES FOR FARM MARKETING QUOTA REDUCTION- (1) When an acreage-poundage program is in effect for any kind of tobacco under this section, the farm marketing quota next established for a farm shall be reduced by the amount of such kind of tobacco produced on the farm--

      ‘(A) which was marketed as having been produced on a different farm;

      ‘(B) for which proof of disposition is not furnished as required by the Secretary;

      ‘(C) on acreage equal to the difference between the acreage reported by the farm operator or a duly authorized representative and the determined acreage for the farm; and

      ‘(D) as to which any producer on the farm filed, or aids, or acquiesces, in the filing of any false report with respect to the production or marketing of tobacco.

    ‘(2) If the Secretary, through the local committee, finds that no person connected with a farm caused, aided, or acquiesced in any irregularity described in paragraph (1), the next established farm marketing quota shall not be reduced under this subsection.

    ‘(3) The reduction required under this subsection shall be in addition to any other adjustments made pursuant to this section.

    ‘(4) In establishing farm marketing quotas for other farms owned by the owner displaced by acquisition of the owner’s land by any agency, as provided in section 378 of this Act, increases or decreases in such farm marketing quotas as provided in this section shall be made on account of marketings below or in excess of the farm marketing quotas for the farm acquired by the agency.

    ‘(5) Acreage allotments and farm marketing quotas determined under this section may (except in the case of kinds of tobacco not subject to section 316) be leased and sold under the terms and conditions in section 316 of this Act, except that any credit for undermarketing or charge for overmarketing shall be attributed to the farm to which transferred.’.

    (d) EFFECT OF AMENDMENTS ON CURRENT TOBACCO CROP- Section 317 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314c), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to the 1996 crop of Flue-cured tobacco.

SEC. 4. REMOVAL OF FARM RECONSTITUTION EXCEPTION FOR BURLEY TOBACCO.

    Section 379(a)(6) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1379(a)(6)) is amended by striking ‘, but this clause (6) shall not be applicable in the case of burley tobacco’.

SEC. 5. REDUCTION IN PERCENTAGE THRESHOLD FOR TRANSFER OF FLUE-CURED TOBACCO QUOTA IN CASES OF DISASTER.

    The second subsection (h) in section 316 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314b) is amended by striking ‘90 percent’ in paragraph (1)(A) and inserting ‘80 percent’.

SEC. 6. EXPANSION OF TYPES OF TOBACCO SUBJECT TO NO NET COST ASSESSMENT.

    (a) NO NET COST TOBACCO FUND- Section 106A(d)(1)(A) of the Agricultural Act of 1949 (7 U.S.C. 1445-1(d)(1)(A)) is amended--

      (1) in clause (ii), by inserting after ‘Burley quota tobacco’ the following: ‘and cigar-type quota tobacco’; and

      (2) in clause (iii)--

        (A) in the matter preceding the subclauses, by striking ‘Flue-cured or Burley tobacco’ and inserting ‘each kind of tobacco for which price support is made available under this Act, and each kind of like tobacco,’; and

        (B) by striking subclause (II) and inserting the following new subclause:

          ‘(II) the sum of the amount of the per pound producer contribution and purchaser assessment (if any) for such kind of tobacco payable under clauses (i) and (ii); and’.

    (b) NO NET COST TOBACCO ACCOUNT- Section 106B(d)(1) of the Agricultural Act of 1949 (7 U.S.C. 1445-2(d)(1)) is amended--

      (1) in subparagraph (B), by inserting after ‘Burley quota tobacco’ the following: ‘and cigar-type quota tobacco’; and

      (2) in subparagraph (C), by striking ‘Flue-cured and Burley tobacco’ and inserting ‘each kind of tobacco for which price support is made available under this Act, and each kind of like tobacco,’.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect 60 days after the date of the enactment of this Act.

SEC. 7. REPEAL OF REPORTING REQUIREMENTS RELATING TO EXPORT OF TOBACCO.

    Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is repealed.

SEC. 8. REPEAL OF LIMITATION ON REDUCING NATIONAL MARKETING QUOTA FOR FLUE-CURED AND BURLEY TOBACCO.

    (a) FLUE-CURED TOBACCO- Section 317(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314c(a)(1)) is amended by striking subparagraph (C).

    (b) BURLEY TOBACCO- Section 319(c)(3) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(c)(3)) is amended by striking subparagraph (C).

SEC. 9. APPLICATION OF CIVIL PENALTIES UNDER TOBACCO INSPECTION ACT.

    Section 12 of the Tobacco Inspection Act (7 U.S.C. 511k) is amended--

      (1) by inserting ‘(a) FINE FOR VIOLATIONS- ’ after ‘That any person’; and

      (2) by adding at the end the following new subsections:

    ‘(b) JURISDICTION- The district courts of the United States are vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating, any rule or regulation issued under this Act.

    ‘(c) REFERRAL TO ATTORNEY GENERAL- A civil action authorized to be commenced under this section shall be referred to the Attorney General for appropriate action, except that the Secretary shall not be required to refer to the Attorney General a violation of this Act, if the Secretary believes that the administration and enforcement of this Act would be adequately served by providing a suitable written notice or warning to the person who committed such violation or administrative action.

    ‘(d) CIVIL PENALTIES AND ORDERS-

      ‘(1) CIVIL PENALTIES- Any person who willfully violates any provision of this Act or any of the regulations issued by the Secretary under this Act may be assessed a civil penalty by the Secretary of not less than $500 or more than $5,000 for each such violation. Each violation shall be a separate offense.

      ‘(2) CEASE AND DESIST ORDERS- In addition to, or in lieu of, a civil penalty under paragraph (1), the Secretary may issue an order requiring a person to cease and desist from continuing any such violation.

      ‘(3) NOTICE AND HEARING- No penalty shall be assessed or cease-and-desist order issued by the Secretary under this subsection unless the person against whom the penalty is assessed or the order is issued is given notice and opportunity for a hearing before the Secretary with respect to such violation.

      ‘(4) FINALITY- The order of the Secretary assessing a penalty or imposing a cease-and-desist order under this subsection shall be final and conclusive unless the affected person files an appeal of the Secretary’s order with the appropriate district court of the United States, in accordance with subsection (e).

    ‘(e) REVIEW BY DISTRICT COURT-

      ‘(1) COMMENCEMENT OF ACTION- Any person who has been determined to be in violation of this Act, or against whom a civil penalty has been assessed or a cease-and-desist order issued under subsection (d), may obtain review of the penalty or order--

        ‘(A) by filing, within the 30-day period beginning on the date the penalty is assessed or order issued, a notice of appeal in--

          ‘(i) the district court of the United States for the district in which the person resides or conducts business; or

          ‘(ii) the United States District Court for the District of Columbia; and

        ‘(B) by sending, within the same period, a copy of such notice by certified mail to the Secretary.

      ‘(2) RECORD- The Secretary shall file promptly in the appropriate court referred to in paragraph (1), a certified copy of the record on which the Secretary has determined that the person had committed a violation.

      ‘(3) STANDARD OF REVIEW- A finding of the Secretary under this section shall be set aside only if such finding is found to be unsupported by substantial evidence.

    ‘(f) FAILURE TO OBEY ORDERS- Any person who fails to obey a cease-and-desist order under this section after such order has become final and unappealable, or after the appropriate United States district court has entered a final judgment in favor of the Secretary, shall be subject to a civil penalty assessed by the Secretary, after opportunity for hearing and for a judicial review under the procedures specified in subsection (e), of not more than $500 for each offense. Each day during which such failure continues shall be considered as a separate violation of such order.

    ‘(g) FAILURE TO PAY PENALTIES- If any person fails to pay an assessment of a civil penalty under this section after it has become a final and unappealable order, or after the appropriate United States district court has entered final judgment in favor of the Secretary, the Secretary shall refer the matter to the Attorney General for recovery of the amount assessed in the district court of the United States for the district in which the person resides or conducts business. In such action, the validity and appropriateness of the final order imposing the civil penalty shall not be subject to review.

    ‘(h) ADDITIONAL REMEDIES- The remedies provided in this section shall be in addition to, and not exclusive of, other remedies that may be available.’.

SEC. 10. TRANSFERS OF QUOTA OR ALLOTMENT ACROSS COUNTY LINES IN A STATE.

    (a) TRANSFERS ALLOWED BY REFERENDUM-

      (1) FLUE-CURED TOBACCO- Section 316(g) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314b(g)) is amended by adding at the end the following:

    ‘(3) Notwithstanding paragraph (1), the Secretary may permit the sale of a Flue-cured tobacco allotment or quota from one farm in a State to any other farm in the State if a majority of active Flue-cured tobacco producers within the State approve of such sales by a state-wide referendum to be conducted by the Secretary.’.

      (2) OTHER TOBACCO- Section 318(b) of such Act (7 U.S.C. 1314d(b)) is amended in the proviso by inserting after ‘same State’ the following: ‘and, in the case of other kinds of tobacco, any such transfer may be made to a farm in another county in the same State if transfers of such type are approved by a majority of the active producers of that kind of tobacco in the State who vote in a referendum held on the subject’.

      (3) BURLEY TOBACCO- Section 319(l) of such Act (7 U.S.C. 1314e(l)) is amended by striking the last sentence.

    (b) SAME GROWER IN CONTIGUOUS COUNTIES- Section 379(b) of such Act (7 U.S.C. 1379(b)) is amended by striking ‘Burley tobacco poundage quota’ and inserting ‘tobacco quota or allotment’.

SEC. 11. CALCULATION OF NATIONAL MARKETING QUOTA.

    (a) FLUE-CURED TOBACCO- Section 317(a)(1)(B)(ii) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314c(a)(1)(B)(ii)) is amended by inserting before the semicolon the following: ‘, but excluding any exports of unmanufactured tobacco counted under clause (i)’.

    (b) BURLEY TOBACCO- Section 319(c)(3)(A)(ii) of such Act (7 U.S.C. 1314e(l)) is amended by inserting before the semicolon the following: ‘, but excluding any exports of unmanufactured tobacco counted under clause (i)’.

    (c) APPLICATION OF AMENDMENTS- The amendments made by this section shall apply with respect to the 1996 and subsequent crops of Flue-cured and Burley tobacco.

SEC. 12. CLARIFICATION OF AUTHORITY TO ACCESS CIVIL MONEY PENALTIES.

    Section 314 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314) is amended--

      (1) by redesignating subsection (c) as subsection (d); and

      (2) by inserting after subsection (b) the following new subsection:

    ‘(c) The failure by a person to comply with regulations issued by the Secretary governing the marketing, disposition, or handling of tobacco under this part shall subject the person to a penalty at the rate provided in subsection (a).’.

SEC. 13. LEASE AND TRANSFER OF FARM MARKETING QUOTAS FOR BURLEY TOBACCO.

    Section 319(g) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(g)) is amended--

      (1) in paragraph (1), by striking ‘July 1’ each place it appears and inserting ‘September 1’; and

      (2) in paragraph (3)--

        (A) by striking ‘within the three immediately preceding crop years’ in the first sentence and inserting ‘during the current crop year or either of the two immediately preceding crop years’; and

        (B) by striking ‘July 1’ in the second sentence and inserting ‘September 1’.

SEC. 14. LIMITATION ON TRANSFER OF ACREAGE ALLOTMENTS OF OTHER TOBACCO.

    Section 318(g) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314d(g)) is amended by striking ‘ten acres’ and inserting ‘20 acres’.

SEC. 15. GOOD FAITH RELIANCE ON ACTIONS OR ADVICE OF DEPARTMENT REPRESENTATIVES.

    The Agricultural Adjustment Act of 1938 is amended by inserting after section 314A (7 U.S.C. 1314-1) the following new section:

‘SEC. 315. GOOD FAITH RELIANCE ON ACTIONS OR ADVICE OF DEPARTMENT REPRESENTATIVES.

    ‘Notwithstanding any other provision of law, the performance rendered in good faith by a person in good faith in reliance upon action or advice of an authorized representative of the Secretary may be accepted as meeting the requirements of this part.’.

SEC. 16. UNIFORM FORFEITURE DATES FOR FLUE-CURED AND BURLEY TOBACCO.

    (a) SALE OR FORFEITURE OF FLUE-CURED TOBACCO ALLOTMENT OR QUOTA- The first subsection (h) of section 316 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314b) is amended--

      (1) in paragraph (1), by striking ‘before the expiration of the eighteen month period beginning on July 1 of the year in which such crop is planted’ and inserting ‘before February 15 of the year after the end of the marketing year for the planted crop’; and

      (2) in paragraph (2), by striking ‘July 1’ and inserting ‘February 15’.

    (b) MANDATORY SALE OF FLUE-CURED TOBACCO ALLOTMENT OR QUOTA- Section 316A of such Act (7 U.S.C. 1314b-1) is amended--

      (1) in subsection (a), by striking ‘December 1 of the year’ and inserting ‘February 15 of the year’; and

      (2) in subsection (b), by striking ‘July 1’ and inserting ‘February 15’.

    (c) MANDATORY SALE OF BURLEY TOBACCO ALLOTMENT OR QUOTA- Section 316B of such Act (7 U.S.C. 1314b-2) is amended--

      (1) in subsection (a), by striking ‘December 1 of the year’ and inserting ‘February 15 of the year’; and

      (2) in subsection (c)(1), by striking ‘before the expiration of the eighteen month period beginning on July 1 of the year in which such crop is planted’ and inserting ‘before February 15 of the year after the end of the marketing year for the planted crop’.

SEC. 17. SALE OF BURLEY AND FLUE-CURED TOBACCO MARKETING QUOTAS FOR A FARM BY RECENT PURCHASERS.

    The Agricultural Adjustment Act of 1938 is amended by inserting after section 316B (7 U.S.C. 1314b-2) the following new section:

‘SEC. 316C. AUTHORITY FOR RECENT PURCHASER OF A FARM TO SELL BURLEY TOBACCO OR FLUE-CURED TOBACCO MARKETING QUOTAS FOR THE FARM.

    ‘A new owner of a farm that has purchase history of Burley tobacco or Flue-cured tobacco may sell the purchased tobacco quota notwithstanding any limitations on such a sale contained in this part if the sale is completed not later than one year after the purchase date of the farm.’.