[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2653 Introduced in House (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.''.
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