[Federal Register Volume 64, Number 162 (Monday, August 23, 1999)]
[Notices]
[Pages 45947-45948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21870]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Farm Service Agency


Tobacco Production and Marketing Information

AGENCY: Farm Service Agency, USDA.

ACTION: Notice of intent to release records and opportunity to opt out 
of the release.

-----------------------------------------------------------------------

SUMMARY: This notice announces the intention of the Secretary of 
Agriculture, pursuant to new legislation, to release certain tobacco 
production and marketing records to State organizations engaged in 
distributing certain private funds to tobacco producers and provides 
notice of the method in which interested parties can opt out of that 
release.

EFFECTIVE DATE: August 19, 1999.

ADDRESSES: Notices should be mailed to Charles Hatcher, Farm Service 
Agency (FSA), Tobacco and Peanuts Division, STOP 0514, 1400 
Independence Avenue, SW, Washington, DC 20250-0514.

FOR FURTHER INFORMATION CONTACT: Misty L. Jones, telephone (202) 720-
0200.

SUPPLEMENTARY INFORMATION: Tobacco growers are required to file various 
records with the Department of Agriculture in connection with the 
operation of the marketing quota program for tobacco operated by USDA 
under the Agricultural Adjustment Act of 1938 (1938 Act). Those records 
are normally required to be kept confidential. Recently, however, some 
tobacco companies have created a $5.15 billion national trust which 
would distribute funds to persons interested in growing cigarette 
tobacco under rules that will be developed by State trusts created for 
that purpose. This $5.15 billion distribution is sometimes referred to 
as the ``Phase II'' settlement to distinguish it from the larger 
``Phase I'' settlement in which tobacco companies have agreed to pay a 
large sum of money to State governments. Some of the Phase I money, in 
some States may also go to tobacco producers. The rules for the 
distribution of monies under both Phase I and Phase II will be up to 
State organizations and not the Federal Government.
    In order to efficiently make the monies available to interested 
parties, some States have sought production data collected by USDA 
under the 1938 Act. As a result, new legislation was recently enacted 
which would allow otherwise confidential information to be made 
available to the States.
    Specifically, the new legislation (Pub. L. 106-47) provides that 
notwithstanding any other provision of law, the Secretary of 
Agriculture may, subject to certain conditions, release any and all 
marketing information submitted by persons relating to the production 
and marketing of tobacco. The information may only be released to State 
trusts or similar organizations engaged in the distribution of national 
trust funds to tobacco producers and other persons with interests 
associated with the production of tobacco. The law provides that the 
information may be released only to the extent that such release is in 
the interest of tobacco producers, as determined by the Secretary of 
Agriculture. The new legislation also provides that, in advance of 
making a release of information, the Secretary of Agriculture shall, to 
the maximum extent practicable, allow, by announcement, a period of at 
least 15 days for parties whose consent would otherwise be required by 
law to effectuate such release, to elect to be exempt from such 
release. In addition, the new law provides that a person who obtains 
information under such a release shall not use the records for any 
other purpose not authorized by the new law; a person who knowingly 
violates this condition on the release of the records is subject to a 
fine of up to $10,000 and imprisonment for up to 1 year, or both. 
Finally, the new law provides that the release allowed by the new law 
shall not apply to records submitted by cigarette manufacturers with 
respect to the production of cigarettes, or which were submitted as 
expected purchase intentions in connection with the establishment of 
national tobacco quotas, or which aggregate the purchase of particular 
buyers of tobacco.

[[Page 45948]]

    Requests have already been made for producer records by State 
trusts which are preparing to make the multi-billion dollar ``Phase 
II'' distribution to farmers. Because these funds could provide much 
needed help to farmers, the Secretary intends to provide the records to 
the requesting organizations, consistent with the new law, except in 
the case of those parties who wish to opt out of the release. Those who 
do wish to opt out of the release should send notice in writing of that 
election to Charles Hatcher, FSA, Tobacco and Peanuts Division, STOP 
0514, 1400 Independence Avenue, SW, Washington, DC 20250-0514. Such 
notice must be received by September 7, 1999.
    As the release only affects farm records, warehouses and buyers of 
tobacco need not file any exemption elections. With respect to 
producers and other parties involved in the growing of tobacco, those 
producers should be advised that a request for an exemption from the 
disclosure could result in a delay in receiving a distribution from the 
State trust, or, depending on the eligibility criteria created by the 
State organizations, an ineligibility to share in the distribution. It 
is therefore not expected that there will be many exemption requests 
filed. Accordingly, it appears that the record collections can be made 
at one location for re-routing to the national record center for 
processing.

    Signed at Washington, DC, on August 18, 1999.
Keith Kelly,
Administrator, Farm Service Agency.
[FR Doc. 99-21870 Filed 8-19-99; 9:43 am]
BILLING CODE 3410-05-P