[Federal Register Volume 67, Number 54 (Wednesday, March 20, 2002)]
[Rules and Regulations]
[Pages 12829-12831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6711]



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  Federal Register / Vol. 67, No. 54 / Wednesday, March 20, 2002 / 
Rules and Regulations  

[[Page 12829]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1464

RIN 0560-AG61


Tobacco Loss Assistance Program 2001

AGENCY: Commodity Credit Corporation.

ACTION: Final rule.

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SUMMARY: This final rule implements agricultural market assistance 
provisions of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2002, that 
relate to tobacco. This rule will mitigate the reduction in the tobacco 
quotas of the eligible producers.

DATES: Effective March 1, 2002.

FOR FURTHER INFORMATION CONTACT: Ann Wortham, Agricultural Program 
Specialist, Tobacco Branch, FSA, USDA, STOP 0514, 1400 Independence 
Avenue, SW, Washington, DC 20250-0540, Telephone: (202) 720-2715.

SUPPLEMENTARY INFORMATION:

Notice and Comment

    Section 774 of Pub. L. 107-76 requires that the regulations 
necessary to implement Title VIII, Subtitle A of Pub. L. 107-76 be 
issued as soon as practicable and without regard to the notice and 
comment provisions of 5 U.S.C. 553 or the Statement of Policy of the 
Secretary of Agriculture effective July 24, 1971 (36 FR 13804) relating 
to notices of proposed rulemaking and public participation in 
rulemaking. This rule relates to tobacco assistance and implements the 
provisions of Subtitle A.

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and has been designated as ``not significant.''
    The title and number of the Federal assistance program, as found in 
the Catalog of Federal Domestic Assistance, to which this final rule 
applies is:
    10.452--Disaster Reserve Assistance.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because the United States Department of 
Agriculture (USDA) is not required by 5 U.S.C. 553 or any other 
provision of law to publish a notice of proposed rulemaking with 
respect to the subject matter of this rule.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an environmental assessment nor an 
Environmental Impact Statement is needed.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Unfunded Mandates

    This rule contains no Federal mandates under the provisions of 
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) for State, 
local and tribal governments or the private sector. Therefore this rule 
is not subject to the requirements of sections 202 and 205 of the UMRA.

Paperwork Reduction Act

    This rule does not impact the information collection requirements 
of 7 CFR 1464 approved by OMB and assigned OMB control numbers 0560-
0047 and 0560-0076.

Discussion of Final Rule

    This Final Rule will implement requirements of the Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act 2002 (Pub. L. 107-76), which relate to agricultural 
market assistance for agricultural producers. Section 774 of Pub. L. 
107-76 authorizes the Secretary of Agriculture (the Secretary) to use 
funds of the Commodity Credit Corporation (CCC) to make payments to 
eligible persons who own, control or grow tobacco on a farm for which a 
basic quota or allotment for eligible tobacco was established for the 
2001 crop year under part I of subtitle B of title III of the 
Agricultural Adjustment Act of 1938. This eligibility is not affected 
by temporary transfers or undermarketed tobacco.
    Outlays under the programs implemented by this rule will total 
approximately $5 million. Most tobacco operations are small family-
owned affairs and to the extent that the $5 million payment to 
producers and quota-holders defrays tobacco production costs, the 
Tobacco Loss Assistance Program 2001 (TLAP01) will enhance their 
solvency. In the short-term, the cost to the government roughly equals 
the benefits paid to the producers. In the longer term, to the extent 
that these disaster payments protect producers from bankruptcy, the 
payments may stabilize the small farm economy and thereby help achieve 
the public policy objective of the tobacco program.
    A March 1 effective date for this rule was chosen to provide 
flexibility in the event of a delay in publication of the rule.

List of Subjects in Part 1464

    Tobacco Loans, Warehouse Losses, Reporting and record keeping 
requirements.

    Accordingly, Title 7, Part 1464 is amended as follows:

PART 1464--TOBACCO

    5. The authority citation for 7 CFR part 1464 continues to read as 
follows:

    Authority: 7 U.S.C. 1421, 1423, 1441, 1445, 1445-1 and 1445-2; 
15 U.S.C. 714b, 714c.

    6. Add subpart F to read as follows:
Subpart F--Tobacco Loss Assistance Program 2001
Sec.
1464.500   [Reserved]
1464.501   Applicability and basic terms for payment.
1464.502   Administration.
1464.503   Definitions.
1464.504   Eligibility.
1464.505   Signup.
1464.506   [Reserved]
1464.507   Benefits.
1464.508   [Reserved]
1464.509   Offsets and assignments.

[[Page 12830]]

1464.510   Misrepresentation and scheme or device.
1464.511   [Reserved]
1464.512   Cumulative liability.
1464.513   Estate, trusts, and minors.
1464.514   Death, incompetence, or disappearance.
1464.515   Appeals.


Sec. 1464.500  [Reserved]


Sec. 1464.501  Applicability and basic terms for payment.

    (a) This subpart sets forth the terms and conditions of the Tobacco 
Loss Assistance Program 2001 (TLAP01), authorized by Pub. L. 107-76, 
which provides that funds of the Commodity Credit Corporation (CCC) be 
made available to certain persons whose farms had established marketing 
quotas or allotments for the 2001 crop year.
    (b) Subject to the availability of funds, payments for this program 
shall be divided among eligible persons as follows: 33\1/3\ percent of 
the payments will be made to quota owners; 33\1/3\ percent of the 
payments will be made to controllers; and 33\1/3\ percent of the 
payments will be made to growers.


Sec. 1464.502  Administration.

    (a) This subpart shall be administered by CCC under the general 
supervision of the Executive Vice President, CCC (Administrator, FSA) 
and shall be carried out in the field by State and county FSA 
committees (State and county committees, respectively).
    (b) State and county committees, and representatives and employees 
thereof, do not have the authority to modify or waive any of the 
provisions of the regulations in this part.
    (c) The State committee shall take any action required by these 
regulations that has not been taken by the county committee. The State 
committee shall also:
    (1) Correct, or require a county committee to correct, an action 
taken by such county committee that is not in accordance with the 
regulations of this part.
    (2) Require a county committee to withhold taking any action that 
is not in accordance with the regulations of this part.
    (d) No provision or delegation herein to a State or county 
committee shall preclude the Executive Vice President, CCC, or a 
designee or the Administrator, FSA, or a designee, from determining any 
question arising under the program or from reversing or modifying any 
determination made by a State or county committee.
    (e) The Deputy Administrator for Farm Programs, FSA, may authorize 
State and county committees to waive or modify deadlines and other 
program requirements in cases where lateness or failure to meet such 
other requirements does not affect adversely the operation of the 
program.


Sec. 1464.503  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering the Tobacco Loss Assistance Program of 
this subpart. The terms defined in Secs. 718.2 or 723.104 of this title 
shall also be applicable, except where those definitions conflict with 
the definitions set forth in this subpart. The following terms shall 
have the following meanings:
    Deputy Administrator means the Deputy Administrator for Farm 
Programs, Farm Service Agency (FSA), or a designee.
    Controller means, taking into account temporary transfers, that 
person or entity who, as determined by the Deputy Administrator, 
controls the land used to actually produce the eligible tobacco and 
shares in the risk of production.
    Eligible person means with respect to payments under this part, a 
person who owns, controls, or grows tobacco on a farm for which a 
marketing quota or allotment was established under the Agricultural 
Adjustment Act of 1938 for the 2001 crop year.
    Eligible tobacco means each of the following kinds of tobacco: 
fire-cured tobacco, comprising types 22 and 23; dark air-cured tobacco, 
comprising types 35 and 36; and Virginia sun-cured tobacco, comprising 
type 37.
    Grower means person(s) or entities who provide labor to produce 
tobacco and share in the risk of production during the relevant period 
taking into account temporary transfers.
    Payment pounds means the pounds of tobacco for which a person is 
eligible to be paid under this subpart.
    Quota owner means the person or entity who, for the relevant 
period, owns the land for which a quota is established under the 
Agricultural Adjustment Act of 1938, as amended, irrespective of 
temporary transfers or undermarketings.
    Share in the risk of production means having a direct financial 
stake in the success of the crop through a direct share in the actual 
proceeds from the actual marketing of the crop, which share is 
conditional upon the success of that marketing. Farm owners who lease 
their farm land to a tobacco grower for the right to grow tobacco on 
that land and receive a cash payment for such right, regardless of 
whether or not a tobacco crop is marketed, are not considered to share 
in the risk of production. Farm laborers who provide service in 
exchange for a wage and whose payment is not subject to the marketing 
of the tobacco crop are not considered to be sharing in the risk of 
production.
    TLAP01 means the Tobacco Loss Assistance Program, for the 2001 
crop, which is provided for in this subpart.


Sec. 1464.504  Eligibility

    For a person to be considered an ``eligible person'' under this 
subpart, such person must own, control, or grow eligible tobacco on a 
farm with an established ``eligible tobacco'' marketing quota or 
allotment for the 2001 crop year.


Sec. 1464.505  Sign up.

    (a) Eligible persons who wish to apply for TLAP01 funds, must file 
an application with the county FSA office by the date established by 
CCC. However, an application filed late because of hardship may be 
accepted. Acceptance of such applications must be approved by the 
Deputy Administrator, subject to the availability of funds.
    (b) Data furnished by the applicants will be used to determine 
eligibility for program benefits. Furnishing the data is voluntary; 
however, without it program benefits will not be provided.


Sec. 1464.506  [Reserved]


Sec. 1464.507  Benefits.

    (a) TLAP01 payments shall be made to eligible persons not later 
than March 31, 2002 as follows:
    (1) All fire-cured, dark air-cured and Virginia sun-cured tobacco 
funds will be distributed one-third to quota owners; one-third to the 
controller; and one-third to growers.
    (2) The allocated funds will be disbursed to quota owners based on 
the 2001 crop year basic acreage allotment multiplied by National 
Agricultural Statistics Service (NASS) yield, and to controllers and 
growers based on the 2001 crop effective allotment multiplied by the 
yields as specified in the authorizing legislation.
    (b) The payment amount for each kind of eligible tobacco shall be 
equal to 10 cents per eligible payment pound distributed \1/3\ to the 
eligible owner, \1/3\ to the eligible controller (if any), and \1/3\ to 
the eligible grower (if any). Persons who fit more than one category 
can accumulate shares.
    (c) In the case where a payment to a farm is disputed CCC may 
require that all interested parties agree to the resolution of the 
dispute before any payment is made and may delay

[[Page 12831]]

payments to that farm until any such disputes are resolved. Also, so 
that payments may be made expeditiously in a manner that is 
administratively efficient, CCC may in its sole discretion exclude 
payments to a person who does not file a timely claim.


Sec. 1464.508  [Reserved]


Sec. 1464.509  Offsets and assignments.

    (a) Any payment or portion thereof made to any person under this 
subpart shall be made without regard to questions of title under State 
law and without regard to any claim or lien against the related crop, 
or proceeds thereof. The regulations governing offsets and withholdings 
found at part 1403 of this chapter shall be applicable to payments made 
under this part.
    (b) Eligible persons may assign TLAP01 payments as provided in part 
1404 of this chapter.


Sec. 1464.510  Misrepresentation and scheme or device.

    (a) A producer who erroneously represents any fact affecting a 
program determination made in accordance with this part shall not be 
entitled to payments and must refund all payments, plus interest 
determined in accordance with part 1403 of this chapter.
    (b) A producer who is determined to have knowingly:
    (1) Adopted any scheme or device that tends to defeat the purpose 
of the program;
    (2) Made any fraudulent representation; or
    (3) Misrepresented any fact affecting a program determination, 
shall refund to CCC all payments received under this subpart, plus 
interest determined in accordance with part 1403 of this chapter. The 
subject producer's interest in all applications shall be terminated.


Sec. 1464.511  [Reserved]


Sec. 1464.512  Cumulative liability.

    The liability of any person for any penalty under this part or for 
any refund to CCC or related charge arising in connection therewith 
shall be in addition to any other liability of such person under any 
civil or criminal fraud statute or any other provision of law 
including, but not limited to, 18 U.S.C. 286, 287, 371, 641, 1001; 15 
U.S.C. 714m; and 31 U.S.C. 3729.


Sec. 1464.513  Estates, trusts, and minors.

    (a) Program documents executed by persons legally authorized to 
represent estates or trusts will be accepted only if such person 
furnishes evidence of the authority to execute such documents.
    (b) A minor who is a producer shall be eligible for assistance 
under this subpart only if such person meets one of the following 
requirements:
    (1) The right of majority has been conferred on the minor by court 
proceedings or by statute;
    (2) A guardian has been appointed to manage the minor's property 
and the applicable program documents are executed by the guardian; or
    (3) A bond is furnished under which the surety guarantees any loss 
incurred for which the minor would be liable had the minor been an 
adult.


Sec. 1464.514  Death, incompetence, or disappearance.

    In the case of death, incompetence, or disappearance, of any person 
who is eligible to receive assistance in accordance with this part, 
such person or persons specified in part 707 of this title may receive 
such assistance.


Sec. 1464.515  Appeals.

    The appeal, reconsideration, or review of determinations made under 
this part must be in accordance with parts 11 and 780 of this title. 
The eligibility provisions for kinds of tobacco under this subpart are 
not subject to appeal rights.

    Signed at Washington, DC, on March 8, 2002.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 02-6711 Filed 3-18-02; 9:46 am]
BILLING CODE 3410-05-P