MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE FRUCTOSE.

SEC. 902. MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE FRUCTOSE. Subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) is amended by adding at the end the following new part: “PART VII— MARKETING QUOTAS—SUGAR AND CRYSTALLINE FRUCTOSE “SEC. 359a. INFORMATION REPORTING. “(a) Duty to Report.— All cane sugar refiners and sugar beet processors and all manufacturers of crystalline fructose from corn (hereafter in this part referred to as ‘crystalline fructose’) shall furnish the Secretary, on a monthly basis, such information as the Secretary may require with respect to the person’s importation,104 STAT. 3480 distribution, and stock levels of sugar or crystalline fructose, respectively. “(b) Penalty.— Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation. “(c) Monthly Reports.— Taking into consideration the information received under subsection (a), the Secretary shall publish on a monthly basis composite data on imports, distribution, and stock levels of sugar and crystalline fructose. “SEC. 359b. MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE FRUCTOSE. “(a) Sugar Estimates.— “(1) In general.— Before the beginning of each of the fiscal years 1992 through 1996, the Secretary shall estimate— “(A) the quantity of sugar that will be consumed in the customs territory of the United States during the fiscal year (other than sugar imported for purposes other than human consumption); “(B) the quantity of sugar that will be available from carry-in stocks or from domestically-produced sugarcane and sugar beets for consumption in the United States during the year; and “(C) the quantity of sugar that will be imported for consumption during the year (other than sugar imported for purposes other than human consumption), based on the difference between— “(i) the quantity of estimated consumption; and “(ii) the quantity of sugar estimated to be available from domestically-produced sugarcane and sugar beets and from carry-in stocks. “(2) Quarterly reestimates.— The Secretary shall make quarterly reestimates of sugar consumption, availability, and imports for a fiscal year no later than the beginning of each of the second through fourth quarters of the fiscal year. “(b) Sugar Allotments.— “(1) In general.— For any fiscal year in which the Secretary estimates, under subsection (a), that imports of sugar for consumption in the United States will be less than 1,250,000 short tons, raw value, the Secretary shall establish for that year appropriate allotments under section 359c for the marketing by processors of sugar processed from domestically-produced sugarcane and sugar beets in a manner that is fair, efficient, and equitable to producers, processors, and refiners, at a level that the Secretary estimates will result in imports of sugar of not less than 1,250,000 short tons, raw value, for that year. “(2) Products.— The Secretary may include products of sugar in the allotments under paragraph (1) if the Secretary determines it to be appropriate for purposes of this part. “(c) Crystalline Fructose Allotments.— For any fiscal year in which the Secretary establishes allotments for the marketing of sugar under section 359c, the Secretary shall establish for that year appropriate allotments for the marketing by manufacturers of crystalline fructose manufactured from com, at a total level not to exceed the equivalent of 200,000 tons of sugar, raw value, during the104 STAT. 3481 fiscal year, in a manner that is fair, efficient, and equitable to manufacturers. “(d) Prohibitions.— “(1) Sugar.— “(A) Exceeding allocation.— At any time allotments are in effect and allocated to processors under section 359d, the total of— “(i) the quantity of sugar marketed by a processor, plus “(ii) the quantity of sugar pledged as collateral by the processor for a price support loan under section 206 of the Agricultural Act of 1949, shall not exceed the quantity of the allocation of the allotment made to the processor. “(B) Exceptions.— Subparagraph (A) shall not apply— “(i) to the marketing during a fiscal year of sugar pledged in that fiscal year as collateral for a price support loan under section 206 of the Agricultural Act of 1949 after the sugar has been subsequently redeemed; or “(ii) to any sale of sugar by a processor to another processor made to enable the other processor to fulfill the quantity of the allocation of the allotment made to the other processor. “(2) Crystalline fructose.— At any time crystalline fructose allotments are in effect for manufacturers under subsection (c), no manufacturer may market crystalline fructose in excess of the manufacturer’s allotment. No restrictions or allotments shall be established on the marketings of any liquid fructose produced from corn. “(3) Civil penalty.— Any processor who violates paragraph (1) or manufacturer who violates paragraph (2) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the United States market value, at the time of the commission of the violation, of that quantity of sugar or crystalline fructose involved in the violation. “(4) Definition of market.— For purposes of this part, the term ‘market’ shall mean to sell or otherwise dispose of in commerce in the United States. “SEC. 359c. ESTABLISHMENT OF MARKETING ALLOTMENTS. “(a) In General.— The Secretary shall establish marketing allotments for sugar for any fiscal year in which the allotments are required under section 359b(b) in accordance with this section. “(b) Overall Allotment Quantity.— “(1) In general.— The Secretary shall establish the overall quantity of sugar to be allotted for the fiscal year (hereafter in this part referred to as the ‘overall allotment quantity’) by deducting from the estimated sugar consumption for the fiscal year, as determined under section 359b(a)— “(A) 1,250,000 short tons, raw value (representing minimum imports of sugar for consumption in the United States during the fiscal year); and “(B) carry-in stocks of sugar, including sugar in Commodity Credit Corporation inventory. (2) Adjustment.— The Secretary shall adjust the overall allotment quantity to the maximum extent practicable to prevent104 STAT. 3482 the accumulation of sugar acquired by the Commodity Credit Corporation. “(c) Allotment.— The overall allotment quantity for the fiscal year shall be allotted among— “(1) sugar derived from sugar beets; and “(2) sugar derived from sugarcane. “(d) Percentage Factors.— “(1) In general.— The Secretary shall establish percentage factors for the overall beet sugar and cane sugar allotments applicable for a fiscal year. The Secretary shall establish the percentage factors in a fair and equitable manner on the basis of past marketings of sugar (considering for such purposes the marketings of sugar processed from sugarcane and sugar beets of any or all of the 1985 through 1989 crops), processing and refining capacity, and the ability of processors to market the sugar covered under the allotments. “(2) Publication.— The Secretary shall publish these percentage factors in the Federal Register, along with a description of the Secretary’s reasons for establishing the factors, as provided in section 359h(c). “(e) Marketing Allotment.— The marketing allotment for sugar derived from sugarcane and the marketing allotment for sugar derived from sugar beets for a fiscal year, in each case, shall be a quantity equal to the product of multiplying the overall allotment quantity for the fiscal year by the percentage factor established by the Secretary under subsection (d)(1) for the allotment. “(f) State Sugarcane Allotment.— The allotment for sugar derived from sugarcane shall be further allotted among the 5 States in the United States in which sugarcane is produced in a fair and equitable manner on the basis of past marketings of sugar (considering for such purposes the average of marketings of sugar processed from sugarcane in the 2 highest years of production from each State from the 1985 through 1989 crops), processing capacity, and the ability of processors to market the sugar covered under the allotments. “(g) Adjustment of Marketing Allotments.— “(1) In general.— The Secretary shall, based on reestimates under section 359b(a)(2), adjust upward or downward marketing allotments established under subsections (a) through (f) in a fair and equitable manner, or suspend the allotments, as the Secretary determines appropriate, to reflect changes in estimated sugar consumption, availability, or imports. “(2) Allocation to processors.— In the case of any increase or decrease in an allotment, each allocation to a processor of the allotment under section 359d, and each proportionate share established with respect to the allotment under section 359f(b), shall be increased or decreased by the same percentage that the allotment is increased or decreased. “(3) Reductions.— Whenever a marketing allotment for a fiscal year is required to be reduced during the fiscal year under this paragraph— “(A) if the quantity of the sugar marketed, including sugar pledged as collateral for a price support loan under section 206 of the Agricultural Act of 1949, for the fiscal year at the time of the reduction under the allotment by all processors covered by the allotment exceeds the reduced104 STAT. 3483 allotment, the quantity of the excess sugar marketed shall be deducted— “(i) if beet sugar is involved, from the marketing allotment, if any, next established for beet sugar; or “(ii) if cane sugar is involved, from the marketing allotment next established for the State; and “(B) if the quantity of sugar marketed, including sugar pledged as collateral for a price support loan under section 206 of the Agricultural Act of 1949, for the fiscal year at the time of the reduction by any individual processor covered by the allotment exceeds the processor’s reduced allocation, the quantity of the excess sugar marketed shall be deducted from the allocation of an allotment, if any, next established for the processor. “(h) Filling Sugarcane and Sugar Beet Allotments.— Except as otherwise provided in section 359e, each marketing allotment of sugarcane established under this section may only be filled with sugar processed from domestically grown sugarcane, and each marketing allotment of sugar beets established under this section may only be filled with sugar processed from domestically grown sugar beets. “SEC. 359d. ALLOCATION OF MARKETING ALLOTMENTS. “(a) In General.— “(1) Allocation to processors.— Whenever marketing allotments are established for a fiscal year under section 359c, in order to afford all interested persons an equitable opportunity to market sugar under an allotment, the Secretary shall allocate each such allotment among the processors covered by the allotment. “(2) Hearing and notice.— “(A) Cane sugar.— The Secretary shall make allocations for cane sugar after such hearing and on such notice as the Secretary by regulation may prescribe, in such manner and in such quantities as to provide a fair, efficient, and equitable distribution of the allocations by taking into consideration processing capacity, past marketings of sugar, and the ability of each processor to market sugar covered by that portion of the allotment allocated. Each such allocation shall be subject to adjustment under section 359c(g). “(B) Beet sugar.— The Secretary shall make allocations for beet sugar after such hearing and on such notice as the Secretary by regulation may prescribe, in such manner and in such quantities as to provide a fair, efficient, and equitable distribution of the allocations by taking into consideration processing capacity, past marketings of sugar (considering for the purposes the marketings of sugar processed from sugar beets of any or all of the 1985 through 1989 crops), and the ability of each processor to market sugar covered by that portion of the allotment allocated. Each such allocation shall be subject to adjustment under section 359c(g). “(b) Filling Cane Sugar Allotments.— Except as otherwise provided in section 359e, the marketing allotment established for cane sugar under this part for a fiscal year may be filled only with sugar processed from sugarcane grown in the State covered by the allotment. 104 STAT. 3484 “SEC. 359e. ASSIGNMENTS OF DEFICITS. “(a) Estimates of Marketing.— At any time allotments are in effect under this part, the Secretary, from time to time, shall determine whether (in view of then-current inventories of sugar, the estimated production of sugar and expected marketings, and other pertinent factors) processors of sugarcane in each State covered by an allotment will be able to market the sugar covered by the allotment applicable to them and whether processors of sugar beets will be able to market sugar covered by the portion of the beet sugar allotment applicable to them. “(b) Reassignment of Deficits.— “(1) Cane sugar.— If the Secretary determines that the sugarcane processors subject to a State allotment will be unable to market the State’s allotment for the fiscal year— “(A) the Secretary first shall reassign the estimated quantity of the deficit proportionately to the allocations for other processors within that State; “(B) if after the reassignments the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit proportionately to the allotments for other cane sugar States, depending on the capacity of each other State to fill the portion of the deficit to be assigned to it, with the reassigned quantity to each State to be allocated among processors in that State in proportion to the allocations of the processors; and “(C) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports. “(2) Beet sugar.— If the Secretary determines that a sugar beet processor subject to an allotment will be unable to market that allotment— “(A) the Secretary first shall reassign the estimated quantity of the deficit proportionately to the allotments for other sugar beet processors, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it; and “(B) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports. “(3) Corresponding increase.— The allocation of each processor receiving a reassigned quantity of an allotment under this subsection for a fiscal year shall be increased to reflect the reassignment. “SEC. 359f. PROVISIONS APPLICABLE TO PRODUCERS. “(a) Processor Assurances.— Whenever allotments for a fiscal year are allocated to processors under section 359d, the Secretary shall obtain from the processors such assurances as the Secretary considers adequate that the allocation will be shared among producers served by the processor in a fair and equitable manner that adequately reflects producers’ production histories. Any dispute between a processor and a producer, or group of producers, with respect to the sharing of the processor’s allocation shall be resolved through arbitration by the Secretary on the request of either party. “(b) Proportionate Shares of Certain Allotments.— “(1) In general.— 104 STAT. 3485 “(A) States affected.— In any case in which a State allotment is established under section 359c(f) and there are in excess of 250 producers in such State, the Secretary shall make a determination under subparagraph (B). “(B) Determination.— The Secretary shall determine, for each State allotment described in subparagraph (A), whether the production of sugar, in the absence of proportionate shares, will be greater than the quantity needed to enable processors to fill the allotment and provide a normal carryover inventory. “(2) Establishment of proportionate shares.— If the Secretary determines under paragraph (1) that the quantity of sugar processed from all crops by all processors covered by a State allotment for a fiscal year will be in excess of the quantity needed to enable processors to fill the allotment for the fiscal year and provide a normal carryover inventory, the Secretary shall establish proportionate shares for the crop of sugarcane that is harvested during the fiscal year the allotment is in effect as provided in this subsection. Each such proportionate share shall be subject to adjustment under section 359c(g). “(3) Method of determining.— For purposes of determining proportionate shares for any crop of sugarcane: “(A) The Secretary shall establish the State’s per-acre yield goal for a crop at a level (not less than the average per-acre yield in the State for the preceding 5 years, as determined by the Secretary) that will ensure an adequate net return per pound to producers in the State, taking into consideration any available production research data that the Secretary deems relevant. “(B) The Secretary shall convert the State allotment for the fiscal year involved into a State acreage allotment for the crop by dividing the State allotment by the per-acre yield goal for the State, as established under subparagraph (A). “(C) The Secretary shall establish a uniform reduction percentage for the crop by dividing the State acreage allotment, as determined for the crop under subparagraph (B), by the sum of all acreage bases in the State, as determined by the Secretary, that the Secretary estimates would otherwise be harvested for the production of the crop of sugarcane. “(D) The uniform reduction percentage for the crop, as determined under subparagraph (C), shall be applied to the acreage base for each farm covered by the State allotment to determine the farm’s proportionate share for the crop. “(4) Acreage base.— For purposes of this subsection, the acreage base for each sugarcane-producing farm shall be determined by the Secretary, as follows: “(A) The acreage base for any crop shall be the number of acres that is equal to the average of the acreage planted and considered planted for harvest for sugar or seed on the farm in each of the 5 crop years preceding the crop year. “(B) Acreage that producers on a farm were unable to harvest to sugarcane for sugar or seed because of drought, flood, other natural disaster, or other condition beyond the control of the producers shall be considered as harvested to sugarcane for sugar or seed for purposes of this paragraph. 104 STAT. 3486 “(5) Violation.— “(A) In general.— Whenever proportionate shares are in effect in a State for a crop of sugarcane, no producer in the State knowingly may harvest for sugar or seed an acreage of sugarcane of the crop in excess of the farm’s proportionate share for the crop or otherwise violate proportionate share regulations issued by the Secretary under section 359h(a). “(B) Civil penalty.— Any producer who violates subparagraph (A) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the United States market value, at the time of the commission of the violation, of that quantity of sugar involved in the violation. The quantity of sugar involved shall be determined based on the per-acre yield goal established under paragraph (3). “(6) Waiver.— Notwithstanding the preceding subparagraph, the Secretary may authorize the county and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other proportionate share requirements in cases in which lateness or failure to meet the other requirements does not affect adversely the operation of proportionate shares. “SEC. 359g. SPECIAL RULES. “(a) Transfer of Production History.— For the purpose of establishing proportionate shares for producers under section 359f, the Secretary, on application of any producer, may transfer the production history of land owned, operated, or controlled by the producers to any other parcels of land of the applicant. “(b) Reservation of Production History.— If for reasons beyond the control of an owner of a farm, the owner is unable to use all or a portion of the proportionate share established for the farm under section 359f, the Secretary may reserve for a period of not more than 3 consecutive years the production history of the farm to the extent of the proportionate share involved. The proportionate share may be redistributed to other farm owners or operators, but no production history shall accrue to the other farm owners or operators, by virtue of the redistribution of the proportionate share so redistributed. “(c) Revisions of Allocations and Proportionate Shares.— The Secretary, after such hearing and notice as the Secretary by regulation may prescribe, may revise or amend any allocation of a marketing allotment under section 359d, or any proportionate share established for a farm under section 359f, on the same basis as the initial allocation or proportionate share was established. “SEC. 359h. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY’S DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED STATES ATTORNEYS. “(a) Regulations.— “(1) In general.— The Secretary shall issue such regulations as may be necessary to carry out the authority vested in the Secretary in administering the marketing allotment program under this part. “(2) Prior consultations required.— In addition to taking such other action as may be required under section 551 through 559 of title 5, United States Code, prior to proposing any regula-104 STAT. 3487tions under paragraph (1), the Secretary shall consult with representatives of domestic sugar processors and producers with regard to ensuring that the regulations achieve the objectives of this part. The results of the consultations shall be published in the Federal Register, along with the proposed regulations. “(b) Violation.— Any person knowingly violating any regulation of the Secretary issued under subsection (a) shall be subject to a civil penalty of not more than $5,000 for each violation. “(c) Publication in Federal Register.— Each determination issued by the Secretary to establish, adjust, or suspend allotments under this part shall be promptly published in the Federal Register and shall be accompanied by a statement of the reasons for the determination. “(d) Jurisdiction of Courts; United States Attorneys.— “(1) Jurisdiction of courts.— The several district courts of the United States are vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating, this part or any regulation issued thereunder. “(2) United states attorneys.— Whenever the Secretary shall so request, it shall be the duty of the several United States attorneys, in their respective districts, to institute proceedings to enforce the remedies and to collect the penalties provided for in this part. The Secretary may elect not to refer to a United States attorney any violation of this part or regulation when the Secretary determines that the administration and enforcement of this part would be adequately served by written notice or warning to any person committing the violation. “(e) Nonexclusivity of Remedies.— The remedies and penalties provided for in this part shall be in addition to, and not exclusive of, any remedies or penalties existing at law or in equity. “SEC. 359i. APPEALS. “(a) In General.— An appeal may be taken to the Secretary from any decision under section 359d establishing allocations of marketing allotments, or under section 359f, by any person adversely affected by reason of any such decision. “(b) Procedure.— “(1) Notice of appeal.— Any such appeal shall be taken by filing with the Secretary, within 20 days after the decision complained of is effective, notice in writing of the appeal and a statement of the reasons therefor. Unless a later date is specified by the Secretary as part of the Secretary’s decision, the decision complained of shall be considered to be effective as of the date on which announcement of the decision is made. The Secretary shall deliver a copy of any notice of appeal to each person shown by the records of the Secretary to be adversely affected by reason of the decision appealed, and shall at all times thereafter permit any such person to inspect and make copies of appellant’s reasons for the appeal and shall on application permit the person to intervene in the appeal. “(2) Hearing.— The Secretary shall provide each appellant an opportunity for a hearing. The Secretary shall appoint an administrative law judge to conduct a hearing on the record on each appeal under this section. In all other respects, each appeal under this section shall be subject to sections 551 through 559, and 701 through 706, of title 5, United States Code. 104 STAT. 3488 “SEC. 359j. ADMINISTRATION. “(a) Use of Certain Agencies.— In carrying out this part, the Secretary may use the services of local committees of sugar beet or sugarcane producers, sugarcane processors, or sugar beet processors, State and county committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), and the departments and agencies of the United States Government. “(b) Use of Commodity Credit Corporation.— The Secretary shall use the services, facilities, funds, and authorities of the Commodity Credit Corporation to carry out sections 359a through 359i. “(c) Definition of United States and State.— Notwithstanding section 301, for purposes of this part, the terms ‘United States’ and ‘State’ means the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.”.