TOBACCO PROGRAM.

SEC. 1106. TOBACCO PROGRAM. (a) Domestic Marketing Assessment.— Part I of 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 section: “SEC. 320C. DOMESTIC MARKETING ASSESSMENT. “(a) Certification.— A domestic manufacturer of cigarettes shall certify to the Secretary, for each calendar year, the percentage of the quantity of tobacco used by the manufacturer to produce cigarettes during the year that is produced in the United States. “(b) Penalties.— “(1) In general.— Subject to subsection (f), a domestic manufacturer of cigarettes that has failed, as determined by the Secretary after notice and opportunity for a hearing, to use in the manufacture of cigarettes during a calendar year a quantity of tobacco grown in the United States that is at least 75 percent of the total quantity of tobacco used by the manufacturer, or to comply with subsection (a), shall be subject to the requirements of subsections (c), (d), and (e). “(2) Failure to certify.— For purposes of this section, if a manufacturer fails to comply with subsection (a), the manufacturer shall be presumed to have used only imported tobacco in the manufacture of cigarettes produced by the manufacturer. “(3) Reports and records.— “(A) In general.— The Secretary shall require manufacturers of domestic cigarettes to make such reports and maintain such records as are necessary to carry out this section. If the reports and records are insufficient, the Secretary may request other persons to provide supplemental information. “(B) Examinations.— For the purpose of ascertaining the correctness of any report or record required under this section, or of obtaining further information required under this section, the Secretary and the Office of Inspector General may examine such records, books, and other materials as the Secretary has reason to believe may be relevant. In the case of a manufacturer of domestic cigarettes, the Secretary may charge a fee to the manufacturer to cover the reasonable costs of any such examination. “(C) Penalties.— Any person who fails to provide information required under this paragraph or who provides false information under this paragraph shall be subject to section 1001 of title 18, United States Code. “(D) Confidentiality.— Section 320A(c) shall apply to information submitted by manufacturers of domestic cigarettes and other persons under this paragraph. “(E) Disclosure.— Notwithstanding any other provision of law, information on the percentage or quantity of domestic or imported tobacco in cigarettes or on the volume of cigarette production that is submitted under this section shall be exempt from disclosure under section 552 of title 5, United States Code. “(c) Domestic Marketing Assessment.— “(1) In general.— A domestic manufacturer of cigarettes described in subsection (b) shall remit to the Commodity Credit 107 STAT. 319Corporation a nonrefundable marketing assessment in accordance with this subsection. “(2) Amount.— The amount of an assessment imposed on a manufacturer under this subsection shall be determined by multiplying— “(A) the quantity by which the quantity of imported tobacco used by the manufacturer to produce cigarettes during a preceding calendar year exceeds 25 percent of the quantity of all tobacco used by the manufacturer to produce cigarettes during the preceding calendar year; by “(B) the difference between— “(i) ½ of the sum of— “(I) the average price per pound received by domestic producers for Burley tobacco during the preceding calendar year; and “(II) the average price per pound received by domestic producers for Flue-cured tobacco during the preceding calendar year; and “(ii) the average price per pound of unmanufactured imported tobacco during the preceding calendar year, as determined by the Secretary. “(3) Collection.— An assessment imposed under this subsection shall be— “(A) collected by the Secretary and transmitted to the Commodity Credit Corporation; and “(B) enforced in the same manner as provided in section 320B. “(d) Purchase of Burley Tobacco.— “(1) In general.— A domestic manufacturer of cigarettes described in subsection (b) shall purchase from the inventories of the producer-owned cooperative marketing associations for Burley tobacco described in section 320B(a)(2), at the applicable list price published by the association, the quantity of tobacco described in paragraph (2). “(2) Quantity.— Subject to paragraph (3), the quantity of Burley tobacco required to be purchased by a manufacturer during a calendar year under this subsection shall equal ½2 of the quantity of imported tobacco used by the manufacturer to produce cigarettes during the preceding calendar year that exceeds 25 percent of the quantity of all tobacco used by the manufacturer to produce cigarettes during the preceding calendar year. “(3) Limitation.— If the total quantity of Burley tobacco required to be purchased by all manufacturers under paragraph (2) would reduce the inventories of the producer-owned cooperative marketing associations for Burley tobacco to less than the reserve stock level for Burley tobacco, the Secretary shall reduce the quantity of tobacco required to be purchased by manufacturers under paragraph (2), on a pro rata basis, to ensure that the inventories will not be less than the reserve stock level for Burley tobacco. “(4) Noncompliance.— If a manufacturer fails to purchase from the inventories of the producer-owned cooperative marketing associations the quantity of Burley tobacco required under this subsection, the manufacturer shall be subject to a penalty of 75 percent of the average market price (calculated to the nearest whole cent) for Burley tobacco for the immediately 107 STAT. 320preceding year on the quantity of tobacco as to which the failure occurs. “(5) Purchase requirements.— Tobacco purchased by a manufacturer under this subsection shall not be included in determining the quantity of tobacco purchased by the manufacturer under section 320B. “(e) Purchase of Flue-Cured Tobacco.— “(1) In general.— A domestic manufacturer of cigarettes described in subsection (b) shall purchase from the inventories of the producer-owned cooperative marketing association for Flue-cured tobacco described in section 320B(a)(2), at the applicable list price published by the association, the quantity or tobacco described in paragraph (2). “(2) Quantity.— Subject to paragraph (3), the quantity of Flue-cured tobacco required to be purchased by a manufacturer during a calendar year under this subsection shall equal Va of the quantity of imported tobacco used by the manufacturer to produce cigarettes during the preceding calendar year that exceeds 25 percent of the quantity of all tobacco used by the manufacturer to produce cigarettes during the preceding calendar year. “(3) Limitation.— If the total quantity of Flue-cured tobacco required to be purchased by all manufacturers under paragraph (2) would reduce the inventories of the producer-owned cooperative marketing association for Flue-cured tobacco to less than the reserve stock level for Flue-cured tobacco, the Secretary shall reduce the quantity of tobacco required to be purchased by manufacturers under paragraph (2), on a pro rata basis, to ensure that the inventories will not be less than the reserve stock level for Flue-cured tobacco. “(4) Noncompliance.— If a manufacturer fails to purchase from the inventories of the producer-owned cooperative marketing association the quantity of Flue-cured tobacco required under this subsection, the manufacturer shall be subject to a penalty of 75 percent of the average market price (calculated to the nearest whole cent) for Flue-cured tobacco for the immediately preceding year on the quantity of tobacco as to which the failure occurs. “(5) Purchase requirements.— Tobacco purchased by a manufacturer under this subsection shall not be included in determining the quantity of tobacco purchased by the manufacturer under section 320B. “(f) Crop Losses Due to Disasters.— “(1) In general.— If the Secretary, in consultation with producer-owned cooperative marketing associations, determines that because of drought, insect or disease infestation, or other natural disaster, or other condition beyond the control of producers, the total quantity of a crop of domestic Burley tobacco or Flue-cured tobacco that is harvested and suitable for marketing is substantially less than the expected yield for the crop, and that pool inventories for the kind of tobacco involved have been depleted, effective for the calendar year following the year in which the crop loss occurs, the Secretary may reduce the minimum percentage of domestic tobacco specified in subsection (a) to a percentage below 75 percent, as determined by the Secretary, that reflects the reduced availability of domestic supplies of the kind of tobacco involved. 107 STAT. 321 “(2) Determination of expected yield.— For purposes of paragraph (1), the Secretary shall determine the expected yield for a crop of Burley tobacco or Flue-cured tobacco by taking into consideration— “(A) the total acreage planted to the crop (including acreage that the producers were prevented from planting because of a condition referred to in paragraph (1)); and “(B) normal farm yields established for the crop. “(3) Deadline for determinations.— The Secretary shall make determinations under paragraph (1) about crop losses and announce the reduced percentage of the domestic tobacco pool not later than November 30 of the year in which the applicable crop of Burley tobacco or Flue-cured tobacco is harvested.”. (b) Budget Deficit Assessment.— (1) In general.— Section 106 of the Agricultural Act of 1949 (7 U.S.C. 1445) is amended by adding at the end the following new subsection: “(h) (1) Effective only for each of the 1994 through 1998 crops of tobacco, an importer of tobacco that is produced outside the United States shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to the product obtained by multiplying— “(A) the number of pounds of tobacco that is imported by the importer; by “(B) the sum of— “(i) the per pound marketing assessment imposed on purchasers of domestic Burley tobacco pursuant to subsection (g); and “(ii) the per pound marketing assessment imposed on purchasers of domestic Flue-cured tobacco pursuant to subsection (g). “(2) An assessment imposed under this subsection shall be paid by the importer. “(3) (A) The importer shall remit the assessment at such time and in such manner as may be prescribed by the Secretary. “(B) If the importer fails to comply with subparagraph (A), the importer shall be liable, in addition, for a marketing penalty at a rate equal to 37.5 percent of the sum of the average market price (calculated to the nearest whole cent) of Flue-cured and Burley tobacco for the immediately preceding year on the quantity of tobacco as to which the failure occurs. “(C) This subsection shall be enforced in the same manner as subparagraphs (B) and (C) of paragraph (1), and paragraphs (2) and (3), of section 106A(h). “(4) Any penalty collected by the Secretary under this subsection shall be deposited for use by the Commodity Credit Corporation.” (2) Importer assessments for no net cost tobacco fund.— Section 106A of such Act (7 U.S.C. 1445–1) is amended— (A) in subsection (c), by inserting “and importers” after “purchasers”; (B) in subsection (d)(1)(A)— (i) by striking “and” at the end of clause (i); and (ii) by inserting after clause (ii) the following new clause: 107 STAT. 322 “(iii) each importer of Flue-cured or Burley tobacco shall pay to the appropriate association, for deposit in the Fund of the association, an assessment, in an amount that is equal to the product obtained by multiplying— “(I) the number of pounds of tobacco that is imported by the importer; by “(II) the sum of the amount of per pound producer contributions and purchaser assessments that are payable by domestic producers and purchasers of Flue-cured and Burley tobacco under clauses (i) and (ii); and”; (C) in subsection (d)(2)— (i) by inserting “or importer” after “or purchaser”; (ii) by striking “and” at the end of subparagraph (B); (iii) by inserting “and” at the end of subparagraph (C); and (iv) by adding at the end the following new subparagraph: “(D) if the tobacco involved is imported by an importer, from the importer.”; and (D) in subsection (h)(1)— (i) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; and (ii) by inserting after subparagraph (A) the following new subparagraph: “(B) Each importer who fails to pay to the association an assessment as required by subsection (d)(2) at such time and in such maimer as may be prescribed by the Secretary, shall be liable, in addition to any amount due, for a marketing penalty at a rate equal to 75 percent of the average market price (calculated to the nearest whole cent) for the respective kind of tobacco for the immediately preceding year on the quantity of tobacco as to which the failure occurs.”. (3) Importer assessments to no net cost tobacco account.— Section 106B of such Act (7 U.S.C. 1445–2) is amended— (A) in subsection (c)(1), by striking “producers and purchasers” and inserting “producers, purchasers, and importers”; (B) in subsection (d)(1)— (i) by designating the first and second sentences as subparagraphs (A) and (B), respectively; and (ii) by adding at the end the following new subparagraph: “(C) The Secretary shall also require (in lieu of any requirement under section 106A(d)(1)) that each importer of Flue-cured and Burley tobacco shall pay to the Corporation, for deposit in the Account of the association, an assessment, as determined under paragraph (2) and collected under paragraph (3), with respect to purchases of all such kinds of tobacco imported by the importer.”; (C) in subsection (d)(2), by adding at the end the following new subparagraph: “(C) The amount of the assessment to be paid by importers shall be an amount that is equal to the product obtained by multiplying— 107 STAT. 323 “(i) the number of pounds of tobacco that is imported by the importer; by “(ii) the sum of the amount of per pound producer and purchaser assessments that are payable by domestic producers and purchasers of the respective kind of tobacco under this paragraph”; (D) in subsection (d)(3), by adding at the end the following new subparagraph: “(D) If Flue-cured or Burley tobacco is imported by an importer, any importer assessment required by subsection (d) shall be collected from the importer.”; and (E) in subsection (j)(1)— (i) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; and (ii) by inserting after subparagraph (A) the following new subparagraph: “(B) Each importer who fails to pay to the Corporation an assessment as required by subsection (d) at such time and in such manner as may be prescribed by the Secretary, shall be liable, in addition to any amount due, to a marketing penalty at a rate equal to 75 percent of the average market price (calculated to the nearest whole cent) for the respective kind of tobacco for the immediately preceding year on the quantity of tobacco as to which the failure occurs.”. (c) Fees for Inspecting Imported Tobacco.— The second sentence of section 213(d) of the Tobacco Adjustment Act of 1983 (7 U.S.C. 511r(d)) is amended by inserting before the period at the end the following: “, and which shall be comparable to fees and charges fixed and collected for services provided in connection with tobacco produced in the United States”. (d) Extension of Quota Reduction Floors.— (1) Burley tobacco.— Section 319(c)(3)(C)(ii) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(c)(3)(C)(ii)) is amended— (A) by striking “1993” and inserting “1996”; and (B) by inserting before the period at the end the following: “, except that, in the case of each of the 1995 and 1996 crops of Burley tobacco, the Secretary may waive the requirements of this clause if the Secretary determines that the requirements would likely result in inventories of the producer-owned cooperative marketing associations for Burley tobacco described in section 320B(a)(2) to exceed 150 percent of the reserve stock level for Burley tobacco”. (2) Flue-cured tobacco.— Section 317(a)(1)(C)(ii) of such Act (7 U.S.C. 1314c(a)(1)(C)(ii)) is amended— (A) by striking “1993” and inserting “1996”; and (B) by inserting before the period at the end the following: “, except that, in the case of each of the 1995 and 1996 crops of Flue-cured tobacco, the Secretary may waive the requirements of this clause if the Secretary determines that the requirements would likely result in inventories of the producer-owned cooperative marketing association for Flue-cured tobacco described in section 320B(a)(2) to exceed 150 percent of the reserve stock level for Flue-cured tobacco”.