SUGAR PROGRAM.

SEC. 156. SUGAR PROGRAM. (a) Sugarcane.— The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar. (b) Sugar Beets.— The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar. (c) Reduction in Loan Rates.— (1) Reduction required.— The Secretary shall reduce the loan rate specified in subsection (a) for domestically grown sugarcane and subsection (b) for domestically grown sugar beets if the Secretary determines that negotiated reductions in export subsidies and domestic subsidies provided for sugar of other major sugar growing, producing, and exporting countries in the aggregate exceed the commitments made as part of the Agreement on Agriculture. (2) Extent of reduction.— The Secretary shall not reduce the loan rate under subsection (a) or (b) below a rate that provides an equal measure of support to that provided by other major sugar growing, producing, and exporting countries, based on an examination of both domestic and export subsidies subject to reduction in the Agreement on Agriculture. (3) Announcement of reduction.— The Secretary shall announce any loan rate reduction to be made under this sub section as far in advance as is practicable. (4) Definitions.— In this subsection: (A) Agreement on agriculture.— The term “Agreement on Agriculture” means the Agreement on Agriculture referred to in section 101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)). (B) Major sugar countries.— The term “major sugar growing, producing, and exporting countries” means— (i) the countries of the European Union; and (ii) the 10 foreign countries not covered by subparagraph (A) that the Secretary determines produce the greatest quantity of sugar. (d) Term of Loans.— (1) In general.— A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of— (A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or (B) the end of the fiscal year in which the loan is made. (2) Supplemental loans.— In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall— (A) be made at the loan rate in effect at the time the second loan is made; and (B) mature in 9 months less the quantity of time that the first loan was in effect. (e) Loan Type; Processor Assurances.— 110 STAT. 932 (1) Recourse loans.— Subject to paragraph (2), the Secretary shall carry out this section through the use of recourse loans. (2) Nonrecourse loans.— During any fiscal year in which the tariff rate quota for imports of sugar into the United States is established at, or is increased to, a level in excess of 1,500,000 short tons raw value, the Secretary shall carry out this section by making available nonrecourse loans. Any recourse loan previously made available by the Secretary under this section during the fiscal year shall be changed by the Secretary into a nonrecourse loan. (3) Processor assurances.— If the Secretary is required under paragraph (2) to make nonrecourse loans available during a fiscal year or to change recourse loans into nonrecourse loans, the Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for sugar beets and sugarcane delivered by producers served by the processor. The Secretary may establish appropriate minimum payments for purposes of this paragraph. (f) Marketing Assessment.— (1) Sugarcane.— Effective for marketings of raw cane sugar during the 1996 through 2003 fiscal years, the first processor of sugarcane shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to— (A) in the case of marketings during fiscal year 1996, 1.1 percent of the loan rate established under subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing); and (B) in the case of marketings during each of fiscal years 1997 through 2003, 1.375 percent of the loan rate established under subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing). (2) Sugar beets.— Effective for marketings of beet sugar during the 1996 through 2003 fiscal years, the first processor of sugar beets shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to— (A) in the case of marketings during fiscal year 1996, 1.1794 percent of the loan rate established under subsection (a) per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed; and (B) in the case of marketings during each of fiscal years 1997 through 2003, 1.47425 percent of the loan rate established under subsection (a) per pound of beet sugar, processed by the processor from domestically produced 110 STAT. 933sugar beets or sugar beet molasses, that has been marketed. (3) Collection.— (A) Timing.— A marketing assessment required under this subsection shall be collected on a monthly basis and shall be remitted to the Commodity Credit Corporation not later than 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of the year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is marketed. (B) Manner.— Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be non-refundable. (4) Penalties.— If any person fails to remit the assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying— (A) the quantity of cane sugar or beet sugar involved in the violation; by (B) the loan rate for the applicable crop of sugarcane or sugar beets. (5) Enforcement.— The Secretary may enforce this subsection in a court of the United States. (g) Forfeiture Penalty.— (1) In general.— A penalty shall be assessed on the forfeiture of any sugar pledged as collateral for a nonrecourse loan under this section. (2) Cane sugar.— The penalty for cane sugar shall be 1 cent per pound. (3) Beet sugar.— The penalty for beet sugar shall bear the same relation to the penalty for cane sugar as the marketing assessment for sugar beets bears to the marketing assessment for sugarcane. (4) Effect of forfeiture.— Any payments owed producers by a processor that forfeits any sugar pledged as collateral for a nonrecourse loan shall be reduced in proportion to the loan forfeiture penalty incurred by the processor. (h) Information Reporting.— (1) Duty of processors and refiners to report.— A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar. (2) 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. (3) Monthly reports.— Taking into consideration the information received under paragraph (1), the Secretary shall 110 STAT. 934publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar. (i) Crops.— This section (other than subsection (f)) shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.