-CITE-
    7 USC CHAPTER 21C - TOBACCO REFORM                          01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM

-HEAD-
                       CHAPTER 21C - TOBACCO REFORM                   


-MISC1-
     SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                           PRODUCERS OF TOBACCO
    Sec.                                                     
    518.        Definitions.                                          
    518a.       Contract payments to tobacco quota holders.           
    518b.       Contract payments for producers of quota tobacco.     
    518c.       Administration.                                       
    518d.       Use of assessments as source of funds for payments.   
    518e.       Tobacco Trust Fund.                                   
    518f.       Limitation on total expenditures.                     

               SUBCHAPTER II - IMPLEMENTATION AND TRANSITION           
    519.        Treatment of tobacco loan pool stocks and outstanding
                 loan costs.                                          
    519a.       Regulations.                                          

-End-


-CITE-
    7 USC SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO
           QUOTA HOLDERS AND PRODUCERS OF TOBACCO          01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
     SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                           PRODUCERS OF TOBACCO

-End-



-CITE-
    7 USC Sec. 518                                              01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518. Definitions

-STATUTE-
      In this subchapter and subchapter II:
      (1) Agricultural Act of 1949
        The term "Agricultural Act of 1949" means the Agricultural Act
      of 1949 (7 U.S.C. 1421 et seq.), as in effect on the day before
      October 22, 2004.
      (2) Agricultural Adjustment Act of 1938
        The term "Agricultural Adjustment Act of 1938" means the
      Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.), as
      in effect on the day before October 22, 2004.
      (3) Considered planted
        The term "considered planted" means tobacco that was planted,
      but failed to be produced as a result of a natural disaster, as
      determined by the Secretary.
      (4) Contract
        The term "contract" means a contract entered into under section
      518a or 518b of this title.
      (5) Contract payment
        The term "contract payment" means a payment made under section
      518a or 518b of this title pursuant to a contract.
      (6) Producer of quota tobacco
        The term "producer of quota tobacco" means an owner, operator,
      landlord, tenant, or sharecropper that shared in the risk of
      producing tobacco on a farm where tobacco was produced or
      considered planted pursuant to a tobacco farm poundage quota or
      farm acreage allotment established under part I of subtitle B of
      title III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
      1311 et seq.).
      (7) Quota tobacco
        The term 'quota tobacco' (!1) means a kind of tobacco that is
      subject to a farm marketing quota or farm acreage allotment for
      the 2004 tobacco marketing year under a marketing quota or
      allotment program established under part I of subtitle B of title
      III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et
      seq.).

      (8) Tobacco
        The term "tobacco" means each of the following kinds of
      tobacco:
          (A) Flue-cured tobacco, comprising types 11, 12, 13, and 14.
          (B) Fire-cured tobacco, comprising types 22 and 23.
          (C) Dark air-cured tobacco, comprising types 35 and 36.
          (D) Virginia sun-cured tobacco, comprising type 37.
          (E) Virginia fire-cured tobacco, comprising type 21.
          (F) Burley tobacco, comprising type 31.
          (G) Cigar-filler and cigar-binder tobacco, comprising types
        42, 43, 44, 53, 54, and 55.
      (9) Tobacco quota holder
        The term "tobacco quota holder" means a person that was an
      owner of a farm, as of October 22, 2004, for which a basic
      tobacco farm marketing quota or farm acreage allotment for quota
      tobacco was established for the 2004 tobacco marketing year.
      (10) Tobacco Trust Fund
        The term "Tobacco Trust Fund" means the Tobacco Trust Fund
      established under section 518e of this title.
      (11) Secretary
        The term "Secretary" means the Secretary of Agriculture.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 621, Oct. 22, 2004, 118 Stat.
    1524.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Agricultural Act of 1949, referred to in par. (1), is act
    Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is
    classified principally to chapter 35A (Sec. 1421 et seq.) of this
    title. For complete classification of this Act to the Code, see
    Short Title note set out under section 1421 of this title and
    Tables.
      The Agricultural Adjustment Act of 1938, referred to in pars.
    (2), (6), and (7), is act Feb. 16, 1938, ch. 30, 52 Stat. 31, as
    amended, which is classified principally to chapter 35 (Sec. 1281
    et seq.) of this title. Part I of subtitle B of title III of the
    Act was classified to subpart I (Sec. 1311 et seq.) of part B of
    subchapter II of chapter 35 of this title prior to repeal by Pub.
    L. 108-357, title VI, Sec. 611(a), Oct. 22, 2004, 118 Stat. 1522.
    For complete classification of this Act to the Code, see section
    1281 of this title and Tables.


-MISC1-
                              EFFECTIVE DATE                          
      Pub. L. 108-357, title VI, Sec. 643, Oct. 22, 2004, 118 Stat.
    1536, provided that: "This title [see Short Title note below] and
    the amendments made by this title shall apply to the 2005 and
    subsequent crops of each kind of tobacco."

                                SHORT TITLE                            
      Pub. L. 108-357, title VI, Sec. 601, Oct. 22, 2004, 118 Stat.
    1521, provided that: "This title [enacting this chapter, amending
    sections 609, 1282, 1301, 1303, 1314h, 1361, 1371, 1373, 1375,
    1378, 1379, 1428, 1433c-1, and 1441 of this title and section 714c
    of Title 15, Commerce and Trade, repealing sections 511r, 515 to
    515k, 625, 1311 to 1314, 1314-1, 1314b, 1314b-1, 1314b-2, 1314c to
    1314j, 1315, 1316, 1445, 1445-1, and 1445-2 of this title, enacting
    provisions set out as notes under this section and section 515 of
    this title, and repealing provisions set out as a note under
    section 1314c of this title] may be cited as the 'Fair and
    Equitable Tobacco Reform Act of 2004'."

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    7 USC Sec. 518a                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518a. Contract payments to tobacco quota holders

-STATUTE-
    (a) Contract offered
      The Secretary shall offer to enter into a contract with each
    tobacco quota holder under which the tobacco quota holder shall be
    entitled to receive payments under this section in exchange for the
    termination of tobacco marketing quotas and related price support
    under the amendments made by sections 611 and 612.(!1) The contract
    payments shall constitute full and fair consideration for the
    termination of such tobacco marketing quotas and related price
    support.

    (b) Eligibility
      To be eligible to enter into a contract to receive a contract
    payment under this section, a person shall submit to the Secretary
    an application containing such information as the Secretary may
    require to demonstrate to the satisfaction of the Secretary that
    the person is a tobacco quota holder. The application shall be
    submitted within such time, in such form, and in such manner as the
    Secretary may require.
    (c) Base quota level
      (1) Establishment
        The Secretary shall establish a base quota level applicable to
      each tobacco quota holder identified under subsection (b).
      (2) Poundage quotas
        Subject to adjustment under subsection (d), for each kind of
      tobacco for which the marketing quota is expressed in pounds, the
      base quota level for each tobacco quota holder shall be equal to
      the basic quota for quota tobacco established for the 2002
      tobacco marketing year under a marketing quota program
      established under part I of subtitle B of title III of the
      Agriculture (!2) Adjustment Act of 1938 [7 U.S.C. 1311 et seq.]
      on the farm owned by the tobacco quota holder.

      (3) Marketing quotas other than poundage quotas
        Subject to adjustment under subsection (d), for each kind of
      tobacco for which there is marketing quota or allotment on an
      acreage basis, the base quota level for each tobacco quota holder
      shall be the quantity equal to the product obtained by
      multiplying - 
          (A) the basic tobacco farm marketing quota or allotment for
        the 2002 marketing year established by the Secretary for quota
        tobacco owned by the tobacco quota holder; by
          (B) the average production yield, per acre, for the period
        covering the 2001, 2002, and 2003 crop years for that kind of
        tobacco in the county in which the quota tobacco is located.
    (d) Treatment of certain contracts and agreements
      (1) Effect of purchase contract
        If there was an agreement for the purchase of all or part of a
      farm described in subsection (c) as of October 22, 2004, and the
      parties to the sale are unable to agree to the disposition of
      eligibility for contract payments, the Secretary, taking into
      account any transfer of quota that has been agreed to, shall
      provide for the equitable division of the contract payments among
      the parties by adjusting the determination of who is the tobacco
      quota holder with respect to particular pounds or allotment of
      the quota.
      (2) Effect of agreement for permanent quota transfer
        If the Secretary determines that there was in existence, as of
      the day before October 22, 2004, an agreement for the permanent
      transfer of quota, but that the transfer was not completed by
      that date, the Secretary shall consider the tobacco quota holder
      to be the party to the agreement that, as of that date, was the
      owner of the farm to which the quota was to be transferred.
    (e) Contract payments
      (1) Calculation of total payment amount
        The total amount of contract payments to which an eligible
      tobacco quota holder is entitled under this section, with respect
      to a kind of tobacco, shall be equal to the product obtained by
      multiplying - 
          (A) $7.00 per pound; by
          (B) the base quota level of the tobacco quota holder
        determined under subsection (c) with respect to that kind of
        tobacco.
      (2) Annual payment
        During each of fiscal years 2005 through 2014, the Secretary
      shall make a contract payment under this section to each eligible
      tobacco quota holder, with respect to a kind of tobacco, in an
      amount equal to  1/10  of the amount determined under paragraph
      (1) for the tobacco quota holder for that kind of tobacco.
    (f) Death of tobacco quota holder
      If a tobacco quota holder who is entitled to contract payments
    under this section dies and is survived by a spouse or one or more
    dependents, the right to receive the payments shall transfer to the
    surviving spouse or, if there is no surviving spouse, to the estate
    of the tobacco quota holder.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 622, Oct. 22, 2004, 118 Stat.
    1525.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 611 and 612, referred to in subsec. (a), are sections
    611 and 612 of Pub. L. 108-357, which amended sections 609, 1282,
    1301, 1303, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c-1, and
    1441 of this title and section 714c of Title 15, Commerce and
    Trade, repealed sections 511r, 515 to 515k, 625, 1311 to 1314, 1314-
    1, 1314b, 1314b-1, 1314b-2, 1314c to 1314j, 1315, 1316, 1445, 1445-
    1, and 1445-2 of this title, and repealed provisions set out as a
    note under section 1314c of this title.
      Part I of subtitle B of title III of the Agricultural Adjustment
    Act of 1938, referred to in subsec. (c)(2), was classified to
    subpart I (Sec. 1311 et seq.) of part B of subchapter II of chapter
    35 of this title prior to repeal by Pub. L. 108-357, title VI, Sec.
    611(a), Oct. 22, 2004, 118 Stat. 1522. For complete classification
    of this Act to the Code, see section 1281 of this title and Tables.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. Probably should be "Agricultural".


-End-



-CITE-
    7 USC Sec. 518b                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518b. Contract payments for producers of quota tobacco

-STATUTE-
    (a) Contract offered
      The Secretary shall offer to enter into a contract with each
    producer of quota tobacco under which the producer of quota tobacco
    shall be entitled to receive payments under this section in
    exchange for the termination of tobacco marketing quotas and
    related price support under the amendments made by sections 611 and
    612.(!1) The contract payments shall constitute full and fair
    consideration for the termination of such tobacco marketing quotas
    and related price support.

    (b) Eligibility
      (1) Application and determination
        To be eligible to enter into a contract to receive a contract
      payment under this section, a person shall submit to the
      Secretary an application containing such information as the
      Secretary may require to demonstrate to the satisfaction of the
      Secretary that the person is a producer of quota tobacco. The
      application shall be submitted within such time, in such form,
      and in such manner as the Secretary may require.
      (2) Effect of multiple producers for same quota tobacco
        If, on the basis of the applications submitted under paragraph
      (1) or other information, the Secretary determines that two or
      more persons are a producer of the same quota tobacco, the
      Secretary shall provide for an equitable distribution among the
      persons of the contract payments made under this section with
      respect to that quota tobacco, based on relative share of such
      persons in the risk of producing the quota tobacco and such other
      factors as the Secretary considers appropriate.
    (c) Base quota level
      (1) Establishment
        The Secretary shall establish a base quota level applicable to
      each producer of quota tobacco, as determined under this
      subsection.
      (2) Flue-cured and burley tobacco
        In the case of Flue-cured tobacco (types 11, 12, 13, and 14)
      and Burley tobacco (type 31), the base quota level for each
      producer of quota tobacco shall be equal to the effective tobacco
      marketing quota (irrespective of disaster lease and transfers)
      under part I of subtitle B of title III of the Agriculture (!2)
      Adjustment Act of 1938 [7 U.S.C. 1311 et seq.] for the 2002
      marketing year for quota tobacco produced on the farm.

      (3) Other kinds of tobacco
        In the case of each kind of tobacco (other than tobacco covered
      by paragraph (2)), for the purpose of calculating a contract
      payment to a producer of quota tobacco, the base quota level for
      the producer of quota tobacco shall be the quantity obtained by
      multiplying - 
          (A) the basic tobacco farm acreage allotment for the 2002
        marketing year established by the Secretary for quota tobacco
        produced on the farm; by
          (B) the average annual yield, per acre, of quota tobacco
        produced on the farm for the period covering the 2001, 2002,
        and 2003 crop years.
    (d) Contract payments
      (1) Calculation of total payment amount
        Subject to subsection (b)(2), the total amount of contract
      payments to which an eligible producer of quota tobacco is
      entitled under this section, with respect to a kind of tobacco,
      shall be equal to the product obtained by multiplying - 
          (A) subject to paragraph (2), $3.00 per pound; by
          (B) the base quota level of the producer of quota tobacco
        determined under subsection (c) with respect to that kind of
        tobacco.
      (2) Annual payment
        During each of fiscal years 2005 through 2014, the Secretary
      shall make a contract payment under this section to each eligible
      producer of tobacco, with respect to a kind of tobacco, in an
      amount equal to  1/10  of the amount determined under paragraph
      (1) for the producer for that kind of tobacco.
      (3) Variable payment rates
        The rate for payments to a producer of quota tobacco under
      paragraph (1)(A) shall be equal to - 
          (A) in the case of a producer of quota tobacco that produced
        quota tobacco marketed, or considered planted, under a
        marketing quota in all three of the 2002, 2003, or 2004 tobacco
        marketing years, the rate prescribed under paragraph (1)(A);
          (B) in the case of a producer of quota tobacco that produced
        quota tobacco marketed, or considered planted, under a
        marketing quota in only two of those tobacco marketing years, 
        2/3  of the rate prescribed under paragraph (1)(A);
          (C) in the case of a producer of quota tobacco that produced
        quota tobacco marketed, or considered planted, under a
        marketing quota in only one of those tobacco marketing years, 
        1/3  of the rate prescribed under paragraph (1)(A).
    (e) Death of tobacco producer
      If a producer of quota tobacco who is entitled to contract
    payments under this section dies and is survived by a spouse or one
    or more dependents, the right to receive the contract payments
    shall transfer to the surviving spouse or, if there is no surviving
    spouse, to the estate of the producer.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 623, Oct. 22, 2004, 118 Stat.
    1527.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 611 and 612, referred to in subsec. (a), are sections
    611 and 612 of Pub. L. 108-357, which amended sections 609, 1282,
    1301, 1303, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c-1, and
    1441 of this title and section 714c of Title 15, Commerce and
    Trade, repealed sections 511r, 515, 515a to 515k, 625, 1311 to
    1314, 1314-1, 1314b, 1314b-1, 1314b-2, 1314c to 1314j, 1315, 1316,
    1445, 1445-1, and 1445-2 of this title, and repealed provisions set
    out as a note under section 1314c of this title.
      Part I of subtitle B of title III of the Agricultural Adjustment
    Act of 1938, referred to in subsec. (c)(2), was classified to
    subpart I (Sec. 1311 et seq.) of part B of subchapter II of chapter
    35 of this title prior to repeal by Pub. L. 108-357, title VI, Sec.
    611(a), Oct. 22, 2004, 118 Stat. 1522. For complete classification
    of this Act to the Code, see section 1281 of this title and Tables.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. Probably should be "Agricultural".


-End-



-CITE-
    7 USC Sec. 518c                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518c. Administration

-STATUTE-
    (a) Time for payment of contract payments
      Contract payments required to be made for a fiscal year shall be
    made by the Secretary as soon as practicable.
    (b) Use of county committees to resolve disputes
      Any dispute regarding the eligibility of a person to enter into a
    contract or to receive contract payments, and any dispute regarding
    the amount of a contract payment, may be appealed to the county
    committee established under section 590h of title 16 for the county
    or other area in which the farming operation of the person is
    located.
    (c) Role of National Appeals Division
      Any adverse determination of a county committee under subsection
    (b) may be appealed to the National Appeals Division established
    under subtitle H of the Department of Agriculture Reorganization
    Act of 1994 (7 U.S.C. 6991 et seq.).
    (d) Use of financial institutions
      The Secretary may use a financial institution to manage assets,
    make contract payments, and otherwise carry out this title.(!1)

    (e) Payment to financial institutions
      The Secretary shall permit a tobacco quota holder or producer of
    quota tobacco entitled to contract payments to assign to a
    financial institution the right to receive the contract payments.
    Upon receiving notification of the assignment, the Secretary shall
    make subsequent contract payments for the tobacco quota holder or
    producer of quota tobacco directly to the financial institution
    designated by the tobacco quota holder or producer of quota
    tobacco. The Secretary shall make information available to tobacco
    quota holders and producers of quota tobacco regarding their
    ability to elect to have the Secretary make payments directly to a
    financial institution under this subsection so that they may obtain
    a lump sum or other payment.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 624, Oct. 22, 2004, 118 Stat.
    1528.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Department of Agriculture Reorganization Act of 1994,
    referred to in subsec. (c), is title II of Pub. L. 103-354, Oct.
    13, 1994, 108 Stat. 3209, as amended. Subtitle H of the Act is
    classified principally to subchapter VIII (Sec. 6991 et seq.) of
    chapter 98 of this title. For complete classification of this Act
    to the Code, see Tables.
      This title, referred to in subsec. (d), means title VI of Pub. L.
    108-357, which enacted this chapter, amended sections 609, 1282,
    1301, 1303, 1314h, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c-
    1, and 1441 of this title and section 714c of Title 15, Commerce
    and Trade, repealed sections 511r, 515 to 515k, 625, 1311 to 1314,
    1314-1, 1314b, 1314b-1, 1314b-2, 1314c to 1314j, 1315, 1316, 1445,
    1445-1, and 1445-2 of this title, enacted provisions set out as
    notes under sections 515 and 518 of this title, and repealed
    provisions set out as a note under section 1314c of this title. For
    complete classification of title VI to the Code, see Short Title
    note set out under section 518 of this title and Tables.

-FOOTNOTE-               

    (!1) See References in Text note below.


-End-



-CITE-
    7 USC Sec. 518d                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518d. Use of assessments as source of funds for payments

-STATUTE-
    (a) Definitions
      In this section:
      (1) Base period
        The term "base period' (!1) means the one-year period ending
      the June 30 before the beginning of a fiscal year.

      (2) Gross domestic volume
        The term "gross domestic volume" means the volume of tobacco
      products - 
          (A) removed (as defined by section 5702 of title 26); and
          (B) not exempt from tax under chapter 52 of title 26 at the
        time of their removal under that chapter or the Harmonized
        Tariff Schedule of the United States.
      (3) Market share
        The term "market share" means the share of each manufacturer or
      importer of a class of tobacco product (expressed as a decimal to
      the fourth place) of the total volume of domestic sales of the
      class of tobacco product during the base period for a fiscal year
      for an assessment under this section.
    (b) Quarterly assessments
      (1) Imposition of assessment
        The Secretary, acting through the Commodity Credit Corporation,
      shall impose quarterly assessments during each of fiscal years
      2005 through 2014, calculated in accordance with this section, on
      each tobacco product manufacturer and tobacco product importer
      that sells tobacco products in domestic commerce in the United
      States during that fiscal year.
      (2) Amounts
        Beginning with the calendar quarter ending on December 31 of
      each of fiscal years 2005 through 2014, the assessment payments
      over each four-calendar quarter period shall be sufficient to
      cover - 
          (A) the contract payments made under sections 518a and 518b
        of this title during that period; and
          (B) other expenditures from the Tobacco Trust Fund made
        during the base quarter periods corresponding to the four
        calendar quarters of that period.
      (3) Deposit
        Assessments collected under this section shall be deposited in
      the Tobacco Trust Fund.
    (c) Assessments for classes of tobacco products
      (1) Initial allocation
        The percentage of the total amount required by subsection (b)
      to be assessed against, and paid by, the manufacturers and
      importers of each class of tobacco product in fiscal year 2005
      shall be as follows:
          (A) For cigarette manufacturers and importers, 96.331
        percent.
          (B) For cigar manufacturers and importers, 2.783 percent.
          (C) For snuff manufacturers and importers, 0.539 percent.
          (D) For roll-your-own tobacco manufacturers and importers,
        0.171 percent.
          (E) For chewing tobacco manufacturers and importers, 0.111
        percent.
          (F) For pipe tobacco manufacturers and importers, 0.066
        percent.
      (2) Subsequent allocations
        For subsequent fiscal years, the Secretary shall periodically
      adjust the percentage of the total amount required under
      subsection (b) to be assessed against, and paid by, the
      manufacturers and importers of each class of tobacco product
      specified in paragraph (1) to reflect changes in the share of
      gross domestic volume held by that class of tobacco product.
      (3) Effect of insufficient amounts
        If the Secretary determines that the assessment imposed under
      subsection (b) will result in insufficient amounts to carry out
      this subchapter during a fiscal year, the Secretary shall assess
      such additional amounts as the Secretary determines to be
      necessary to carry out this subchapter during that fiscal year.
      The additional amount shall be allocated to manufacturers and
      importers of each class of tobacco product specified in paragraph
      (1) in the same manner and based on the same percentages
      applicable under paragraph (1) or (2) for that fiscal year.
    (d) Notification and timing of assessments
      (1) Notification of assessments
        The Secretary shall provide each manufacturer or importer
      subject to an assessment under subsection (b) with written notice
      setting forth the amount to be assessed against the manufacturer
      or importer for each quarterly payment period. The notice for a
      quarterly period shall be provided not later than 30 days before
      the date payment is due under paragraph (3).
      (2) Content
        The notice shall include the following information with respect
      to the quarterly period used by the Secretary in calculating the
      amount:
          (A) The total combined assessment for all manufacturers and
        importers of tobacco products.
          (B) The total assessment with respect to the class of tobacco
        products manufactured or imported by the manufacturer or
        importer.
          (C) Any adjustments to the percentage allocations among the
        classes of tobacco products made pursuant to paragraph (2) or
        (3) of subsection (c).
          (D) The volume of gross sales of the applicable class of
        tobacco product treated as made by the manufacturer or importer
        for purposes of calculating the manufacturer's or importer's
        market share under subsection (f).
          (E) The total volume of gross sales of the applicable class
        of tobacco product that the Secretary treated as made by all
        manufacturers and importers for purposes of calculating the
        manufacturer's or importer's market share under subsection (f).
          (F) The manufacturer's or importer's market share of the
        applicable class of tobacco product, as determined by the
        Secretary under subsection (f).
          (G) The market share, as determined by the Secretary under
        subsection (f), of each other manufacturer and importer, for
        each applicable class of tobacco product.
      (3) Timing of assessment payments
        (A) Collection date
          Assessments shall be collected at the end of each calendar
        year quarter, except that the Secretary shall ensure that the
        final assessment due under this section is collected not later
        than September 30, 2014.
        (B) Base period quarter
          The assessment for a calendar year quarter shall correspond
        to the base period quarter that ended at the end of the
        preceding calendar year quarter.
    (e) Allocation of assessment within each class of tobacco product
      (1) Pro rata basis
        The assessment for each class of tobacco product specified in
      subsection (c)(1) shall be allocated on a pro rata basis among
      manufacturers and importers based on each manufacturer's or
      importer's share of gross domestic volume.
      (2) Limitation
        No manufacturer or importer shall be required to pay an
      assessment that is based on a share that is in excess of the
      manufacturer's or importer's share of domestic volume.
    (f) Allocation of total assessments by market share
      The amount of the assessment for each class of tobacco product
    specified in subsection (c)(1) to be paid by each manufacturer or
    importer of that class of tobacco product shall be determined for
    each quarterly payment period by multiplying - 
        (1) the market share of the manufacturer or importer, as
      calculated with respect to that payment period, of the class of
      tobacco product; by
        (2) the total amount of the assessment for that quarterly
      payment period under subsection (c), for the class of tobacco
      product.
    (g) Determination of volume of domestic sales
      (1) In general
        The calculation of the volume of domestic sales of a class of
      tobacco product by a manufacturer or importer, and by all
      manufacturers and importers as a group, shall be made by the
      Secretary based on information provided by the manufacturers and
      importers pursuant to subsection (h), as well as any other
      relevant information provided to or obtained by the Secretary.
      (2) Gross domestic volume
        The volume of domestic sales shall be calculated based on gross
      domestic volume.
      (3) Measurement
        For purposes of the calculations under this subsection and the
      certifications under subsection (h) by the Secretary, the volumes
      of domestic sales shall be measured by - 
          (A) in the case of cigarettes and cigars, the number of
        cigarettes and cigars; and
          (B) in the case of the other classes of tobacco products
        specified in subsection (c)(1), in terms of number of pounds,
        or fraction thereof, of those products.
    (h) Measurement of volume of domestic sales
      (1) Submission of information
        Each manufacturer and importer of tobacco products shall submit
      to the Secretary a certified copy of each of the returns or forms
      described by paragraph (2) that are required to be filed with a
      Federal agency on the same date that those returns or forms are
      filed, or required to be filed, with the agency.
      (2) Returns and forms
        The returns and forms described by this paragraph are those
      returns and forms that relate to - 
          (A) the removal of tobacco products into domestic commerce
        (as defined by section 5702 of title 26); and
          (B) the payment of the taxes imposed under charter (!2) 52 of
        title 26, including AFT Form 5000.24 and United States Customs
        Form 7501 under currently applicable regulations.

      (3) Effect of failure to provide required information
        Any person that knowingly fails to provide information required
      under this subsection or that provides false information under
      this subsection shall be subject to the penalties described in
      section 1003 of title 18. The Secretary may also assess against
      the person a civil penalty in an amount not to exceed two percent
      of the value of the kind of tobacco products manufactured or
      imported by the person during the fiscal year in which the
      violation occurred, as determined by the Secretary.
    (i) Challenge to assessment
      (1) Appeal to Secretary
        A manufacturer or importer subject to this section may contest
      an assessment imposed on the manufacturer or importer under this
      section by notifying the Secretary, not later than 30 business
      days after receiving the assessment notification required by
      subsection (d), that the manufacturer or importer intends to
      contest the assessment.
      (2) Information
        Not later than 180 days after October 22, 2004, the Secretary
      shall establish by regulation a procedure under which a
      manufacturer or importer contesting an assessment under this
      subsection may present information to the Secretary to
      demonstrate that the assessment applicable to the manufacturer or
      importer is incorrect. In challenging the assessment, the
      manufacturer or importer may use any information that is
      available, including third party data on industry or individual
      company sales volumes.
      (3) Revision
        If a manufacturer or importer establishes that the initial
      determination of the amount of an assessment is incorrect, the
      Secretary shall revise the amount of the assessment so that the
      manufacturer or importer is required to pay only the amount
      correctly determined.
      (4) Time for review
        Not later than 30 days after receiving notice from a
      manufacturer or importer under paragraph (1), the Secretary shall
      - 
          (A) decide whether the information provided to the Secretary
        under paragraph (2), and any other information that the
        Secretary determines is appropriate, is sufficient to establish
        that the original assessment was incorrect; and
          (B) make any revisions necessary to ensure that each
        manufacturer and importer pays only its correct pro rata share
        of total gross domestic volume from all sources.
      (5) Immediate payment of undisputed amounts
        The regulations promulgated by the Secretary under paragraph
      (2) shall provide for the immediate payment by a manufacturer or
      importer challenging an assessment of that portion of the
      assessment that is not in dispute. The manufacturer and importer
      may place into escrow, in accordance with such regulations, only
      the portion of the assessment being challenged in good faith
      pending final determination of the claim.
    (j) Judicial review
      (1) In general
        Any manufacturer or importer aggrieved by a determination of
      the Secretary with respect to the amount of any assessment may
      seek review of the determination in the United States District
      Court for the District of Columbia or for the district in which
      the manufacturer or importer resides or has its principal place
      of business at any time following exhaustion of the
      administrative remedies available under subsection (i).
      (2) Time limits
        Administrative remedies shall be deemed exhausted if no
      decision by the Secretary is made within the time limits
      established under subsection (i)(4).
      (3) Excessive assessments
        The court shall restrain collection of the excessive portion of
      any assessment or order a refund of excessive assessments already
      paid, along with interest calculated at the rate prescribed in
      section 3717 of title 31, if it finds that the Secretary's
      determination is not supported by a preponderance of the
      information available to the Secretary.
    (k) Termination date
      The authority provided by this section to impose assessments
    terminates on September 30, 2014.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 625, Oct. 22, 2004, 118 Stat.
    1529.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Harmonized Tariff Schedule of the United States, referred to
    in subsec. (a)(2)(B), is not set out in the Code. See Publication
    of Harmonized Tariff Schedule note set out under section 1202 of
    Title 19, Customs Duties.

-FOOTNOTE-
    (!1) So in original.

    (!2) So in original. Probably should be "chapter".


-End-



-CITE-
    7 USC Sec. 518e                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518e. Tobacco Trust Fund

-STATUTE-
    (a) Establishment
      There is established in the Commodity Credit Corporation a
    revolving trust fund, to be known as the "Tobacco Trust Fund",
    which shall be used in carrying out this subchapter. The Tobacco
    Trust Fund shall consist of the following:
        (1) Assessments collected under section 518d of this title.
        (2) Such amounts as are necessary from the Commodity Credit
      Corporation.
        (3) Any interest earned on investment of amounts in the Tobacco
      Trust Fund under subsection (c).
    (b) Expenditures
      (1) Authorized expenditures
        Subject to paragraph (2), and notwithstanding any other
      provision of law, the Secretary shall use amounts in the Tobacco
      Trust Fund, in such amounts as the Secretary determines are
      necessary - 
          (A) to make payments under sections 518a and 518b of this
        title;
          (B) to provide reimbursement under section 519(c) of this
        title;
          (C) to reimburse the Commodity Credit Corporation for costs
        incurred by the Commodity Credit Corporation under paragraph
        (2); and
          (D) to make payments to financial institutions to satisfy
        contractual obligations under section 518a or 518b of this
        title.
      (2) Expenditures by Commodity Credit Corporation
        Notwithstanding any other provision of law, the Secretary shall
      use the funds, facilities, and authorities of the Commodity
      Credit Corporation to make payments described in paragraph (1).
      Not later than January 1, 2015, the Secretary shall use amounts
      in the Tobacco Trust Fund to fully reimburse, with interest, the
      Commodity Credit Corporation for all funds of the Commodity
      Credit Corporation expended under the authority of this
      paragraph. Administrative costs incurred by the Secretary or the
      Commodity Credit Corporation to carry out this title (!1) may not
      be paid using amounts in the Tobacco Trust Fund.

    (c) Investment of amounts
      (1) In general
        The Commodity Credit Corporation shall invest such portion of
      the amounts in the Tobacco Trust Fund as are not, in the judgment
      of the Commodity Credit Corporation, required to meet current
      expenditures.
      (2) Interest-bearing obligations
        Investments may be made only in interest-bearing obligations of
      the United States.
      (3) Acquisition of obligations
        For the purpose of investments under paragraph (1), obligations
      may be acquired - 
          (A) on original issue at the issue price; or
          (B) by purchase of outstanding obligations at the market
        price.
      (4) Sale of obligations
        Any obligation acquired by the Tobacco Trust Fund may be sold
      by the Commodity Credit Corporation at the market price.
      (5) Credits to Fund
        The interest on, and the proceeds from the sale or redemption
      of, any obligations held in the Tobacco Trust Fund shall be
      credited to and form a part of the Fund.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 626, Oct. 22, 2004, 118 Stat.
    1533.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This title, referred to in subsec. (b)(2), means title VI of Pub.
    L. 108-357, which enacted this chapter, amended sections 609, 1282,
    1301, 1303, 1314h, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c-
    1, and 1441 of this title and section 714c of Title 15, Commerce
    and Trade, repealed sections 511r, 515 to 515k, 625, 1311 to 1314,
    1314-1, 1314b, 1314b-1, 1314b-2, 1314c to 1314j, 1315, 1316, 1445,
    1445-1, and 1445-2 of this title, enacted provisions set out as
    notes under sections 515 and 518 of this title, and repealed
    provisions set out as a note under section 1314c of this title. For
    complete classification of title VI to the Code, see Short Title
    note set out under section 518 of this title and Tables.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    7 USC Sec. 518f                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER I - TRANSITIONAL PAYMENTS TO TOBACCO QUOTA HOLDERS AND
                    PRODUCERS OF TOBACCO        

-HEAD-
    Sec. 518f. Limitation on total expenditures

-STATUTE-
      The total amount expended by the Secretary from the Tobacco Trust
    Fund to make payments under sections 518a and 518b of this title
    and for the other authorized purposes of the Fund shall not exceed
    $10,140,000,000.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 627, Oct. 22, 2004, 118 Stat.
    1534.)

-End-


-CITE-
    7 USC SUBCHAPTER II - IMPLEMENTATION AND TRANSITION         01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER II - IMPLEMENTATION AND TRANSITION

-HEAD-
               SUBCHAPTER II - IMPLEMENTATION AND TRANSITION           

-End-



-CITE-
    7 USC Sec. 519                                              01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER II - IMPLEMENTATION AND TRANSITION

-HEAD-
    Sec. 519. Treatment of tobacco loan pool stocks and outstanding
      loan costs

-STATUTE-
    (a) Disposal of stocks
      To provide for the orderly disposition of quota tobacco held by
    an association that has entered into a loan agreement with the
    Commodity Credit Corporation under section 106A or 106B of the
    Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2) (referred to in
    this section as an "association"), loan pool stocks for each kind
    of tobacco held by the association shall be disposed of in
    accordance with this section.
    (b) Disposal by associations
      For each kind of tobacco held by an association, the association
    shall be responsible for the disposal of a specific quantity of the
    loan pool stocks for that kind of tobacco held by the association.
    The quantity transferred to the association for disposal shall be
    equal to the quantity determined by dividing - 
        (1) the amount of funds held by the association in the No Net
      Cost Tobacco Fund and the No Net Cost Tobacco Account established
      under sections 106A and 106B of the Agricultural Act of 1949 (7
      U.S.C. 1445-1, 1445-2) for the kind of tobacco; by
        (2) the average list price per pound for the kind of tobacco,
      as determined by the Secretary.
    (c) Disposal of remainder by Commodity Credit Corporation
      (1) Disposal
        Any loan pool stocks of a kind of tobacco of an association
      that are not transferred to the association under subsection (b)
      for disposal shall be disposed of by Commodity Credit Corporation
      in a manner determined by the Secretary.
      (2) Reimbursement
        As required by section 518e(b)(1)(B) of this title, the
      Secretary shall transfer from the Tobacco Trust Fund to the No
      Net Cost Tobacco Fund or the No Net Cost Tobacco Account of an
      association established under section 106A or 106B of the
      Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2) such amounts
      as the Secretary determines will be adequate to reimburse the
      Commodity Credit Corporation for any net losses that the
      Corporation may sustain under its loan agreements with the
      association.
    (d) Transfer of remaining no net cost funds
      Any funds in the No Net Cost Tobacco Fund or the No Net Cost
    Tobacco Account of an association established under sections 106A
    and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445-1, 1445-2)
    that remain after the application of subsections (b) and (c) shall
    be transferred to the association for distribution to producers of
    quota tobacco in accordance with a plan approved by the Secretary.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 641, Oct. 22, 2004, 118 Stat.
    1534.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 106A and 106B of the Agricultural Act of 1949, referred
    to in text, were classified to sections 1445-1 and 1445-2,
    respectively, of this title prior to repeal by Pub. L. 108-357,
    title VI, Sec. 612(a), Oct. 22, 2004, 118 Stat. 1523.

-End-



-CITE-
    7 USC Sec. 519a                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 21C - TOBACCO REFORM
    SUBCHAPTER II - IMPLEMENTATION AND TRANSITION

-HEAD-
    Sec. 519a. Regulations

-STATUTE-
    (a) In general
      The Secretary may promulgate such regulations as are necessary to
    implement this title (!1) and the amendments made by this
    title.(!1)

    (b) Procedure
      The promulgation of the regulations and administration of this
    title (!1) and the amendments made by this title (!1) shall be made
    without regard to - 
        (1) the notice and comment provisions of section 553 of title
      5;
        (2) the Statement of Policy of the Secretary of Agriculture
      effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices
      of proposed rulemaking and public participation in rulemaking;
      and
        (3) chapter 35 of title 44 (commonly known as the "Paperwork
      Reduction Act").
    (c) Congressional review of agency rulemaking
      In carrying out this section, the Secretary shall use the
    authority provided under section 808 of title 5.

-SOURCE-
    (Pub. L. 108-357, title VI, Sec. 642, Oct. 22, 2004, 118 Stat.
    1535.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This title, referred to in subsecs. (a) and (b), means title VI
    of Pub. L. 108-357, which enacted this chapter, amended sections
    609, 1282, 1301, 1303, 1314h, 1361, 1371, 1373, 1375, 1378, 1379,
    1428, 1433c-1, and 1441 of this title and section 714c of Title 15,
    Commerce and Trade, repealed sections 511r, 515 to 515k, 625, 1311
    to 1314, 1314-1, 1314b, 1314b-1, 1314b-2, 1314c to 1314j, 1315,
    1316, 1445, 1445-1, and 1445-2 of this title, enacted provisions
    set out as notes under sections 515 and 518 of this title, and
    repealed provisions set out as a note under section 1314c of this
    title. For complete classification of title VI to the Code, see
    Short Title note set out under section 518 of this title and
    Tables.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-