I
104TH CONGRESS
1ST SESSION
H. R. 2653
To amend the Agricultural Adjustment Act of 1938 and the Agricultural
Act of 1949 to improve the operation of the Government Flue-cured
and Burley tobacco programs.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 16, 1995
Mr. ROSE (for himself and Mr. BAESLER) introduced the following bill; which
was referred to the Committee on Agriculture
A BILL
To amend the Agricultural Adjustment Act of 1938 and
the Agricultural Act of 1949 to improve the operation
of the Government Flue-cured and Burley tobacco pro-
grams.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Tobacco Amendments Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Elimination of Federal budgetary outlays for tobacco programs.
Sec. 3. Establishment of farm yield for Flue-cured tobacco based on individual
farm production history.
Sec. 4. Removal of farm reconstitution exception for Burley tobacco.
Sec. 5. Reduction in percentage threshold for transfer of Flue-cured tobacco
quota in cases of disaster.
Sec. 6. Expansion of types of tobacco subject to no net cost assessment.
Sec. 7. Repeal of reporting requirements relating to export of tobacco.
Sec. 8. Repeal of limitation on reducing national marketing quota for Flue-
cured and Burley tobacco.
Sec. 9. Application of civil penalties under Tobacco Inspection Act.
Sec. 10. Transfers of quota or allotment across county lines in a State.
Sec. 11. Calculation of national marketing quota.
Sec. 12. Clarification of authority to access civil money penalties.
Sec. 13. Lease and transfer of farm marketing quotas for Burley tobacco.
Sec. 14. Limitation on transfer of acreage allotments of other tobacco.
Sec. 15. Good faith reliance on actions or advice of Department representatives.
Sec. 16. Uniform forfeiture dates for Flue-cured and Burley tobacco.
Sec. 17. Sale of Burley and Flue-cured tobacco marketing quotas for a farm
by recent purchasers.
SEC. 2. ELIMINATION OF FEDERAL BUDGETARY OUTLAYS
FOR TOBACCO PROGRAMS.
Section 106(g)(1) of the Agricultural Act of 1949 (7
U.S.C. 1445(g)(1)) is amended—
(1) by striking ‘‘1998’’ and inserting ‘‘2002’’;
and
(2) by inserting after ‘‘equal to’’ the following:
‘‘a pro rata share of the total amount of the costs
of other Department of Agriculture programs related
to tobacco production or processing that are not re-
quired to be covered by user fees or by contributions
or 
assessments 
under 
section 
106A(d)(1) 
or
106B(d)(1), but in no event less than’’.
SEC. 3. ESTABLISHMENT OF FARM YIELD FOR FLUE-CURED
TOBACCO BASED ON INDIVIDUAL FARM PRO-
DUCTION HISTORY.
(a) METHOD OF DETERMINING FARM ACREAGE AL-
LOTMENTS.—Subsection (a) of section 317 of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1314c) is amend-
ed by striking paragraphs (2) through (8) and inserting
the following new paragraphs:
‘‘(2) FARM ACREAGE ALLOTMENTS.—The term
‘farm acreage allotment’ for a tobacco farm, other
than a new tobacco farm, means the acreage allot-
ment determined by dividing the farm marketing
quota by the farm yield.
‘‘(3) FARM
YIELD.—The term ‘farm yield’
means the yield per acre for a farm determined ac-
cording to regulations issued by the Secretary and
which would be expected to result in a quality of to-
bacco acceptable to the tobacco trade.
‘‘(4) FARM MARKETING QUOTA.—
‘‘(A) IN GENERAL.—The term ‘farm mar-
keting quota’ for a farm for a marketing year
means a number that is equal to the number of
pounds of tobacco determined by multiplying—
‘‘(i) the farm marketing quota for the
farm for the previous marketing year
(prior 
to 
any 
adjustment 
for
undermarketing or overmarketing); by
‘‘(ii) the national factor.
‘‘(B) ADJUSTMENT.—The farm marketing
quota determined under subparagraph (A) for a
marketing 
year 
shall 
be 
increased 
for
undermarketing or decreased for overmarketing
by the number of pounds by which marketings
of tobacco from the farm during the immediate
preceding marketing year (if marketing quotas
were in effect for that year under the program
established by this section) is less than or ex-
ceeds the farm marketing quota for such year.
Notwithstanding the preceding sentence, the
farm marketing quota for a marketing year
shall not be increased under this subparagraph
for undermarketing by an amount in excess of
the farm marketing quota determined for the
farm for the immediately preceding year prior
to any increase for undermarketing or decrease
for overmarketing. If due to excess marketing
in the preceding marketing year, the farm mar-
keting quota for the marketing year is reduced
to zero pounds without reflecting the entire re-
duction required, the additional reduction shall
be made for the subsequent marketing year or
years.
‘‘(5) NATIONAL FACTOR.—The term ‘national
factor’ for a marketing year means a number ob-
tained by dividing—
‘‘(A) the national marketing quota (less
the reserve provided for under subsection (e));
by
‘‘(B) the sum of the farm marketing
quotas 
(prior 
to 
any 
adjustments 
for
undermarketing or overmarketing) for the im-
mediate preceding marketing year for all farms
for which marketing quotas for the kind of to-
bacco involved will be determined for such suc-
ceeding marketing year.’’.
(b) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in the first sentence of subsection (b), by
striking ‘‘and the national acreage allotment and na-
tional average yield goal for the 1965 crop of Flue-
cured tobacco,’’;
(2) in the first sentence of subsection (c), by
striking ‘‘and at the same time announce the na-
tional acreage allotment and national average yield
goal’’;
(3) in subsection (d)—
(A) in the sixth sentence, by striking ‘‘, na-
tional acreage allotment, and national average
yield goal’’;
(B) in the eighth sentence, by striking ‘‘,
national acreage allotment and national average
yield goal’’; and
(C) in the ninth sentence, by striking ‘‘,
national acreage allotment, and national aver-
age goal are’’ and inserting ‘‘is’’;
(4) in subsection (e)—
(A) in the first sentence, by striking ‘‘No
farm acreage allotment or farm yield shall be
established’’ and inserting ‘‘A farm marketing
quota and farm yield shall not be established’’;
(B) in the second sentence, by striking
‘‘acreage allotment’’ both places it appears and
inserting ‘‘marketing quota’’;
(C) in the second sentence, by striking
‘‘acreage allotments’’ both places it appears and
inserting ‘‘marketing quotas’’; and
(D) in the last sentence, by striking ‘‘acre-
age 
allotment’’ 
and 
inserting 
‘‘marketing
quota’’; and
(5) in subsection (g)—
(A) in paragraph (1), by striking ‘‘para-
graph 
(a)(8)’’ 
and 
inserting 
‘‘subsection
(a)(4)’’; and
(B) in paragraph (3), by striking ‘‘sub-
section 
(a)(8)’’ 
and 
inserting 
‘‘subsection
(a)(4)’’.
(c) FARM MARKETING QUOTA REDUCTIONS.—Sub-
section (f) of such section is amended to read as follows:
‘‘(f) CAUSES FOR FARM MARKETING QUOTA REDUC-
TION.—(1) When an acreage-poundage program is in ef-
fect for any kind of tobacco under this section, the farm
marketing quota next established for a farm shall be re-
duced by the amount of such kind of tobacco produced
on the farm—
‘‘(A) which was marketed as having been pro-
duced on a different farm;
‘‘(B) for which proof of disposition is not fur-
nished as required by the Secretary;
‘‘(C) on acreage equal to the difference between
the acreage reported by the farm operator or a duly
authorized representative and the determined acre-
age for the farm; and
‘‘(D) as to which any producer on the farm
filed, or aids, or acquiesces, in the filing of any false
report with respect to the production or marketing
of tobacco.
‘‘(2) If the Secretary, through the local committee,
finds that no person connected with a farm caused, aided,
or acquiesced in any irregularity described in paragraph
(1), the next established farm marketing quota shall not
be reduced under this subsection.
‘‘(3) The reduction required under this subsection
shall be in addition to any other adjustments made pursu-
ant to this section.
‘‘(4) In establishing farm marketing quotas for other
farms owned by the owner displaced by acquisition of the
owner’s land by any agency, as provided in section 378
of this Act, increases or decreases in such farm marketing
quotas as provided in this section shall be made on ac-
count of marketings below or in excess of the farm mar-
keting quotas for the farm acquired by the agency.
‘‘(5) Acreage allotments and farm marketing quotas
determined under this section may (except in the case of
kinds of tobacco not subject to section 316) be leased and
sold under the terms and conditions in section 316 of this
Act, except that any credit for undermarketing or charge
for overmarketing shall be attributed to the farm to which
transferred.’’.