I
105TH CONGRESS
2D SESSION
H. R. 3664
To provide crop insurance coverage for tobacco crops, to provide extension
services related to tobacco, and to provide for the administration of
the Federal tobacco price support and quota programs at no expense
to the Department of Agriculture.
IN THE HOUSE OF REPRESENTATIVES
APRIL 1, 1998
Mr. LEWIS of Kentucky (for himself, Mr. BUNNING of Kentucky, Mr.
WHITFIELD, Mr. CHAMBLISS, and Mr. ROGERS) introduced the following
bill; which was referred to the Committee on Agriculture
A BILL
To provide crop insurance coverage for tobacco crops, to
provide extension services related to tobacco, and to pro-
vide for the administration of the Federal tobacco price
support and quota programs at no expense to the De-
partment of Agriculture.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Tobacco Program Ad-
ministrative Reform Act of 1998’’.
SEC. 2. ASSESSMENT UPON TOBACCO PRODUCT MANUFAC-
TURERS AND IMPORTERS TO COVER DEPART-
MENT OF AGRICULTURE COSTS ASSOCIATED
WITH TOBACCO PROGRAMS.
(a) COVERED DEPARTMENT COSTS.—Not later than
September 30 of each fiscal year, the Secretary of Agri-
culture shall estimate the costs to be incurred by the De-
partment of Agriculture during the next fiscal year—
(1) to administer the tobacco quota program
under subtitle B of title III of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1311 et seq.);
(2) to administer the tobacco price support pro-
gram under sections 106, 106A, and 106B of the
Agricultural Act of 1949 (7 U.S.C. 1445, 1445–1,
1445–2);
(3) to carrying out crop insurance programs for
tobacco, including the costs to be incurred by the
Federal Crop Insurance Corporation under section
508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) to pay the premium for catastrophic risk
protection for tobacco crops and the Federal portion
of the premium for various additional coverages
available for tobacco crops; and
(4) to extension services related to tobacco pro-
duction and marketing.
(b) ADJUSTMENT OF ESTIMATE.—If the estimate
prepared for a fiscal year under subsection (a) proves to
be insufficient to cover the actual costs described in such
subsection that were incurred by the Department during
that fiscal year, the Secretary shall adjust the estimate
for the next fiscal year to recoup the additional costs in-
curred by Department and paid out of Department funds.
(c) MARKET SHARE AND ASSESSMENT DETERMINA-
TIONS.—As soon as possible after preparing the estimate
for a fiscal year under subsection (a), the Secretary shall
determine the market share of each tobacco product man-
ufacturer and each tobacco product importer during the
most recent calendar year and the amount of the assess-
ment payable by the tobacco product manufacturer or to-
bacco product importer for that fiscal year.
(d) INDIVIDUAL AMOUNT OF ASSESSMENTS.—The
amount of an assessment payable by each tobacco product
manufacturer and tobacco product importer under this
section for a fiscal year shall be equal to the product ob-
tained by multiplying—
(1) the total amount of costs estimated by the
Secretary under subsection (a), as adjusted under
subsection (b), for that fiscal year; by
(2) the market share of the tobacco product
manufacturer or tobacco product importer during
the most recent calendar year determined under sub-
section (d).
(e) COLLECTION, DEPOSIT, AND AVAILABILITY OF
ASSESSMENTS.—
(1) COLLECTION.—At such time each fiscal
year and in such manner as the Secretary may pre-
scribe, each tobacco product manufacturer and to-
bacco product importer shall remit to the Secretary
a nonrefundable assessment in the amount deter-
mined for that tobacco product manufacturer or to-
bacco product importer for that year under sub-
section (d). The Secretary may enforce the collection
of assessments under this paragraph in the courts of
the United States.
(2) TOBACCO ASSESSMENT FUND.—There is es-
tablished in the Treasury of the United States a
fund to be known as the ‘‘Tobacco Assessment
Fund’’, which shall consist of all assessments col-
lected under paragraph (1).
(3) AUTHORIZED USES OF FUND.—Amounts in
the Tobacco Assessment Fund shall be available to
the Secretary, without further appropriation, to
cover the Department costs described in subsection
(a).
(4) REFUNDS.—If the Secretary determines
that amounts collected under paragraph (1) for a
fiscal year and deposited in the Tobacco Assessment
Fund exceed the amounts required to cover antici-
pated Department costs under subsection (a) for
that fiscal year, plus a reasonable reserve, the Sec-
retary shall refund the excess amounts to tobacco
product manufacturers and tobacco product import-
ers using the same proportion for each tobacco prod-
uct manufacturer and tobacco product importer as
used in the original assessment.
(f) EFFECT ON CROP INSURANCE PREMIUMS; EXIST-
ING ASSESSMENTS.—(1) Amounts made available to the
Secretary under this section may not be used to change
the crop insurance premiums assessed to tobacco produc-
ers under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq.) relative to other crops.
(2) Nothing in this section shall be construed to alter
the assessments imposed and collected—
(A) for deficit reduction purposes under section
106(g) of the Agricultural Act of 1949 (7 U.S.C.
1445(g)); or
(B) to finance operations of No Net Cost To-
bacco Funds under section 106A of such Act (7
U.S.C. 1445–1) and No Net Cost Tobacco Accounts
under section 106B of such Act (7 U.S.C. 1445–2).
(g) DEFINITIONS.—For purposes of this section:
(1) TOBACCO PRODUCT IMPORTER.—The term
‘‘tobacco product importer’’ has the meaning given
the term ‘‘importer’’ in section 5702 of the Internal
Revenue Code of 1986 (26 U.S.C. 5702).
(2) TOBACCO PRODUCT MANUFACTURER.—The
term ‘‘tobacco product manufacturer’’ has the mean-
ing given the term ‘‘manufacturer of tobacco prod-
ucts’’ in section 5702 of the Internal Revenue Code
of 1986 (26 U.S.C. 5702); except that the term does
not include a person that only manufactures cigars
or pipe tobacco.
(3) 
MARKET
SHARE.—The 
term 
‘‘market
share’’ means the ratio of—
(A) the tax liability of a tobacco product
manufacturer or tobacco product importer for a
calendar year under section 5703 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 5703); to
(B) the tax liability of all tobacco product
manufacturers and tobacco product importers
for that calendar year under such section.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.