
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1314h]

 
                          TITLE 7--AGRICULTURE
 
             CHAPTER 35--AGRICULTURAL ADJUSTMENT ACT OF 1938
 
 SUBCHAPTER II--LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING 
                   QUOTAS, AND MARKETING CERTIFICATES
 
                        Part B--Marketing Quotas
 
                  subpart i--marketing quotas--tobacco
 
Sec. 1314h. Purchase requirements; penalty


(a) Statement of quantity purchased during marketing year

    (1) At the conclusion of each marketing year, on or before a date 
prescribed by the Secretary, each domestic manufacturer of cigarettes 
shall submit to the Secretary a statement, by kind, of the quantity of 
Flue-cured and Burley quota tobacco purchased, directly or indirectly, 
by such manufacturer during such marketing year.
    (2) The statement shall include, but not be limited to, the quantity 
of each such kind of tobacco purchased by the manufacturer on the United 
States auction markets, from producers, and from the inventories of 
tobacco from the 1985 and subsequent crops of the producer-owned 
cooperative marketing associations that have entered into loan 
agreements with the Commodity Credit Corporation to make price support 
available to producers of Flue-cured or Burley tobacco.

(b) Failure to purchase at least 90 percent of quantity of intended 
        purchases; reduction in quantity of intended purchases

    (1) Except as otherwise provided in this subsection, any domestic 
manufacturer of cigarettes that fails, as determined by the Secretary 
after notice and opportunity for a hearing, to purchase during a 
marketing year on the United States auction markets, from producers, or 
from the inventories of tobacco from the 1985 and subsequent crops of 
the producer associations described in subsection (a)(2) of this section 
a quantity of Flue-cured quota tobacco and a quantity of Burley quota 
tobacco equal to at least 90 percent of the quantity of the intended 
purchases of Flue-cured tobacco and Burley tobacco, respectively, 
submitted by such manufacturer or established by the Secretary for such 
manufacturer for that marketing year under section 1314g of this title 
(as that quantity may be reduced under paragraph (2)) shall be subject 
to a penalty as prescribed in subsection (c) of this section.
    (2)(A) If the total quantity of Flue-cured or Burley quota tobacco, 
respectively, marketed by producers at auction in the United States 
during the marketing year in question is less than the national 
marketing quota (including any adjustments for overmarketings or 
undermarketings) for that kind of tobacco for that marketing year, the 
quantity of intended purchases of each domestic manufacturer of 
cigarettes, for purposes of paragraph (1), shall be reduced by a 
percentage equal to the percentage by which the total quantity marketed 
at auction in the United States during the marketing year is less than 
the national marketing quota (including any adjustments for 
overmarketings or undermarketings) for that kind of tobacco for the 
marketing year.
    (B) For purposes of this section, the term ``marketed'' shall 
include disposition of tobacco by consigning the tobacco to a producer 
association described in subsection (a)(2) of this section for a price 
support advance.

(c) Penalty for failure to purchase specified amount

    The amount of any penalty to be imposed on a manufacturer under this 
section shall be determined by multiplying--
        (1) twice the per pound assessment (as determined under section 
    1445-1 or 1445-2 of this title) for the kind of tobacco involved; by
        (2) the quantity by which--
            (A) the purchases by such manufacturer on the United States 
        auction markets, from producers, or from the inventories of 
        tobacco from the 1985 and subsequent crops of the producer 
        associations described in subsection (a)(2) of this section of 
        Flue-cured and Burley quota tobacco, respectively, for the 
        marketing year; are less than
            (B) 90 percent of the quantity of intended purchases of such 
        kinds of tobacco, respectively, submitted by the manufacturer or 
        established by the Secretary for such manufacturer for that 
        marketing year under section 1314g of this title (as that 
        quantity may be reduced under subsection (b)(2) of this 
        section).

(d) Transmission of penalty by Secretary; deposit in No Net Cost Fund or 
        Account

    (1) An amount equivalent to the penalty collected by the Secretary 
under this section shall be transmitted by the Secretary to the 
appropriate producer-owned cooperative marketing association that has 
entered into a loan agreement with the Commodity Credit Corporation to 
make price support available to producers of Flue-cured or Burley 
tobacco, as the case may be.
    (2) Each association to which amounts are transmitted by the 
Secretary under this section shall deposit such amounts in the No Net 
Cost Fund or Account of such association in accordance with section 
1445-1 or 1445-2 of this title.

(e) Confidentiality of information submitted; disclosure; publication of 
        identity of violators; exemption from public disclosure; 
        penalties

    The limitations on disclosure set forth in subsections (c) and (d) 
of section 1314g of this title shall apply to information submitted by 
domestic manufacturers of cigarettes under this section with respect to 
the quantity of purchases of Flue-cured and Burley quota tobacco during 
a marketing year. Any officer or employee of the Department of 
Agriculture who violates such limitations on disclosure shall be subject 
to the penalties set forth in section 1314g(c)(4) of this title.

(f) ``Quota tobacco'' defined

    As used in this section, the term ``quota tobacco'' means any kind 
of tobacco for which marketing quotas are in effect or for which 
marketing quotas are not disapproved by producers.

(Feb. 16, 1938, ch. 30, title III, Sec. 320B, as added Pub. L. 99-272, 
title I, Sec. 1106(a), Apr. 7, 1986, 100 Stat. 90.)


                             Effective Date

    Section 1106(a) of Pub. L. 99-272 provided that this section is 
effective for 1986 and subsequent crops of tobacco.


                          Rulemaking Procedures

    For implementation of this section by the Secretary of Agriculture 
without regard to the provisions requiring notice and other procedures 
for public participation in rulemaking contained in section 553 of Title 
5, Government Organization and Employees, or in any other directive of 
the Secretary, see section 1108(c) of Pub. L. 99-272, set out as a note 
under section 1301 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1314c, 1314e, 1314i, 1372 of 
this title.
