
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: 7USC1445-3]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
 
              SUBCHAPTER II--BASIC AGRICULTURAL COMMODITIES
 
Sec. 1445-3. Purchase of inventory stock

    Notwithstanding any other provision of law, in order to reduce or 
eliminate the excessive inventories of Flue-cured and Burley tobacco 
held by associations from the 1976 through 1984 crops, and in order to 
provide for the orderly disposition of such excessive inventories of 
tobacco in a manner that will not disrupt the orderly marketing of new 
tobacco crops and will minimize any losses to the Federal Government:

(a) Sale of inventory stock

    (1) The 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 tobacco shall 
offer to sell the stocks of Flue-cured tobacco of the association from 
the 1976 through 1984 crops as provided in this section.
    (2) Each 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 Burley tobacco shall offer 
to sell its stocks of Burley tobacco from the 1982 and 1984 crops as 
provided in this section.
    (3)(A)(i) Not later than 30 days after April 7, 1986, the Commodity 
Credit Corporation shall acquire title to the Burley tobacco from the 
1983 crop that is pledged as security for loans on such tobacco by 
calling the loans on such tobacco.
    (ii) The Corporation shall, then, offer such tobacco for sale at 
such times, in such quantities, and subject to such conditions as the 
Corporation considers appropriate.
    (B) If the Commodity Credit Corporation has not sold all of the 
stocks of the 1983 crop of Burley tobacco within 2 years from the date 
the Corporation calls the loans on such tobacco, the Corporation may 
offer to sell to domestic manufacturers of cigarettes the remaining 
stocks of such tobacco as provided in this section.

(b) Sale prices

    (1)(A) The stocks of Flue-cured tobacco from the 1976 through 1984 
crops shall be offered for sale at the base prices, including carrying 
charges, in effect as of the date of the offer, reduced by--
        (i) 90 percent for Flue-cured tobacco from the 1976 through 1981 
    crops; and
        (ii) 10 percent for Flue-cured tobacco from the 1982 through 
    1984 crops.

    (B) The purchasers of the stocks of Flue-cured tobacco from the 1976 
through 1984 crops shall pay the full carrying charges that have accrued 
to such tobacco from the date of the offer made under this section to 
the date that such tobacco is removed from the inventory of the 
association.
    (2)(A) The stocks of Burley tobacco from the 1982 crop shall be 
offered for sale at the listed base price in effect as of July 1, 1985.
    (B) The stocks of Burley tobacco from the 1984 crop shall be offered 
for sale at the costs of the association for such tobacco as of April 7, 
1986.
    (C) The purchasers of the stocks of Burley tobacco from the 1982 
crop shall pay the full carrying charges that have accrued to such 
tobacco.
    (D) The purchasers of the stocks of Burley tobacco from the 1984 
crop shall pay the full carrying charges that have accrued to such 
tobacco from April 7, 1986, to the date such tobacco is removed from the 
inventories of the associations.
    (3)(A) After the 2-year period specified in subsection (a)(3)(B) of 
this section has expired, if the Commodity Credit Corporation offers to 
sell the stocks of the Corporation of Burley tobacco from the 1983 crop 
to domestic manufacturers of cigarettes, such stocks shall be offered 
for sale at the costs of the association, including carrying charges, as 
of the date on which the Corporation calls the loans on such tobacco, 
reduced by 90 percent.
    (B) Neither tobacco producers nor tobacco purchasers shall be 
responsible for carrying charges that accrue to the 1983 crop of Burley 
tobacco after the date on which the Commodity Credit Corporation calls 
the loans on such tobacco.

(c) Terms of agreements

    (1)(A) Each domestic manufacturer of cigarettes may enter into 
agreements to purchase inventory stocks of Flue-cured and Burley 
tobacco, in accordance with this section.
    (B) To be eligible for the reductions in price specified in this 
section, such manufacturer shall enter into such agreements as soon as 
practicable, but not later than 90 days after April 7, 1986, except 
that, with respect to the 1983 crop of Burley tobacco, if the 
Corporation offers to sell the stocks of such tobacco pursuant to 
subsection (b)(3)(A) of this section, such agreements shall be entered 
into as soon as practicable, but not later than 90 days after the end of 
the 2-year period referred to in subsection (a)(3)(B) of this section.
    (C)(i) Such agreements shall provide that, over a period of time, 
each participating domestic manufacturer of cigarettes shall purchase a 
percentage of the stocks of Flue-cured and Burley tobacco held--
        (I) by the producer-owned cooperative marketing associations at 
    the close of the 1984 marketing year; or
        (II) in the case of the 1983 crop of Burley tobacco, by the 
    Commodity Credit Corporation at the time the Corporation offers such 
    tobacco for sale to domestic manufacturers of cigarettes under this 
    section.

    (ii) The period of time referred to in clause (i) may not exceed--
        (I) in the case of Flue-cured tobacco, 8 years from April 7, 
    1986;
        (II) in the case of Burley tobacco from the 1982 and 1984 crops, 
    5 years from April 7, 1986; and
        (III) in the case of the 1983 crop of Burley tobacco, 5 years 
    from the end of the 2-year period referred to in subsection 
    (a)(3)(B) of this section.

    (2)(A)(i) The percentage to be purchased by each participating 
manufacturer shall be at least equal to the respective percentage of the 
participating manufacturer of the total quantity of net cigarettes 
manufactured for use as determined by the Secretary of Agriculture under 
this paragraph on the basis of the monthly reports (``Manufacturer of 
Tobacco Products--Monthly Reports'') submitted (on ATF Form 3068) by 
manufacturers of tobacco products to the Bureau of Alcohol, Tobacco and 
Firearms of the Department of the Treasury.
    (ii) The Secretary of Agriculture shall request from the Secretary 
of the Treasury copies of such monthly reports necessary to make the 
determinations required under this section.
    (iii) Notwithstanding any other provision of law, the Secretary of 
the Treasury may release and disclose such information to the Secretary 
of Agriculture.
    (B) ``Net cigarettes manufactured for use'' shall be computed by 
subtracting--
        (i) the cumulative figures entered for large and small 
    cigarettes in item 16f of ATF Form 3068 (``Reduction to tobacco''); 
    from
        (ii) the cumulative figures entered for large and small 
    cigarettes in item 7 of such form (``Manufactured'').

    (C)(i) The percentage to be purchased by each participating 
manufacturer shall be determined--
        (I) on April 7, 1986; and
        (II) annually thereafter over the course of the respective buy-
    out periods specified in this subsection.

    (ii) Such percentage shall be determined by dividing--
        (I) the average net cigarettes manufactured by a manufacturer 
    for use for the 12-month period immediately preceding the 
    appropriate determination date (April 7, 1986, and annually 
    thereafter over the course of the respective buy-out periods 
    specified in this subsection); by
        (II) the aggregate average net cigarettes manufactured by all 
    domestic cigarette manufacturers for use for such 12-month period.

    (D)(i) The quantity of tobacco to be purchased by each participating 
manufacturer shall be determined annually.
    (ii) Such quantity shall be based on--
        (I) the percentage of net cigarettes of a manufacturer 
    manufactured for use, as determined under subparagraph (C); 
    multiplied by
        (II) the appropriate annual quantity to be withdrawn from the 
    inventories of the associations or the Commodity Credit Corporation.

    (iii) The appropriate annual quantity to be withdrawn from 
inventories shall be--
        (I) 12\1/2\ percent of the inventories of Flue-cured tobacco 
    from the 1976 through 1984 crops on hand on April 7, 1986;
        (II) 20 percent of the inventories of Burley tobacco from the 
    1982 and 1984 crops on hand on April 7, 1986; and
        (III) 20 percent of the inventories of Burley tobacco from the 
    1983 crop held by the Commodity Credit Corporation on the date that 
    is 2 years after the call of the loans on such tobacco by the 
    Corporation.

    (E) Any purchases by a manufacturer from the inventories of the 
associations or from the Commodity Credit Corporation for a crop covered 
by this section in any year of the buy-out period that exceed the 
quantity of the purchases of the manufacturer required under the 
agreement, as determined under this section, shall be applied against 
future purchases required of such manufacturer.
    (3) In carrying out this section, manufacturers may confer with one 
another and, separately or collectively, with associations, the 
Secretary of Agriculture, and the Commodity Credit Corporation, as may 
be necessary or appropriate to carry out this section and the purposes 
of this subtitle.\1\
---------------------------------------------------------------------------
    \1\ See References in Text note below.
---------------------------------------------------------------------------

(d) Approval of agreements

    (1)(A) Each agreement entered into under this section shall be 
submitted to the Secretary of Agriculture for review and approval.
    (B) In the case of an agreement to purchase tobacco from the 
inventory of a producer association, the agreement shall be submitted by 
the association.
    (C) No agreement may become effective until approved by the 
Secretary.
    (2) The Secretary of Agriculture shall not approve any agreement 
submitted under this section unless the Secretary has determined that--
        (A) the agreement--
            (i) will not unduly impair or disrupt the orderly marketing 
        of current and future tobacco crops during the term of the 
        agreement; and
            (ii) is otherwise consistent with the purposes of this 
        subtitle; \1\ and

        (B) the price and other terms of sale are uniform and 
    nondiscriminatory among various purchasers.

(e) Disclosure

    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 
net cigarettes manufactured for use, including information provided on 
ATF Form 3068. 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.

(Pub. L. 99-272, title I, Sec. 1109, Apr. 7, 1986, 100 Stat. 95.)

                       References in Text

    This subtitle, referred to in subsecs. (c)(3) and (d)(2)(A)(ii), is 
subtitle B (Secs. 1101-1112) of title I of Pub. L. 99-272, Apr. 7, 1986, 
100 Stat. 83, which enacted sections 1314g, 1314h, and 1445-3 of this 
title, amended sections 511d, 1301, 1312, 1314c, 1314e, 1372, 1445, 
1445-1, and 1445-2 of this title, and enacted provisions set out as 
notes under sections 1301, 1314c, 1314e, 1314g, 1314h, 1372, 1445, 1445-
1, and 1445-2 of this title. For complete classification of this 
subtitle to the Code, see Tables.

                          Codification

    Section was enacted as part of the Consolidated Omnibus Budget 
Reconciliation Act of 1985, and not as part of the Agricultural Act of 
1949 which is classified principally to this chapter. For complete 
classification of the 1949 Act to the Code, see Short Title note set out 
under section 1421 of this title and Tables.


                          Rulemaking Procedures

    For implementation of this section by the Secretary of Agriculture 
without regard to 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 section 1445 of this title.
