
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: 7USC7272]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
                    SUBCHAPTER IV--OTHER COMMODITIES
 
                        Part B--Peanuts and Sugar
 
Sec. 7272. Sugar program


(a) Sugarcane

    The Secretary shall make loans available to processors of 
domestically grown sugarcane at a rate equal to 18 cents per pound for 
raw cane sugar.

(b) Sugar beets

    The Secretary shall make loans available to processors of 
domestically grown sugar beets at a rate equal to 22.9 cents per pound 
for refined beet sugar.

(c) Reduction in loan rates

                       (1) Reduction required

        The Secretary shall reduce the loan rate specified in subsection 
    (a) of this section for domestically grown sugarcane and subsection 
    (b) of this section for domestically grown sugar beets if the 
    Secretary determines that negotiated reductions in export subsidies 
    and domestic subsidies provided for sugar of other major sugar 
    growing, producing, and exporting countries in the aggregate exceed 
    the commitments made as part of the Agreement on Agriculture.

                       (2) Extent of reduction

        The Secretary shall not reduce the loan rate under subsection 
    (a) or (b) of this section below a rate that provides an equal 
    measure of support to that provided by other major sugar growing, 
    producing, and exporting countries, based on an examination of both 
    domestic and export subsidies subject to reduction in the Agreement 
    on Agriculture.

                    (3) Announcement of reduction

        The Secretary shall announce any loan rate reduction to be made 
    under this subsection as far in advance as is practicable.

                           (4) Definitions

        In this subsection:

        (A) Agreement on Agriculture

            The term ``Agreement on Agriculture'' means the Agreement on 
        Agriculture referred to in section 3511(d)(2) of title 19.

        (B) Major sugar countries

            The term ``major sugar growing, producing, and exporting 
        countries'' means--
                (i) the countries of the European Union; and
                (ii) the 10 foreign countries not covered by 
            subparagraph (A) \1\ that the Secretary determines produce 
            the greatest quantity of sugar.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``clause (i)''.
---------------------------------------------------------------------------

(d) Term of loans

                           (1) In general

        A loan under this section during any fiscal year shall be made 
    available not earlier than the beginning of the fiscal year and 
    shall mature at the earlier of--
            (A) the end of the 9-month period beginning on the first day 
        of the first month after the month in which the loan is made; or
            (B) the end of the fiscal year in which the loan is made.

                       (2) Supplemental loans

        In the case of a loan made under this section in the last 3 
    months of a fiscal year, the processor may repledge the sugar as 
    collateral for a second loan in the subsequent fiscal year, except 
    that the second loan shall--
            (A) be made at the loan rate in effect at the time the 
        second loan is made; and
            (B) mature in 9 months less the quantity of time that the 
        first loan was in effect.

(e) Loan type; processor assurances

                        (1) Nonrecourse loans

        The Secretary shall carry out this section through the use of 
    nonrecourse loans.

                      (2) Processor assurances

        The Secretary shall obtain from each processor that receives a 
    loan under this section such assurances as the Secretary considers 
    adequate to ensure that the processor will provide payments to 
    producers that are proportional to the value of the loan received by 
    the processor for sugar beets and sugarcane delivered by producers 
    served by the processor. The Secretary may establish appropriate 
    minimum payments for purposes of this paragraph.

(f) Marketing assessment

                            (1) Sugarcane

        Effective for marketings of raw cane sugar during the 1996 
    through 2003 fiscal years, the first processor of sugarcane shall 
    remit to the Commodity Credit Corporation a nonrefundable marketing 
    assessment in an amount equal to--
            (A) in the case of marketings during fiscal year 1996, 1.1 
        percent of the loan rate established under subsection (a) of 
        this section per pound of raw cane sugar, processed by the 
        processor from domestically produced sugarcane or sugarcane 
        molasses, that has been marketed (including the transfer or 
        delivery of the sugar to a refinery for further processing or 
        marketing); and
            (B) in the case of marketings during each of fiscal years 
        1997 through 2003, 1.375 percent of the loan rate established 
        under subsection (a) of this section per pound of raw cane 
        sugar, processed by the processor from domestically produced 
        sugarcane or sugarcane molasses, that has been marketed 
        (including the transfer or delivery of the sugar to a refinery 
        for further processing or marketing).

                           (2) Sugar beets

        Effective for marketings of beet sugar during the 1996 through 
    2003 fiscal years, the first processor of sugar beets shall remit to 
    the Commodity Credit Corporation a nonrefundable marketing 
    assessment in an amount equal to--
            (A) in the case of marketings during fiscal year 1996, 
        1.1794 percent of the loan rate established under subsection (a) 
        of this section per pound of beet sugar, processed by the 
        processor from domestically produced sugar beets or sugar beet 
        molasses, that has been marketed; and
            (B) in the case of marketings during each of fiscal years 
        1997 through 2003, 1.47425 percent of the loan rate established 
        under subsection (a) of this section per pound of beet sugar, 
        processed by the processor from domestically produced sugar 
        beets or sugar beet molasses, that has been marketed.

                           (3) Collection

        (A) Timing

            A marketing assessment required under this subsection shall 
        be collected on a monthly basis and shall be remitted to the 
        Commodity Credit Corporation not later than 30 days after the 
        end of each month. Any cane sugar or beet sugar processed during 
        a fiscal year that has not been marketed by September 30 of the 
        year shall be subject to assessment on that date. The sugar 
        shall not be subject to a second assessment at the time that it 
        is marketed.

        (B) Manner

            Subject to subparagraph (A), marketing assessments shall be 
        collected under this subsection in the manner prescribed by the 
        Secretary and shall be nonrefundable.

                            (4) Penalties

        If any person fails to remit the assessment required by this 
    subsection or fails to comply with such requirements for 
    recordkeeping or otherwise as are required by the Secretary to carry 
    out this subsection, the person shall be liable to the Secretary for 
    a civil penalty up to an amount determined by multiplying--
            (A) the quantity of cane sugar or beet sugar involved in the 
        violation; by
            (B) the loan rate for the applicable crop of sugarcane or 
        sugar beets.

                           (5) Enforcement

        The Secretary may enforce this subsection in a court of the 
    United States.

(g) Forfeiture penalty

                           (1) In general

        A penalty shall be assessed on the forfeiture of any sugar 
    pledged as collateral for a nonrecourse loan under this section.

                           (2) Cane sugar

        The penalty for cane sugar shall be 1 cent per pound.

                           (3) Beet sugar

        The penalty for beet sugar shall bear the same relation to the 
    penalty for cane sugar as the marketing assessment for sugar beets 
    bears to the marketing assessment for sugarcane.

                      (4) Effect of forfeiture

        Any payments owed producers by a processor that forfeits any 
    sugar pledged as collateral for a nonrecourse loan shall be reduced 
    in proportion to the loan forfeiture penalty incurred by the 
    processor.

(h) Information reporting

            (1) Duty of processors and refiners to report

        A sugarcane processor, cane sugar refiner, and sugar beet 
    processor shall furnish the Secretary, on a monthly basis, such 
    information as the Secretary may require to administer sugar 
    programs, including the quantity of purchases of sugarcane, sugar 
    beets, and sugar, and production, importation, distribution, and 
    stock levels of sugar.

                             (2) Penalty

        Any person willfully failing or refusing to furnish the 
    information, or furnishing willfully any false information, shall be 
    subject to a civil penalty of not more than $10,000 for each such 
    violation.

                         (3) Monthly reports

        Taking into consideration the information received under 
    paragraph (1), the Secretary shall publish on a monthly basis 
    composite data on production, imports, distribution, and stock 
    levels of sugar.

(i) Crops

    This section (other than subsection (f) of this section) shall be 
effective only for the 1996 through 2002 crops of sugar beets and 
sugarcane.

(Pub. L. 104-127, title I, Sec. 156, Apr. 4, 1996, 110 Stat. 931; Pub. 
L. 106-387, Sec. 1(a) [title VIII, Sec. 836], Oct. 28, 2000, 114 Stat. 
1549, 1549A-62.)


                               Amendments

    2000--Subsec. (e)(1). Pub. L. 106-387, Sec. 1(a) [title VIII, 
Sec. 836(1)(B)], substituted ``The'' for ``Subject to paragraph (2), 
the''.
    Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 836(1)(A)], substituted 
``nonrecourse'' for ``recourse''.
    Subsec. (e)(2), (3). Pub. L. 106-387, Sec. 1(a) [title VIII, 
Sec. 836(2)-(4)], redesignated par. (3) as (2), substituted ``The 
Secretary shall'' for ``If the Secretary is required under paragraph (2) 
to make nonrecourse loans available during a fiscal year or to change 
recourse loans into nonrecourse loans, the Secretary shall'', and struck 
out heading and text of former par. (2). Text read as follows: ``During 
any fiscal year in which the tariff rate quota for imports of sugar into 
the United States is established at, or is increased to, a level in 
excess of 1,500,000 short tons raw value, the Secretary shall carry out 
this section by making available nonrecourse loans. Any recourse loan 
previously made available by the Secretary under this section during the 
fiscal year shall be changed by the Secretary into a nonrecourse loan.''


                               Regulations

    Pub. L. 106-387, Sec. 1(a) [title VIII, Sec. 840], Oct. 28, 2000, 
114 Stat. 1549, 1549A-63, provided that: ``As soon as practicable after 
the date of enactment of this Act [Oct. 28, 2000], the Secretary and the 
Commodity Credit Corporation, as appropriate, shall issue such 
regulations as are necessary to implement sections 804, 805, 806, 809, 
810, 811, 812, 814, 815, 816, 836, 837, 838, 839, 841, 843, 844, and 845 
of this title [amending this section and section 3720B of Title 31, 
Money and Finance, enacting provisions set out as notes under section 
3720B of Title 31, and amending provisions set out as a note under 
section 1421 of this title]: Provided, That the issuance of the 
regulations shall be made without regard to: (1) the notice and comment 
provisions of section 553 of title 5, United States Code; (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, 
United States Code (commonly known as the `Paperwork Reduction Act'): 
Provided further, That in carrying out this section, the Secretary shall 
use the authority provided under section 808 of title 5, United States 
Code.''
