7 U.S.C. § 518e — Tobacco Trust Fund

Page 446 TITLE 7—AGRICULTURE § 518e 1 See References in Text note below. of an assessment is incorrect, the Secretary shall revise the amount of the assessment so that the manufacturer or importer is required to pay only the amount correctly determined. (4) Time for review Not later than 30 days after receiving notice from a manufacturer or importer under para- graph (1), the Secretary shall— (A) decide whether the information pro- vided to the Secretary under paragraph (2), and any other information that the Sec- retary determines is appropriate, is suffi- cient to establish that the original assess- ment was incorrect; and (B) make any revisions necessary to en- sure that each manufacturer and importer pays only its correct pro rata share of total gross domestic volume from all sources. (5) Immediate payment of undisputed amounts The regulations promulgated by the Sec- retary under paragraph (2) shall provide for the immediate payment by a manufacturer or importer challenging an assessment of that portion of the assessment that is not in dis- pute. The manufacturer and importer may place into escrow, in accordance with such regulations, only the portion of the assess- ment being challenged in good faith pending final determination of the claim. (j) Judicial review (1) In general Any manufacturer or importer aggrieved by a determination of the Secretary with respect to the amount of any assessment may seek re- view of the determination in the United States District Court for the District of Columbia or for the district in which the manufacturer or importer resides or has its principal place of business at any time following exhaustion of the administrative remedies available under subsection (i). (2) Time limits Administrative remedies shall be deemed ex- hausted if no decision by the Secretary is made within the time limits established under subsection (i)(4). (3) Excessive assessments The court shall restrain collection of the ex- cessive portion of any assessment or order a refund of excessive assessments already paid, along with interest calculated at the rate pre- scribed in section 3717 of title 31, if it finds that the Secretary’s determination is not sup- ported by a preponderance of the information available to the Secretary. (k) Termination date The authority provided by this section to im- pose assessments terminates on September 30, 2014. (Pub. L. 108–357, title VI, § 625, Oct. 22, 2004, 118 Stat. 1529.) Editorial Notes REFERENCES IN TEXT The Harmonized Tariff Schedule of the United States, referred to in subsec. (a)(2)(B), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of Title 19, Customs Du- ties. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title. § 518e. Tobacco Trust Fund (a) Establishment There is established in the Commodity Credit Corporation a revolving trust fund, to be known as the ‘‘Tobacco Trust Fund’’, which shall be used in carrying out this subchapter. The To- bacco Trust Fund shall consist of the following: (1) Assessments collected under section 518d of this title. (2) Such amounts as are necessary from the Commodity Credit Corporation. (3) Any interest earned on investment of amounts in the Tobacco Trust Fund under subsection (c). (b) Expenditures (1) Authorized expenditures Subject to paragraph (2), and notwith- standing any other provision of law, the Sec- retary shall use amounts in the Tobacco Trust Fund, in such amounts as the Secretary deter- mines are necessary— (A) to make payments under sections 518a and 518b of this title; (B) to provide reimbursement under sec- tion 519(c) of this title; (C) to reimburse the Commodity Credit Corporation for costs incurred by the Com- modity Credit Corporation under paragraph (2); and (D) to make payments to financial institu- tions to satisfy contractual obligations under section 518a or 518b of this title. (2) Expenditures by Commodity Credit Cor- poration Notwithstanding any other provision of law, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Cor- poration to make payments described in para- graph (1). Not later than January 1, 2015, the Secretary shall use amounts in the Tobacco Trust Fund to fully reimburse, with interest, the Commodity Credit Corporation for all funds of the Commodity Credit Corporation expended under the authority of this para- graph. Administrative costs incurred by the Secretary or the Commodity Credit Corpora- tion to carry out this title 1 may not be paid using amounts in the Tobacco Trust Fund. (c) Investment of amounts (1) In general The Commodity Credit Corporation shall in- vest such portion of the amounts in the To- bacco Trust Fund as are not, in the judgment of the Commodity Credit Corporation, re- quired to meet current expenditures. Page 447 TITLE 7—AGRICULTURE § 519 (2) Interest-bearing obligations Investments may be made only in interest- bearing obligations of the United States. (3) Acquisition of obligations For the purpose of investments under para- graph (1), obligations may be acquired— (A) on original issue at the issue price; or (B) by purchase of outstanding obligations at the market price. (4) Sale of obligations Any obligation acquired by the Tobacco Trust Fund may be sold by the Commodity Credit Corporation at the market price. (5) Credits to Fund The interest on, and the proceeds from the sale or redemption of, any obligations held in the Tobacco Trust Fund shall be credited to and form a part of the Fund. (Pub. L. 108–357, title VI, § 626, Oct. 22, 2004, 118 Stat. 1533.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (b)(2), means title VI of Pub. L. 108–357, which enacted this chapter, amended sections 609, 1282, 1301, 1303, 1314h, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c–1, and 1441 of this title and section 714c of Title 15, Commerce and Trade, repealed sections 511r, 515 to 515k, 625, 1311 to 1314, 1314–1, 1314b, 1314b–1, 1314b–2, 1314c to 1314j, 1315, 1316, 1445, 1445–1, and 1445–2 of this title, enacted provisions set out as notes under sections 515 and 518 of this title, and repealed provi- sions set out as a note under section 1314c of this title. For complete classification of title VI to the Code, see Short Title note set out under section 518 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title. § 518f. Limitation on total expenditures The total amount expended by the Secretary from the Tobacco Trust Fund to make payments under sections 518a and 518b of this title and for the other authorized purposes of the Fund shall not exceed $10,140,000,000. (Pub. L. 108–357, title VI, § 627, Oct. 22, 2004, 118 Stat. 1534.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title. SUBCHAPTER II—IMPLEMENTATION AND TRANSITION § 519. Treatment of tobacco loan pool stocks and outstanding loan costs (a) Disposal of stocks To provide for the orderly disposition of quota tobacco held by an association that has entered into a loan agreement with the Commodity Credit Corporation under section 106A or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) (referred to in this section as an ‘‘asso- ciation’’), loan pool stocks for each kind of to- bacco held by the association shall be disposed of in accordance with this section. (b) Disposal by associations For each kind of tobacco held by an associa- tion, the association shall be responsible for the disposal of a specific quantity of the loan pool stocks for that kind of tobacco held by the asso- ciation. The quantity transferred to the associa- tion for disposal shall be equal to the quantity determined by dividing— (1) the amount of funds held by the associa- tion in the No Net Cost Tobacco Fund and the No Net Cost Tobacco Account established under sections 106A and 106B of the Agricul- tural Act of 1949 (7 U.S.C. 1445–1, 1445–2) for the kind of tobacco; by (2) the average list price per pound for the kind of tobacco, as determined by the Sec- retary. (c) Disposal of remainder by Commodity Credit Corporation (1) Disposal Any loan pool stocks of a kind of tobacco of an association that are not transferred to the association under subsection (b) for disposal shall be disposed of by Commodity Credit Cor- poration in a manner determined by the Sec- retary. (2) Reimbursement As required by section 518e(b)(1)(B) of this title, the Secretary shall transfer from the To- bacco Trust Fund to the No Net Cost Tobacco Fund or the No Net Cost Tobacco Account of an association established under section 106A or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) such amounts as the Secretary determines will be adequate to reimburse the Commodity Credit Corporation for any net losses that the Corporation may sustain under its loan agreements with the association. (d) Transfer of remaining no net cost funds Any funds in the No Net Cost Tobacco Fund or the No Net Cost Tobacco Account of an associa- tion established under sections 106A and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445–2) that remain after the application of sub- sections (b) and (c) shall be transferred to the association for distribution to producers of quota tobacco in accordance with a plan ap- proved by the Secretary. (Pub. L. 108–357, title VI, § 641, Oct. 22, 2004, 118 Stat. 1534.) Editorial Notes REFERENCES IN TEXT Sections 106A and 106B of the Agricultural Act of 1949, referred to in text, were classified to sections 1445–1 and 1445–2, respectively, of this title prior to re- peal by Pub. L. 108–357, title VI, § 612(a), Oct. 22, 2004, 118 Stat. 1523.