7 USC CHAPTER 35, SUBCHAPTER II, Part B, subpart vii: marketing quotas-sugar and crystalline fructose

From Title 7—AGRICULTURECHAPTER 35—AGRICULTURAL ADJUSTMENT ACT OF 1938SUBCHAPTER II—LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATESPart B—Marketing Quotas

subpart vii—marketing quotas—sugar and crystalline fructose

Subpart Referred to in Other Sections

This subpart is referred to in section 7301 of this title.

§1359aa. Information reporting

(a) Duty of processors, refiners and manufacturers to report

(1) Processors and refiners

All sugarcane processors, cane sugar refiners, and sugar beet processors 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) Manufacturers of crystalline fructose

All manufacturers of crystalline fructose from corn (hereafter in this subpart referred to as "crystalline fructose") shall furnish the Secretary, on a monthly basis, such information as the Secretary may require with respect to the manufacturer's distribution of crystalline fructose.

(b) Duty of producers to report

The Secretary may require a producer of sugarcane or sugar beets to report, in the manner prescribed by the Secretary, the producer's sugarcane or sugar beet yields and acres planted to sugarcane or sugar beets, respectively.

(c) 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.

(d) Monthly reports

Taking into consideration the information received under subsection (a) of this section, the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar and composite data on distributions of crystalline fructose.

(Feb. 16, 1938, ch. 30, title III, §359a, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3479; amended Pub. L. 102–237, title I, §111(c), Dec. 13, 1991, 105 Stat. 1830.)

Codification

Another section 359a of act Feb. 16, 1938, was renumbered section 359e and is classified to section 1359a of this title.

Amendments

1991—Subsec. (a). Pub. L. 102–237, §111(c)(1), added subsec. (a) and struck out former subsec. (a) which read as follows: "All cane sugar refiners and sugar beet processors and all manufacturers of crystalline fructose from corn (hereafter in this subpart referred to as 'crystalline fructose') shall furnish the Secretary, on a monthly basis, such information as the Secretary may require with respect to the person's importation, distribution, and stock levels of sugar or crystalline fructose, respectively."

Subsecs. (b), (c). Pub. L. 102–237, §111(c)(2), (3), added subsec. (b) and redesignated former subsecs. (b) and (c) as (c) and (d), respectively.

Subsec. (d). Pub. L. 102–237, §111(c)(2), (4), redesignated subsec. (c) as (d), substituted "data on production, imports," for "data on imports," and inserted "composite data on distributions of" after "sugar and".

Effective Date

Subpart effective beginning with the 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 1421 of this title.

Inapplicability of Section

Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(a)(1)(E) of this title.

Section Referred to in Other Sections

This section is referred to in section 1359jj of this title.

§1359bb. Marketing allotments for sugar and crystalline fructose

(a) Sugar estimates

(1) In general

Before the beginning of each of the fiscal years 1992 through 1998, the Secretary shall estimate—

(A) the quantity of sugar that will be consumed in the United States during the fiscal year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in sugar containing products) and the quantity of sugar that would provide for reasonable carryover stocks;

(B) the quantity of sugar that will be available from carry-in stocks or from domestically-produced sugarcane and sugar beets for consumption in the United States during the year; and

(C) the quantity of sugar that will be imported for consumption in the United States during the year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in a refined form or in sugar containing products), based on the difference between—

(i) the sum of the quantity of estimated consumption and reasonable carryover stocks; and

(ii) the quantity of sugar estimated to be available from domestically-produced sugarcane and sugar beets and from carry-in stocks.

(2) Quarterly reestimates

The Secretary shall make quarterly reestimates of sugar consumption, stocks, production, and imports for a fiscal year no later than the beginning of each of the second through fourth quarters of the fiscal year.

(b) Sugar allotments

(1) In general

For any fiscal year in which the Secretary estimates, under subsection (a)(1)(C) of this section, that imports of sugar for consumption in the United States (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in sugar containing products) will be less than 1,250,000 short tons, raw value, the Secretary shall establish for that year appropriate allotments under section 1359cc of this title for the marketing by processors of sugar processed from domestically-produced sugarcane and sugar beets, at a level that the Secretary estimates will result in imports of sugar of not less than 1,250,000 short tons, raw value, for that year.

(2) Products

The Secretary may include sugar products, whose majority content is sucrose or crystalline fructose for human consumption, derived from sugarcane, sugar beets, molasses or sugar in the allotments under paragraph (1) if the Secretary determines it to be appropriate for purposes of this subpart.

(c) Crystalline fructose allotments

For any fiscal year in which the Secretary establishes allotments for the marketing of sugar under section 1359cc of this title, the Secretary shall establish for that year appropriate allotments for the marketing by manufacturers of crystalline fructose manufactured from corn, at a total level not to exceed the equivalent of 200,000 tons of sugar, raw value, during the fiscal year, in a manner that is fair, efficient, and equitable to manufacturers.

(d) Prohibitions

(1) In general

During any fiscal year or portion thereof for which marketing allotments have been established, no processor of sugar beets or sugarcane shall market a quantity of sugar in excess of the allocation established for such processor, except to enable another processor to fulfill an allocation established for such other processor or to facilitate the exportation of such sugar.

(2) Crystalline fructose

At any time crystalline fructose allotments are in effect for manufacturers under subsection (c) of this section, no manufacturer may market crystalline fructose in excess of the manufacturer's allotment. No restrictions or allotments shall be established on the marketings of any liquid fructose produced from corn.

(3) Civil penalty

Any processor who knowingly violates paragraph (1) or manufacturer who knowingly violates paragraph (2) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the United States market value, at the time of the commission of the violation, of that quantity of sugar or crystalline fructose involved in the violation.

(4) "Market" defined

For purposes of this subpart, the term "market" shall mean to sell or otherwise dispose of in commerce in the United States (including, with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process).

(Feb. 16, 1938, ch. 30, title III, §359b, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3480; amended Pub. L. 102–237, title I, §111(d), Dec. 13, 1991, 105 Stat. 1831; Pub. L. 103–66, title I, §1107(b), Aug. 10, 1993, 107 Stat. 324.)

Amendments

1993—Subsec. (a)(1). Pub. L. 103–66, §1107(b)(1), substituted "1998" for "1996".

Subsec. (d)(1). Pub. L. 103–66, §1107(b)(2)(A), added par. (1) and struck out former par. (1) which read as follows: "Sugar.—

"(A) Exceeding allocation.—At any time allotments are in effect and allocated to processors under section 1359dd of this title, the total of—

"(i) the quantity of sugar marketed by a processor, plus

"(ii) the quantity of sugar pledged as collateral by the processor for a price support loan under section 1446g of this title,

shall not exceed the quantity of the allocation of the allotment made to the processor.

"(B) Exceptions.—Subparagraph (A) shall not apply—

"(i) to the marketing during a fiscal year of sugar pledged in that fiscal year as collateral for a price support loan under section 1446g of this title after the sugar has been subsequently redeemed; or

"(ii) to any sale of sugar by a processor to another processor made to enable the other processor to fulfill the quantity of the allocation of the allotment made to the other processor."

Subsec. (d)(3). Pub. L. 103–66, §1107(b)(2)(B), inserted "knowingly" after "who" in two places.

1991—Subsec. (a). Pub. L. 102–237, §111(d)(1), added subsec. (a) and struck out former subsec. (a) which read as follows:

"(1) In general.—Before the beginning of each of the fiscal years 1992 through 1996, the Secretary shall estimate—

"(A) the quantity of sugar that will be consumed in the customs territory of the United States during the fiscal year (other than sugar imported for purposes other than human consumption);

"(B) the quantity of sugar that will be available from carry-in stocks or from domestically-produced sugarcane and sugar beets for consumption in the United States during the year; and

"(C) the quantity of sugar that will be imported for consumption during the year (other than sugar imported for purposes other than human consumption), based on the difference between—

"(i) the quantity of estimated consumption; and

"(ii) the quantity of sugar estimated to be available from domestically-produced sugarcane and sugar beets and from carry-in stocks.

"(2) Quarterly reestimates.—The Secretary shall make quarterly reestimates of sugar consumption, availability, and imports for a fiscal year no later than the beginning of each of the second through fourth quarters of the fiscal year."

Subsec. (b). Pub. L. 102–237, §111(d)(2), added subsec. (b) and struck out former subsec. (b) which read as follows:

"(1) In general.—For any fiscal year in which the Secretary estimates, under subsection (a) of this section, that imports of sugar for consumption in the United States will be less than 1,250,000 short tons, raw value, the Secretary shall establish for that year appropriate allotments under section 1359cc of this title for the marketing by processors of sugar processed from domestically-produced sugarcane and sugar beets in a manner that is fair, efficient, and equitable to producers, processors, and refiners, at a level that the Secretary estimates will result in imports of sugar of not less than 1,250,000 short tons, raw value, for that year.

"(2) Products.—The Secretary may include products of sugar in the allotments under paragraph (1) if the Secretary determines it to be appropriate for purposes of this subpart."

Subsec. (d)(4). Pub. L. 102–237, §111(d)(3), inserted "(including, with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process)" after "United States".

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in sections 1359cc, 1359jj of this title.

§1359cc. Establishment of marketing allotments

(a) In general

The Secretary shall establish marketing allotments for sugar for any fiscal year in which the allotments are required under section 1359bb(b) of this title in accordance with this section.

(b) Overall allotment quantity

(1) In general

The Secretary shall establish the overall quantity of sugar to be allotted for the fiscal year (hereafter in this subpart referred to as the "overall allotment quantity") by deducting from the sum of the estimated sugar consumption and reasonable carryover stocks (at the end of the fiscal year) for the fiscal year, as determined under section 1359bb(a) of this title—

(A) 1,250,000 short tons, raw value; and

(B) carry-in stocks of sugar, including sugar in Commodity Credit Corporation inventory.

(2) Adjustment

The Secretary shall adjust the overall allotment quantity to the maximum extent practicable to avoid the forfeiture of sugar to the Commodity Credit Corporation.

(c) Allotment

The overall allotment quantity for the fiscal year shall be allotted among—

(1) sugar derived from sugar beets; and

(2) sugar derived from sugarcane.

(d) Percentage factors

(1) In general

The Secretary shall establish percentage factors for the overall beet sugar and cane sugar allotments applicable for a fiscal year. The Secretary shall establish the percentage factors in a fair and equitable manner on the basis of past marketings of sugar (considering for such purposes the marketings of sugar processed from sugarcane and sugar beets of any or all of the 1985 through 1989 crops), processing and refining capacity, and the ability of processors to market the sugar covered under the allotments.

(2) Publication

The Secretary shall publish these percentage factors in the Federal Register, along with a description of the Secretary's reasons for establishing the factors, as provided in section 1359hh(c) of this title.

(e) Marketing allotment

The marketing allotment for sugar derived from sugarcane and the marketing allotment for sugar derived from sugar beets for a fiscal year, in each case, shall be a quantity equal to the product of multiplying the overall allotment quantity for the fiscal year by the percentage factor established by the Secretary under subsection (d)(1) of this section for the allotment.

(f) State cane sugar allotments

The allotment for sugar derived from sugarcane shall be further allotted, among the 5 States in the United States in which sugarcane is produced, in a fair and equitable manner on the basis of past marketings of sugar (considering for such purposes the average of marketings of sugar processed from sugarcane in the 2 highest years of production from each State from the 1985 through 1989 crops), processing capacity, and the ability of processors to market the sugar covered under the allotments.

(g) Adjustment of marketing allotments

(1) In general

The Secretary shall, based on reestimates under section 1359bb(a)(2) of this title—

(A) adjust upward or downward marketing allotments established under subsections (a) through (f) of this section in a fair and equitable manner;

(B) establish marketing allotments for the fiscal year or any portion of such fiscal year; or

as the Secretary determines appropriate, to reflect changes in estimated sugar consumption, stocks, production, or imports.

(2) Allocation to processors

In the case of any increase or decrease in an allotment, each allocation to a processor of the allotment under section 1359dd of this title, and each proportionate share established with respect to the allotment under section 1359ff(b) of this title, shall be increased or decreased by the same percentage that the allotment is increased or decreased.

(3) Reductions

Whenever a marketing allotment for a fiscal year is required to be reduced during the fiscal year under this subsection, if the quantity of sugar marketed, including sugar pledged as collateral for a price support loan under section 1446g ¹ of this title, for the fiscal year at the time of the reduction by any individual processor covered by the allotment exceeds the processor's reduced allocation, the allocation of an allotment, if any, next established for the processor shall be reduced by the quantity of the excess sugar marketed.

(h) Filling cane sugar and beet sugar allotments

Each marketing allotment for cane sugar established under this section may only be filled with sugar processed from domestically grown sugarcane, and each marketing allotment for beet sugar established under this section may only be filled with sugar processed from domestically grown sugar beets.

(Feb. 16, 1938, ch. 30, title III, §359c, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3481; amended Pub. L. 102–237, title I, §111(e), Dec. 13, 1991, 105 Stat. 1832.)

References in Text

Section 1446g of this title, referred to in subsec. (g)(3), was repealed by Pub. L. 104–127, title I, §171(b)(2)(H), Apr. 4, 1996, 110 Stat. 938.

Amendments

1991—Subsec. (b)(1). Pub. L. 102–237, §111(e)(1), in introductory provisions, substituted "from the sum of the estimated sugar consumption and reasonable carryover stocks (at the end of the fiscal year)" for "from the estimated sugar consumption" and in subpar. (A) struck out "(representing minimum imports of sugar for consumption in the United States during the fiscal year)" after "raw value".

Subsec. (b)(2). Pub. L. 102–237, §111(e)(2), substituted "avoid the forfeiture of sugar to" for "prevent the accumulation of sugar acquired by".

Subsec. (f). Pub. L. 102–237, §111(e)(3), in heading substituted "cane sugar allotments" for "sugarcane allotment" and in text substituted "allotted, among" for "allotted among" and "produced," for "produced".

Subsec. (g)(1). Pub. L. 102–237, §111(e)(4)(A), added par. (1) and struck out former par. (1) which read as follows: "The Secretary shall, based on reestimates under section 1359bb(a)(2) of this title, adjust upward or downward marketing allotments established under subsections (a) through (f) of this section in a fair and equitable manner, or suspend the allotments, as the Secretary determines appropriate, to reflect changes in estimated sugar consumption, availability, or imports."

Subsec. (g)(3). Pub. L. 102–237, §111(e)(4)(B), added par. (3) and struck out former par. (3) which read as follows: "Whenever a marketing allotment for a fiscal year is required to be reduced during the fiscal year under this paragraph—

"(A) if the quantity of the sugar marketed, including sugar pledged as collateral for a price support loan under section 1446g of this title, for the fiscal year at the time of the reduction under the allotment by all processors covered by the allotment exceeds the reduced allotment, the quantity of the excess sugar marketed shall be deducted—

"(i) if beet sugar is involved, from the marketing allotment, if any, next established for beet sugar; or

"(ii) if cane sugar is involved, from the marketing allotment next established for the State; and

"(B) if the quantity of sugar marketed, including sugar pledged as collateral for a price support loan under section 1446g of this title, for the fiscal year at the time of the reduction by any individual processor covered by the allotment exceeds the processor's reduced allocation, the quantity of the excess sugar marketed shall be deducted from the allocation of an allotment, if any, next established for the processor."

Subsec. (h). Pub. L. 102–237, §111(e)(5), added subsec. (h) and struck out former subsec. (h) "Filling sugarcane and sugar beet allotments" which read as follows: "Except as otherwise provided in section 1359ee of this title, each marketing allotment of sugarcane established under this section may only be filled with sugar processed from domestically grown sugarcane, and each marketing allotment of sugar beets established under this section may only be filled with sugar processed from domestically grown sugar beets."

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in sections 1359bb, 1359dd, 1359ff, 1359jj of this title.

¹ See References in Text note below.

§1359dd. Allocation of marketing allotments

(a) In general

(1) Allocation to processors

Whenever marketing allotments are established for a fiscal year under section 1359cc of this title, in order to afford all interested persons an equitable opportunity to market sugar under an allotment, the Secretary shall allocate each such allotment among the processors covered by the allotment.

(2) Hearing and notice

(A) Cane sugar

The Secretary shall make allocations for cane sugar after a hearing, if requested by interested parties, and on such notice as the Secretary by regulation may prescribe, in such manner and in such quantities as to provide a fair, efficient, and equitable distribution of the allocations by taking into consideration processing capacity, past marketings of sugar, and the ability of each processor to market sugar covered by that portion of the allotment allocated. Each such allocation shall be subject to adjustment under section 1359cc(g) of this title.

(B) Beet sugar

The Secretary shall make allocations for beet sugar after a hearing, if requested by interested parties, and on such notice as the Secretary by regulation may prescribe, in such manner and in such quantities as to provide a fair, efficient, and equitable distribution of the allocations by taking into consideration processing capacity, past marketings of sugar (considering for the purposes the marketings of sugar processed from sugar beets of any or all of the 1985 through 1989 crops), and the ability of each processor to market sugar covered by that portion of the allotment allocated. Each such allocation shall be subject to adjustment under section 1359cc(g) of this title.

(b) Filling cane sugar allotments

Except as otherwise provided in section 1359ee of this title, a State cane sugar allotment established under section 1359cc(f) of this title for a fiscal year may be filled only with sugar processed from sugarcane grown in the State covered by the allotment.

(Feb. 16, 1938, ch. 30, title III, §359d, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3483; amended Pub. L. 102–237, title I, §111(f), Dec. 13, 1991, 105 Stat. 1833.)

Amendments

1991—Subsec. (a)(2)(A), (B). Pub. L. 102–237, §111(f)(1), substituted "after a hearing, if requested by interested parties," for "after such hearing".

Subsec. (b). Pub. L. 102–237, §111(f)(2), added subsec. (b) and struck out former subsec. (b) which read as follows: "Except as otherwise provided in section 1359ee of this title, the marketing allotment established for cane sugar under this subpart for a fiscal year may be filled only with sugar processed from sugarcane grown in the State covered by the allotment."

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in sections 1359cc, 1359ff, 1359gg, 1359ii, 1359jj of this title.

§1359ee. Reassignment of deficits

(a) Estimates of deficits

At any time allotments are in effect under this subpart, the Secretary, from time to time, shall determine whether (in view of then-current inventories of sugar, the estimated production of sugar and expected marketings, and other pertinent factors) any processor of sugarcane will be unable to market the sugar covered by the portion of the State cane sugar allotment allocated to the processor and whether any processor of sugar beets will be unable to market sugar covered by the portion of the beet sugar allotment allocated to the processor.

(b) Reassignment of deficits

(1) Cane sugar

If the Secretary determines that any sugarcane processor who has been allocated a share of a State cane sugar allotment will be unable to market the processor's allocation of the State's allotment for the fiscal year—

(A) the Secretary first shall reassign the estimated quantity of the deficit to the allocations for other processors within that State, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it and taking into account the interests of producers served by the processors;

(B) if after the reassignments the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit proportionately to the allotments for other cane sugar States, depending on the capacity of each other State to fill the portion of the deficit to be assigned to it, with the reassigned quantity to each State to be allocated among processors in that State in proportion to the allocations of the processors; and

(C) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports.

(2) Beet sugar

If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment will be unable to market that allocation—

(A) the Secretary first shall reassign the estimated quantity of the deficit to the allotments for other sugar beet processors, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it and taking into account the interests of producers served by the processors; and

(B) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports.

(3) Corresponding increase

The allocation of each processor receiving a reassigned quantity of an allotment under this subsection for a fiscal year shall be increased to reflect the reassignment.

(Feb. 16, 1938, ch. 30, title III, §359e, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3484; amended Pub. L. 102–237, title I, §111(g), Dec. 13, 1991, 105 Stat. 1833.)

Amendments

1991—Pub. L. 102–237 amended section generally, substituting present provisions for provisions relating to assignment of deficits, estimates of production and marketing of sugar, and reassignment of deficits in case of undermarketing of cane and beet sugar.

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in sections 1359dd, 1359jj of this title.

§1359ff. Provisions applicable to producers

(a) Processor assurances

Whenever allotments for a fiscal year are allocated to processors under section 1359dd of this title, the Secretary shall obtain from the processors such assurances as the Secretary considers adequate that the allocation will be shared among producers served by the processor in a fair and equitable manner that adequately reflects producers' production histories. Any dispute between a processor and a producer, or group of producers, with respect to the sharing of the processor's allocation shall be resolved through arbitration by the Secretary on the request of either party.

(b) Proportionate shares of certain allotments

(1) In general

(A) States affected

In any case in which a State allotment is established under section 1359cc(f) of this title and there are in excess of 250 sugarcane producers in the State (other than Puerto Rico), the Secretary shall make a determination under subparagraph (B).

(B) Determination

The Secretary shall determine, for each State allotment described in subparagraph (A), whether the production of sugarcane, in the absence of proportionate shares, will be greater than the quantity needed to enable processors to fill the allotment and provide a normal carryover inventory of sugar.

(2) Establishment of proportionate shares

If the Secretary determines under paragraph (1) that the quantity of sugarcane produced by producers in the area covered by a State allotment for a fiscal year will be in excess of the quantity needed to enable processors to fill the allotment for the fiscal year and provide a normal carryover inventory of sugar, the Secretary shall establish a proportionate share for each sugarcane-producing farm that limits the acreage of sugarcane that may be harvested on the farm for sugar or seed during the fiscal year the allotment is in effect as provided in this subsection. Each such proportionate share shall be subject to adjustment under paragraph (7) and section 1359cc(g) of this title.

(3) Method of determining

For purposes of determining proportionate shares for any crop of sugarcane:

(A) The Secretary shall establish the State's per-acre yield goal for a crop of sugarcane at a level (not less than the average per-acre yield in the State for the preceding 5 years, as determined by the Secretary) that will ensure an adequate net return per pound to producers in the State, taking into consideration any available production research data that the Secretary considers relevant.

(B) The Secretary shall adjust the per-acre yield goal by the average recovery rate of sugar produced from sugarcane by processors in the State.

(C) The Secretary shall convert the State allotment for the fiscal year involved into a State acreage allotment for the crop by dividing the State allotment by the per-acre yield goal for the State, as established under subparagraph (A) and as further adjusted under subparagraph (B).

(D) The Secretary shall establish a uniform reduction percentage for the crop by dividing the State acreage allotment, as determined for the crop under subparagraph (C), by the sum of all adjusted acreage bases in the State, as determined by the Secretary.

(E) The uniform reduction percentage for the crop, as determined under subparagraph (D), shall be applied to the acreage base for each sugarcane-producing farm in the State to determine the farm's proportionate share of sugarcane acreage that may be harvested for sugar or seed.

(4) Acreage base

For purposes of this subsection, the acreage base for each sugarcane-producing farm shall be determined by the Secretary, as follows:

(A) The acreage base for any farm shall be the number of acres that is equal to the average of the acreage planted and considered planted for harvest for sugar or seed on the farm in each of the 5 crop years preceding the fiscal year the proportionate share will be in effect.

(B) Acreage planted to sugarcane that producers on a farm were unable to harvest to sugarcane for sugar or seed because of drought, flood, other natural disaster, or other condition beyond the control of the producers may be considered as harvested for the production of sugar or seed for purposes of this paragraph.

(5) Violation

(A) In general

Whenever proportionate shares are in effect in a State for a crop of sugarcane, producers on a farm shall not knowingly harvest, or allow to be harvested, for sugar or seed an acreage of sugarcane in excess of the farm's proportionate share for the fiscal year, or otherwise violate proportionate share regulations issued by the Secretary under section 1359hh(a) of this title.

(B) Determination of violation

No producer shall be considered to have violated subparagraph (A) unless the processor of the sugarcane harvested by such producer from acreage in excess of the proportionate share of the farm markets an amount of sugar that exceeds the allocation of such processor for a fiscal year.

(C) Civil penalty

Any producer on a farm who violates subparagraph (A) by knowingly harvesting, or allowing to be harvested, an acreage of sugarcane in excess of the farm's proportionate share shall be liable to the Commodity Credit Corporation for a civil penalty equal to one and one-half times the United States market value of the quantity of sugar that is marketed by the processor of such sugarcane in excess of the allocation of such processor for the fiscal year. The Secretary shall prorate penalties imposed under this subparagraph in a fair and equitable manner among all the producers of sugarcane harvested from excess acreage that is acquired by such processor.

(6) Waiver

Notwithstanding the preceding subparagraph, the Secretary may authorize the county and State committees established under section 590h(b) of title 16 to waive or modify deadlines and other proportionate share requirements in cases in which lateness or failure to meet the other requirements does not affect adversely the operation of proportionate shares.

(7) Adjustments

Whenever the Secretary determines that, because of a natural disaster or other condition beyond the control of producers that adversely affects a crop of sugarcane subject to proportionate shares, the amount of sugarcane produced by producers subject to the proportionate shares will not be sufficient to enable processors in the State to meet the State's cane sugar allotment and provide a normal carryover inventory of sugar, the Secretary may uniformly allow producers to harvest an amount of sugarcane in excess of their proportionate share, or suspend proportionate shares entirely, as necessary to enable processors to meet the State allotment and provide a normal carryover inventory of sugar.

(Feb. 16, 1938, ch. 30, title III, §359f, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3484; amended Pub. L. 102–237, title I, §111(h), Dec. 13, 1991, 105 Stat. 1834; Pub. L. 102–535, Oct. 27, 1992, 106 Stat. 3526.)

Amendments

1992—Subsec. (b)(1)(B). Pub. L. 102–535, §3(a), substituted "production of sugarcane" for "production of sugar" and inserted "of sugar" before period at end.

Subsec. (b)(2). Pub. L. 102–535, §3(b), (c), substituted "sugarcane produced by producers in the area" for "sugar processed from all crops by all processors" and inserted "of sugar" after "provide a normal carryover inventory" and "paragraph (7) and" after "adjustment under".

Subsec. (b)(5)(B), (C). Pub. L. 102–535, §1, added subpars. (B) and (C) and struck out former subpar. (B) which read as follows: "(B) Civil penalty.—Any producer who violates subparagraph (A) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the United States market value, at the time of the commission of the violation, of the quantity of sugar produced from that quantity of sugarcane involved in the violation. The quantity of sugarcane involved shall be determined based on the per-acre yield goal established under paragraph (3)."

Subsec. (b)(7). Pub. L. 102–535, §2, added par. (7).

1991—Subsec. (b)(1)(A). Pub. L. 102–237, §111(h)(1), substituted "250 sugarcane producers in the State (other than Puerto Rico)" for "250 producers in such State".

Subsec. (b)(2)(A). Pub. L. 102–237, §111(h)(2), substituted "establish a proportionate share for each sugarcane-producing farm that limits the acreage of sugarcane that may be harvested on the farm for sugar or seed during" for "establish proportionate shares for the crop of sugarcane that is harvested during".

Subsec. (b)(3). Pub. L. 102–237, §111(h)(3), added par. (3) and struck out former par. (3) which read as follows: "For purposes of determining proportionate shares for any crop of sugarcane:

"(A) The Secretary shall establish the State's per-acre yield goal for a crop at a level (not less than the average per-acre yield in the State for the preceding 5 years, as determined by the Secretary) that will ensure an adequate net return per pound to producers in the State, taking into consideration any available production research data that the Secretary deems relevant.

"(B) The Secretary shall convert the State allotment for the fiscal year involved into a State acreage allotment for the crop by dividing the State allotment by the per-acre yield goal for the State, as established under subparagraph (A).

"(C) The Secretary shall establish a uniform reduction percentage for the crop by dividing the State acreage allotment, as determined for the crop under subparagraph (B), by the sum of all acreage bases in the State, as determined by the Secretary, that the Secretary estimates would otherwise be harvested for the production of the crop of sugarcane.

"(D) The uniform reduction percentage for the crop, as determined under subparagraph (C), shall be applied to the acreage base for each farm covered by the State allotment to determine the farm's proportionate share for the crop."

Subsec. (b)(4). Pub. L. 102–237, §111(h)(3), added par. (4) and struck out former par. (4) which read as follows: "For purposes of this subsection, the acreage base for each sugarcane-producing farm shall be determined by the Secretary, as follows:

"(A) The acreage base for any crop shall be the number of acres that is equal to the average of the acreage planted and considered planted for harvest for sugar or seed on the farm in each of the 5 crop years preceding the crop year.

"(B) Acreage that producers on a farm were unable to harvest to sugarcane for sugar or seed because of drought, flood, other natural disaster, or other condition beyond the control of the producers shall be considered as harvested to sugarcane for sugar or seed for purposes of this paragraph."

Subsec. (b)(5). Pub. L. 102–237, §111(h)(3), added par. (5) and struck out former par. (5) which read as follows:

"(A) In general.—Whenever proportionate shares are in effect in a State for a crop of sugarcane, no producer in the State knowingly may harvest for sugar or seed an acreage of sugarcane of the crop in excess of the farm's proportionate share for the crop or otherwise violate proportionate share regulations issued by the Secretary under section 1359hh(a) of this title.

"(B) Civil penalty.—Any producer who violates subparagraph (A) shall be liable to the Commodity Credit Corporation for a civil penalty in an amount equal to 3 times the United States market value, at the time of the commission of the violation, of that quantity of sugar involved in the violation. The quantity of sugar involved shall be determined based on the per-acre yield goal established under paragraph (3)."

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in sections 1359cc, 1359gg, 1359ii, 1359jj of this title.

§1359gg. Special rules

(a) Transfer of acreage base history

For the purpose of establishing proportionate shares for sugarcane farms under section 1359ff of this title, the Secretary, on application of any producer, with the written consent of all owners of a farm, may transfer the acreage base history of the farm to any other parcels of land of the applicant.

(b) Preservation of acreage base history

If for reasons beyond the control of a producer on a farm, the producer is unable to harvest an acreage of sugarcane for sugar or seed with respect to all or a portion of the proportionate share established for the farm under section 1359ff of this title, the Secretary, on the application of the producer and with the written consent of all owners of the farm, may preserve for a period of not more than 3 consecutive years the acreage base history of the farm to the extent of the proportionate share involved. The Secretary may permit the proportionate share to be redistributed to other farms, but no acreage base history for purposes of establishing acreage bases shall accrue to the other farms by virtue of the redistribution of the proportionate share.

(c) Revisions of allocations and proportionate shares

The Secretary, after such notice as the Secretary by regulation may prescribe, may revise or amend any allocation of a marketing allotment under section 1359dd of this title, or any proportionate share established for a farm under section 1359ff of this title, on the same basis as the initial allocation or proportionate share was required to be established.

(Feb. 16, 1938, ch. 30, title III, §359g, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3486; amended Pub. L. 102–237, title I, §111(i), Dec. 13, 1991, 105 Stat. 1835.)

Amendments

1991—Subsecs. (a) and (b). Pub. L. 102–237, §111(i)(1), added subsecs. (a) and (b) and struck out former subsecs. (a) and (b) which read as follows:

"(a) Transfer of Production History.—For the purpose of establishing proportionate shares for producers under section 1359ff of this title, the Secretary, on application of any producer, may transfer the production history of land owned, operated, or controlled by the producers to any other parcels of land of the applicant.

"(b) Reservation of Production History.—If for reasons beyond the control of an owner of a farm, the owner is unable to use all or a portion of the proportionate share established for the farm under section 1359ff of this title, the Secretary may reserve for a period of not more than 3 consecutive years the production history of the farm to the extent of the proportionate share involved. The proportionate share may be redistributed to other farm owners or operators, but no production history shall accrue to the other farm owners or operators, by virtue of the redistribution of the proportionate share so redistributed."

Subsec. (c). Pub. L. 102–237, §111(i)(2), struck out "hearing and" before "notice" and inserted "required to be" after "proportionate share was".

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in section 1359jj of this title.

§1359hh. Regulations; violations; publication of Secretary's determinations; jurisdiction of courts; United States attorneys

(a) Regulations

The Secretary or the Commodity Credit Corporation, as appropriate, shall issue such regulations as may be necessary to carry out the authority vested in the Secretary in administering this subpart.

(b) Violation

Any person knowingly violating any regulation of the Secretary issued under subsection (a) of this section shall be subject to a civil penalty of not more than $5,000 for each violation.

(c) Publication in Federal Register

Each determination issued by the Secretary to establish, adjust, or suspend allotments under this subpart shall be promptly published in the Federal Register and shall be accompanied by a statement of the reasons for the determination.

(d) Jurisdiction of courts; United States attorneys

(1) Jurisdiction of courts

The several district courts of the United States are vested with jurisdiction specifically to enforce, and to prevent and restrain any person from violating, this subpart or any regulation issued thereunder.

(2) United States attorneys

Whenever the Secretary shall so request, it shall be the duty of the several United States attorneys, in their respective districts, to institute proceedings to enforce the remedies and to collect the penalties provided for in this subpart. The Secretary may elect not to refer to a United States attorney any violation of this subpart or regulation when the Secretary determines that the administration and enforcement of this subpart would be adequately served by written notice or warning to any person committing the violation.

(e) Nonexclusivity of remedies

The remedies and penalties provided for in this subpart shall be in addition to, and not exclusive of, any remedies or penalties existing at law or in equity.

(Feb. 16, 1938, ch. 30, title III, §359h, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3486; amended Pub. L. 102–237, title I, §111(j), Dec. 13, 1991, 105 Stat. 1836.)

Amendments

1991—Subsec. (a). Pub. L. 102–237 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows:

"(1) In general.—The Secretary shall issue such regulations as may be necessary to carry out the authority vested in the Secretary in administering the marketing allotment program under this subpart.

"(2) Prior consultations required.—In addition to taking such other action as may be required under section 551 through 559 of title 5 prior to proposing any regulations under paragraph (1), the Secretary shall consult with representatives of domestic sugar processors and producers with regard to ensuring that the regulations achieve the objectives of this subpart. The results of the consultations shall be published in the Federal Register, along with the proposed regulations."

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in sections 1359cc, 1359ff, 1359jj of this title.

§1359ii. Appeals

(a) In general

An appeal may be taken to the Secretary from any decision under section 1359dd of this title establishing allocations of marketing allotments, or under section 1359ff of this title, by any person adversely affected by reason of any such decision.

(b) Procedure

(1) Notice of appeal

Any such appeal shall be taken by filing with the Secretary, within 20 days after the decision complained of is effective, notice in writing of the appeal and a statement of the reasons therefor. Unless a later date is specified by the Secretary as part of the Secretary's decision, the decision complained of shall be considered to be effective as of the date on which announcement of the decision is made. The Secretary shall deliver a copy of any notice of appeal to each person shown by the records of the Secretary to be adversely affected by reason of the decision appealed, and shall at all times thereafter permit any such person to inspect and make copies of appellant's reasons for the appeal and shall on application permit the person to intervene in the appeal.

(2) Hearing

The Secretary shall provide each appellant an opportunity for a hearing before an administrative law judge in accordance with sections 554 and 556 of title 5. The expenses for conducting the hearing shall be reimbursed by the Commodity Credit Corporation.

(Feb. 16, 1938, ch. 30, title III, §359i, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3487; amended Pub. L. 102–237, title I, §111(k), Dec. 13, 1991, 105 Stat. 1836.)

Amendments

1991—Subsec. (b)(2). Pub. L. 102–237 amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The Secretary shall provide each appellant an opportunity for a hearing. The Secretary shall appoint an administrative law judge to conduct a hearing on the record on each appeal under this section. In all other respects, each appeal under this section shall be subject to sections 551 through 559, and 701 through 706, of title 5."

Inapplicability of Section

Section Referred to in Other Sections

This section is referred to in section 1359jj of this title.

§1359jj. Administration

(a) Use of certain agencies

In carrying out this subpart, the Secretary may use the services of local committees of sugar beet or sugarcane producers, sugarcane processors, or sugar beet processors, State and county committees established under section 590h(b) of title 16, and the departments and agencies of the United States Government.

(b) Use of Commodity Credit Corporation

The Secretary shall use the services, facilities, funds, and authorities of the Commodity Credit Corporation to carry out sections 1359aa through 1359ii of this title.

(c) "United States" and "State" defined

Notwithstanding section 1301 of this title, for purposes of this subpart, the terms "United States" and "State" means ¹ the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

(Feb. 16, 1938, ch. 30, title III, §359j, as added Pub. L. 101–624, title IX, §902, Nov. 28, 1990, 104 Stat. 3488.)

Inapplicability of Section

¹ So in original. Probably should be "mean".