§ 515h. — Effect of compacts between States producing cigar tobacco on Puerto Rican commerce.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC515h]
TITLE 7--AGRICULTURE
CHAPTER 21B--TOBACCO CONTROL
Sec. 515h. Effect of compacts between States producing cigar
tobacco on Puerto Rican commerce
If, pursuant to this chapter, any compact entered into among three
or more of the States of Pennsylvania, Ohio, Wisconsin, Massachusetts,
Florida, and Connecticut, becomes effective, or if any association or
associations are formed, the membership of which includes at least two-
thirds of the producers of cigar-filler tobacco and cigar-binder tobacco
in three or more of said States, commerce in cigar-filler tobacco
produced in Puerto Rico shall be regulated during the period in which
any such compact remains effective or such associations continue to
operate, as follows:
(a) Determination of world consumption; ``crop year'' defined
The Secretary shall determine for each crop year, by calculations
from available statistics of the United States Department of
Agriculture, the quantity of cigar-filler tobacco produced in the
continental United States and Puerto Rico which is likely to be consumed
in all countries of the world during such crop year, increased or
decreased, as the case may be, by the amount by which the world stocks
of cigar-filler tobacco (produced in the continental United States and
Puerto Rico) at the beginning of such crop year are less than or greater
than the normal stocks of such cigar-filler tobacco, as determined by
the Secretary. For the purposes of this section, the Secretary shall
specify as a ``crop year'' such period of twelve months as he deems will
facilitate the administration of this section.
(b) Determination of marketing quota for Puerto Rico
The Secretary shall determine a marketing quota for Puerto Rico for
cigar-filler tobacco for each crop year in which the provisions of this
section are operative. Such quota shall be that quantity of cigar-filler
tobacco which bears the same proportion (subject to such adjustment,
which may be cumulative from one crop year to another, not exceeding 5
per centum of said proportion in any one year, as the Secretary
determines is necessary to correct for any abnormal conditions of
production during any three normal crop years during the last ten years
for trends in production during such crop years and for trends in
consumption since such crop years) to the total quantity of cigar-filler
tobacco produced in the continental United States and Puerto Rico and
required for world consumption (as determined pursuant to subsection (a)
of this section) as the average production of cigar-filler tobacco in
Puerto Rico in such crop years bore to the average of the total
production of cigar-filler tobacco in the continental United States and
Puerto Rico in such crop years.
(c) Establishment of marketing quota for each Puerto Rican farm
The Secretary shall establish for each farm in Puerto Rico for each
crop year a tobacco-marketing quota, giving due consideration to the
quantity of cigar-filler tobacco marketed from the crops produced on
such farm and by the operator thereof in past years; to the land, labor,
and equipment available for production of tobacco on such farm; to the
crop-rotation practices on such farm; and to the soil and other physical
factors affecting production of tobacco on such farm: Provided, That the
total of the marketing quotas established for all farms in Puerto Rico
for any crop year shall not exceed the marketing quota for Puerto Rico
for such crop year.
(d) Uniform adjustment of marketing quotas
The marketing quota established for Puerto Rico and the marketing
quotas established for farms in Puerto Rico for any crop year pursuant
to subsections (b) and (c) of this section shall be subject to such
uniform adjustment during the crop year, not exceeding 10 per centum of
said quotas, as the Secretary shall determine to be necessary to
establish and maintain normal world stocks of cigar-filler tobacco
produced in the continental United States and Puerto Rico and otherwise
to effectuate the purposes of this chapter.
(e) Issuance of marketing certificates
The Secretary shall, under such terms and conditions and in
accordance with such methods as may be established in regulations
prescribed by him, issue, to buyers or handlers of tobacco from any farm
in Puerto Rico, marketing certificates for an amount of tobacco equal to
the marketing quota established for such farm, and, for any tobacco
marketed in excess of such quota for such farm, sell, to the buyer or
handlers of such excess tobacco, marketing certificates for a charge
equal to one-third of the current market value of such tobacco, and the
Secretary may require the buyer or handler of such excess tobacco to
deduct the charge for marketing certificates from the price or proceeds
of or advances on such tobacco.
(f) Payments for production deficits due to adverse conditions
From the proceeds received from the sale of marketing certificates
pursuant to subsection (e) of this section, the Secretary shall make
payments to the producers of tobacco on farms in Puerto Rico from which
the sales of tobacco, because of weather or diseases or loss by fire
affecting the tobacco crops thereon adversely during any crop year, are
less than the marketing quotas for such farms for such crop year. Such
payments shall be at a rate per pound of such deficit as shall be
determined by dividing the funds remaining after deduction of such
amount as the Secretary estimates to be necessary for the payment of
administrative expenses incurred in administering the provisions of this
section by the total number of pounds by which the sales of tobacco from
all such farms fall below the marketing quotas for such farms.
(g) Prohibition of sale, etc., without certificate
The sale, marketing, purchase, or transportation of any cigar-filler
tobacco produced, sold, or marketed in Puerto Rico during any period of
time when this section shall be in effect is prohibited unless a
marketing certificate has been issued for such tobacco by the Secretary
pursuant to the provisions of subsection (e) of this section.
(Apr. 25, 1936, ch. 249, Sec. 9, 49 Stat. 1241.)
Section Referred to in Other Sections
This section is referred to in section 515i of this title.
