Title 7AgricultureRelease 119-73

§511d Designation of markets; manner; inspection and related services; fees and charges

Title 7 › Chapter CHAPTER 21A— - TOBACCO INSPECTION › § 511d

Last updated Apr 6, 2026|Official source

Summary

The Secretary may name which auction markets must have official inspection and certification whenever tobacco sold there moves in interstate or other commerce. Before naming a market, the Secretary must hold a vote of the tobacco growers who sold at that market in the previous marketing season. The Secretary can combine markets into one vote. A market is only named if two-thirds of the growers who vote approve. The Secretary can use Internal Revenue tobacco records to find who can vote, and no grower may vote in more than one referendum. After at least 30 days’ public notice that a market is named, tobacco cannot be sold there at auction until an authorized inspector has checked and certified it under the set standards, unless inspectors are unavailable or the amount of tobacco is too small to justify inspection. The Secretary will set and collect fees for inspection, certification, standards, and related services. Fees should cover the costs and are charged to the warehouse operator, who must collect them from sellers. If the warehouse operator does not pay, inspection can be stopped. The Secretary will also create a permanent national advisory committee and subcommittees of tobacco producers to advise on service levels and fees.

Full Legal Text

Title 7, §511d

Agriculture — Source: USLM XML via OLRC

The Secretary is authorized to designate those auction markets where tobacco bought and sold thereon at auction, or the products customarily manufactured therefrom, moves in commerce. Before any market is designated by the Secretary under this section he shall determine by referendum the desire of tobacco growers who sold tobacco at auction on such market during the preceding marketing season. The Secretary may at his discretion hold one referendum for two or more markets or for all markets in a type area. No market or group of markets shall be designated by the Secretary unless two-thirds of the growers voting favor it. The Secretary shall have access to the tobacco records of the Collector of Internal Revenue and of the several collectors of internal revenue for the purpose of obtaining the names and addresses of growers who sold tobacco on any auction market, and the Secretary shall determine from said records the eligibility of such grower to vote in such referendum, and no grower shall be eligible to vote in more than one referendum. After public notice of not less than thirty days that any auction market has been so designated by the Secretary, no tobacco shall be offered for sale at auction on such market until it shall have been inspected and certified by an authorized representative of the Secretary according to the standards established under this chapter, except that the Secretary may temporarily suspend the requirement of inspection and certification at any designated market whenever he finds it impracticable to provide for such inspection and certification because competent inspectors are not obtainable or because the quantity of tobacco available for inspection is insufficient to justify the cost of such service: Provided, That, in the event competent inspectors are not available, or for other reasons, the Secretary is unable to provide for such inspection and certification at all auction markets within a type area, he shall first designate those auction markets where the greatest number of growers may be served with the facilities available to him. The Secretary shall by regulation fix and collect fees and charges for inspection and certification, the establishment of standards, and other services under this section at designated auction markets. The fees and charges authorized by this section shall, as nearly as practicable, cover the costs of the services, including the administrative and supervisory costs customarily included by the Secretary in user fee calculations. The fees and charges, late payment penalties, and interest earned from the investment of such funds, when collected, shall be credited to the current appropriation account that incurs the cost and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing services under this chapter. Any funds realized from the collection of fees or charges authorized under this section and section 511e of this title and credited to the current appropriation account incurring the cost of services provided under this section and section 511e of this title, late payment penalties, and interest earned from the investment of such funds may be invested by the Secretary in insured or fully collateralized, interest-bearing accounts or, at the discretion of the Secretary, by the Secretary of the Treasury in United States Government debt instruments. Any income realized from this activity may be used to pay the expenses of the Secretary of Agriculture incident to providing services under this chapter or reinvested in the manner authorized in the preceding sentence. The fees and charges authorized in this section shall be assessed against the warehouse operator, irrespective of ownership or interest in the tobacco, and shall be collected by the warehouse operator from the sellers of the tobacco. The inspection and related services under this section shall be suspended or denied if the warehouse operator fails to collect or otherwise pay the fees and charges imposed under this section. Tobacco inspection or certification services provided to designated auction markets shall take precedence over such services, other than reinspection, requested under the authority contained in section 511e of this title or any other provision of law. In accordance with chapter 10 of title 5, the Secretary shall establish a national advisory committee of tobacco producers, and advisory subcommittees for each major kind of tobacco, to advise the Secretary with regard to the level of inspection and related services and the fees and charges therefor. The advisory committee and subcommittees established under this section shall be of permanent duration. The committees shall meet at the call of the Secretary.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Pub. L. 117–286 substituted “chapter 10 of title 5,” for “the Federal Advisory Committee Act,”. 1986—Pub. L. 99–272 inserted “late payment penalties, and interest earned from the investment of such funds,” in ninth sentence, substituted “The fees and charges authorized in this section shall be assessed” for “Such fees and charges shall be assessed”, and inserted provision relating to the investment of any funds realized from collection of fees or charges in insured or fully collateralized, interest-bearing accounts or in United States Government debt instruments, the income therefrom to be used to pay expenses incident to providing services under this chapter or reinvested. 1981—Pub. L. 97–35 substituted provisions requiring the Secretary to fix and collect fees and charges for inspection, certification, establishment of standards, and other services at designated auction markets, for provisions prohibiting imposition or collection of fees or charges for inspection or certification at markets.

Statutory Notes and Related Subsidiaries

Effective Date

of 1981 Amendment Pub. L. 97–35, title I, § 157(b), Aug. 13, 1981, 95 Stat. 375, provided that: “The provisions of this section [amending this section and section 511e of this title] shall become effective October 1, 1981.”

Executive Documents

Abolition of Offices and

Transfer of Functions

Offices of Internal Revenue Collector and Deputy Collector abolished by 1952 Reorg. Plan No. 1, § 1, eff. Mar. 14, 1952, 17 F.R. 2243, 66 Stat. 823, set out in the Appendix to Title 5, Government Organization and Employees, and by section 2 thereof a new office of district commissioner of internal revenue established. section 4 of the Plan transferred all functions, that had been vested by statute in any officer or employee of Bureau of Internal Revenue since

Effective Date

of 1950 Reorg. Plan No. 26, §§ 1, 2, 15 F.R. 4935, 64 Stat. 1280, 1281, to Secretary of the Treasury.

Reference

Citations & Metadata

Citation

7 U.S.C. § 511d

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73