§511d Designation of Markets; Manner; Inspection and Related Services; Fees and Charges

Summary

The Secretary of Agriculture can pick which auction markets must follow federal tobacco inspection and certification rules. Before naming a market, the Secretary must hold a vote of the growers who sold there last season. The Secretary may combine votes for several markets. A market is designated only if two-thirds of the growers who vote agree. The Secretary can use Internal Revenue records to find growers’ names and addresses and to check who may vote. Each grower may vote in only one referendum. Once a market is designated and at least 30 days’ public notice is given, tobacco cannot be sold at auction there until a Secretary’s inspector checks and certifies it under the chapter’s standards. The Secretary may temporarily stop that rule if inspectors are not available or if there is too little tobacco to justify inspection. If inspectors can’t cover a whole type area, the Secretary will first serve the markets that reach the most growers. The Secretary will set fees for inspections and related services. Fees should cover the costs, and the money, penalties, and interest go to the account that paid the costs and can be invested safely. Fees are charged to the warehouse operator, who must collect them from sellers. If the operator won’t collect or pay, inspection will be stopped. Inspection at designated markets gets priority over other requested services. The Secretary will create a permanent national advisory committee of tobacco producers and subcommittees by tobacco type to advise on service levels and fees.