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

Summary

The Secretary may pick which auction markets must have official tobacco inspection and certification before tobacco sold there can move in commerce. Before naming a market, the Secretary must hold a vote of the growers who sold tobacco at that market last season. The Secretary can combine votes for several markets or a whole area. A market is only picked if two-thirds of voting growers agree. The Secretary can use Internal Revenue records to find growers’ names and addresses and decide who can vote. A grower may vote in only one referendum. After at least 30 days’ public notice that a market is designated, no tobacco may be sold at auction there until it is inspected and certified, except when the Secretary temporarily suspends the rule because inspectors are not available or there is too little tobacco to justify the cost. If inspections can’t be provided everywhere, the Secretary will first cover the markets that serve the most growers. The Secretary will set and collect fees for inspection, certification, standards, and related services. Fees should, as much as possible, cover the costs including administrative and supervisory costs. Collected fees, late penalties, and interest go to the account that pays the costs and can be used without yearly limits to pay those expenses. The Secretary may invest the funds in insured interest accounts or U.S. government debt and use any income to pay or reinvest for these services. Fees are charged to the warehouse operator, who must collect them from sellers; services stop if the operator fails to collect or pay. Inspection for designated markets takes priority over other requested services except reinspections. The Secretary must create a permanent national advisory committee of tobacco producers and subcommittees for each major tobacco kind to advise on service levels and fees; they meet when the Secretary calls and follow federal advisory rules.