article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Tobacco Program Administrative Reform Act of 1998''. SEC. 2. ASSESSMENT UPON TOBACCO PRODUCT MANUFACTURERS AND IMPORTERS TO COVER DEPARTMENT OF AGRICULTURE COSTS ASSOCIATED WITH TOBACCO PROGRAMS. (a) Covered Department Costs.--Not later than September 30 of each fiscal year, the Secretary of Agriculture shall estimate the costs to be incurred by the Department of Agriculture during the next fiscal year-- (1) to administer the tobacco quota program under subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.); (2) to administer the tobacco price support program under sections 106, 106A, and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445, 1445-1, 1445-2); (3) to carrying out crop insurance programs for tobacco, including the costs to be incurred by the Federal Crop Insurance Corporation under section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) to pay the premium for catastrophic risk protection for tobacco crops and the Federal portion of the premium for various additional coverages available for tobacco crops; and (4) to extension services related to tobacco production and marketing. (b) Adjustment of Estimate.--If the estimate prepared for a fiscal year under subsection (a) proves to be insufficient to cover the actual costs described in such subsection that were incurred by the Department during that fiscal year, the Secretary shall adjust the estimate for the next fiscal year to recoup the additional costs incurred by Department and paid out of Department funds. (c) Market Share and Assessment Determinations.--As soon as possible after preparing the estimate for a fiscal year under subsection (a), the Secretary shall determine the market share of each tobacco product manufacturer and each tobacco product importer during the most recent calendar year and the amount of the assessment payable by the tobacco product manufacturer or tobacco product importer for that fiscal year. (d) Individual Amount of Assessments.--The amount of an assessment payable by each tobacco product manufacturer and tobacco product importer under this section for a fiscal year shall be equal to the product obtained by multiplying-- (1) the total amount of costs estimated by the Secretary under subsection (a), as adjusted under subsection (b), for that fiscal year; by (2) the market share of the tobacco product manufacturer or tobacco product importer during the most recent calendar year determined under subsection (d). (e) Collection, Deposit, and Availability of Assessments.-- (1) Collection.--At such time each fiscal year and in such manner as the Secretary may prescribe, each tobacco product manufacturer and tobacco product importer shall remit to the Secretary a nonrefundable assessment in the amount determined for that tobacco product manufacturer or tobacco product importer for that year under subsection (d). The Secretary may enforce the collection of assessments under this paragraph in the courts of the United States. (2) Tobacco assessment fund.--There is established in the Treasury of the United States a fund to be known as the ``Tobacco Assessment Fund'', which shall consist of all assessments collected under paragraph (1). (3) Authorized uses of fund.--Amounts in the Tobacco Assessment Fund shall be available to the Secretary, without further appropriation, to cover the Department costs described in subsection (a). (4) Refunds.--If the Secretary determines that amounts collected under paragraph (1) for a fiscal year and deposited in the Tobacco Assessment Fund exceed the amounts required to cover anticipated Department costs under subsection (a) for that fiscal year, plus a reasonable reserve, the Secretary shall refund the excess amounts to tobacco product manufacturers and tobacco product importers using the same proportion for each tobacco product manufacturer and tobacco product importer as used in the original assessment. (f) Effect on Crop Insurance Premiums; Existing Assessments.--(1) Amounts made available to the Secretary under this section may not be used to change the crop insurance premiums assessed to tobacco producers under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) relative to other crops. (2) Nothing in this section shall be construed to alter the assessments imposed and collected-- (A) for deficit reduction purposes under section 106(g) of the Agricultural Act of 1949 (7 U.S.C. 1445(g)); or (B) to finance operations of No Net Cost Tobacco Funds under section 106A of such Act (7 U.S.C. 1445-1) and No Net Cost Tobacco Accounts under section 106B of such Act (7 U.S.C. 1445-2). (g) Definitions.--For purposes of this section: (1) Tobacco product importer.--The term ``tobacco product importer'' has the meaning given the term ``importer'' in section 5702 of the Internal Revenue Code of 1986 (26 U.S.C. 5702). (2) Tobacco product manufacturer.--The term ``tobacco product manufacturer'' has the meaning given the term ``manufacturer of tobacco products'' in section 5702 of the Internal Revenue Code of 1986 (26 U.S.C. 5702); except that the term does not include a person that only manufactures cigars or pipe tobacco. (3) Market share.--The term ``market share'' means the ratio of-- (A) the tax liability of a tobacco product manufacturer or tobacco product importer for a calendar year under section 5703 of the Internal Revenue Code of 1986 (26 U.S.C. 5703); to (B) the tax liability of all tobacco product manufacturers and tobacco product importers for that calendar year under such section. (4) Secretary.--The term ``Secretary'' means the Secretary of Agriculture. (5) Department.--The term ``Department'' means the Department of Agriculture.
summary: Tobacco Program Administrative Reform Act of 1998 - Directs the Secretary of Agriculture to: (1) estimate the annual (fiscal year) Department of Agriculture tobacco program costs; and (2) assess tobacco importers and product manufacturers based upon cost and market share. Establishes in the Treasury the Tobacco Assessment Fund.