text: 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.
target: 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.
feat_title: Tobacco Program Administrative Reform Act of 1998