Tobacco Program Improvement Act of 1985

Tobacco Program Improvement Act of 1985 - Amends the Agricultural Act of 1949 to set the 1985 support price for Burley tobacco at $1.449 per pound.

Sets the price support level for any kind of tobacco (other than Flue-cured and Burley) for which marketing quotas are in effect or not disapproved by producers at the preceding year's price, plus or minus the amount by which the current crop's price is greater or less than the preceding year's price, as such difference may be adjusted by the Secretary of Agriculture. Authorizes the Secretary to reduce the support level if requested by a producer association.

Sets the price support level for the 1986 and subsequent crops of Flue-cured and Burley tobacco at the preceding year's level, plus or minus an adjustment of 65 percent to 100 percent of the total of: (1) two-thirds of the amount by which 95 percent of the previous five years' average marketing price is greater or less than the preceding year's support price; and (2) one-third of the change in the index of prices paid by tobacco farmers during the previous calendar year.

Repeals the provision authorizing the Secretary to reduce price supports for certain low quality grades of Flue-cured tobacco.

Amends the Agricultural Adjustment Act of 1938 to establish reserve tobacco stock levels for: (1) Flue-cured at the greater of 100,000,000 pounds or 15 percent of such tobacco's national marketing quota; and (2) Burley at the greater of 50,000,000 pounds or 15 percent of such tobacco's national marketing quota.

Requires the Secretary to set the national marketing quota for Flue-cured and Burley at between 103 percent and 97 percent of the total of: (1) the aggregate of projected cigarette purchases; (2) the previous three years' average annual exports; and (3) the amount of tobacco the Secretary determines necessary to increase or decrease producer association inventories to maintain such inventories at reserve stock levels.

Limits downward adjustments in the national Burley marketing quota to the greater of: (1) 35,000,000 pounds; or (2) 50 percent of the amount by which total Burley inventories of a producer association exceed reserve stock levels.

Requires cigarette manufacturers to submit to the Secretary an annual confidential projection of the amount of Flue-cured and Burley tobacco they intend to buy at auction or from producers during the succeeding marketing year. Directs the Secretary to establish the projection if a manufacturer fails to provide such information. Subjects Department of Agriculture officers or employees to loss of office and fines or imprisonment for violations of such confidentiality provisions.

Reduces the amount of Flue-cured and Burley tobacco that may be marketed without penalty from 110 percent to 103 percent of the farm marketing quota.

Establishes the annual marketing quota announcement date for: (1) Burley tobacco as February 1; and (2) other tobacco as March 1.

Requires cigarette manufacturers to submit to the Secretary on a confidential basis at the end of each marketing year the amount of Flue-cured and Burley tobacco purchases during such year.

Subjects manufacturers to a penalty (twice the per pound assessment times the amount by which purchases are less than 90 percent of projected purchases) for failure to purchase at least 90 percent of their Burley and Flue-cured projected purchases. Exempts individual manufacturers from such penalty if aggregate manufacturer purchases equal at least 90 percent of overall projected purchases. Requires penalties to be transmitted to the appropriate associations for deposit in the No Net Cost Fund or Account.

Requires Flue-cured and Burley tobacco purchasers to pay to the appropriate associations assessments on all purchases of such tobacco marketed by a producer from a farm. States that such assessments shall be determined so that producers and purchasers share equally in maintaining association Funds.

Requires assessments to be collected from: (1) the person acquiring the tobacco; (2) the warehouseman or agent if the tobacco is marketed through such person; or (3) the producer on sales (by the producer) to a person outside the United States. Subjects persons who fail to collect and remit such assessment to a penalty. Provides for: (1) notice and hearing opportunity; and (2) U.S. district court review.

Provides that for the 1986 and subsequent Burley crops assessments shall be determined without regard to any losses the Commodity Credit Corporation (CCC) may sustain with respect to the 1983 Burley Crop.

Provides with regard to inventory purchases that: (1) 1976 through 1984 Flue-cured stocks shall be offered for sale at the base prices (including carrying charges) in effect on the offer date, reduced by 90 percent for 1976 through 1981 tobacco, and ten percent for 1982 through 1984 tobacco; and (2) 1982 Burley stocks shall be offered for sale at the July 1, 1985 price, and 1984 stocks shall be offered for sale at the associations' costs as of the date of enactment of this Act.

Directs the CCC, with regard to the 1983 Burley crop, to: (1) take title to such crop held by the associations by calling in the loans on such tobacco; (2) offer such crop for sale as the CCC deems appropriate; and (3) offer any stocks remaining two years after such loan call-in at the associations' costs on the loan call date, reduced by 90 percent.

Authorizes cigarette manufacturers to purchase tobacco inventories over an eight-year period for Flue-cured tobacco and a five-year period for Burley tobacco. Requires the Secretary to approve purchase agreements.

Directs the Secretary to conduct studies of: (1) the tobacco grading system; and (2) the feasibility of establishing grades to designate disaster-affected crops, including price support adjustment authority. Directs the Secretary to establish a related advisory committee. Requires a report to the appropriate congressional committees.

Amends the Tobacco Inspection Act to authorize the Secretary to invest tobacco inspection fees to cover the cost of related services.