12 2 STA T . 1 7 1 3PUBLIC LA W 11 0– 2 46—J U NE 1 8, 2008 theS e cr et a r ys ha l l tra n s f er that po rt i ona g ree du pon b y the buyer and seller .‘ ‘ ( ii )AP P LICAT I ON O F ALLOCATION. —T he assign -m ent of the allocation under clause (i) shall apply— ‘‘( I ) during the remainder of the crop year for w hich the sale described in clause (i) occurs
and ‘‘(II) during each subse q uent crop year. ‘‘(iii) USE OF OT H E R FACTORIES TO FILL ALLOCA- TION.—If the assignment of the allocation under clause (i) to the buyer for the 1 or more purchased factories cannot be filled by the production of the 1 or more purchased factories , the remainder of the allocation may be filled by beet sugar produced by the buyer from other factories of the buyer. ‘‘( H ) N E W ENTRANTS STARTIN G PRO DU CTION, REOPENING, OR AC Q UIRING AN E X ISTING FACTOR Y WITH PRODUCTION HISTORY.— ‘‘(i) D EFINITION OF NEW ENTRANT.— ‘‘(I) IN GENERAL.—In this subparagraph, the term ‘new entrant ’ means an indi v idual, corpora- tion, or other entity that— ‘‘(aa) does not have an allocation of the beet sugar allotment under this part; ‘‘(bb) is not affiliated with any other indi- vidual, corporation, or entity that has an allocation of beet sugar under this part (referred to in this clause as a ‘third party’); and ‘‘(cc) will process sugar beets produced by sugar beet growers under contract with the new entrant for the production of sugar at the new or re-opened factory that is the basis for the new entrant allocation. ‘‘(II) AFFILIATION.— F or purposes of subclause (I)(bb), a new entrant and a third party shall be considered to be affiliated if— ‘‘(aa) the third party has an ownership interest in the new entrant; ‘‘(bb) the new entrant and the third party have owners in common; ‘‘(cc) the third party has the ability to e x ercise control over the new entrant by organi z ational rights, contractual rights, or any other means; ‘‘(dd) the third party has a contractual relationship with the new entrant by which the new entrant will ma k e use of the facilities or assets of the third party; or ‘‘(ee) there are any other similar cir- cumstances by which the Secretary determines that the new entrant and the third party are affiliated. ‘‘(ii) ALLOCATION FOR A NEW ENTRANT THAT HAS CONSTRUCTED A NEW FACTORY OR REOPENED A FACTORY THAT WAS NOT OPERATED SINCE B EFORE 19 9 8 .—If a new entrant constructs a new sugar beet processing factory,
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