Collapse to view only § 7411. Findings and purpose

§ 7411. Findings and purpose
(a) Findings
Congress finds the following:
(1) The production of agricultural commodities plays a significant role in the economy of the United States. Thousands of producers in the United States are involved in the production of agricultural commodities, and such commodities are consumed by millions of people throughout the United States and foreign countries.
(2) Agricultural commodities must be of high quality, readily available, handled properly, and marketed efficiently to ensure that consumers have an adequate supply.
(3) The maintenance and expansion of existing markets and the development of new markets for agricultural commodities through generic commodity promotion, research, and information programs are vital to the welfare of persons engaged in the production, marketing, and consumption of such commodities, as well as to the general economy of the United States.
(4) Generic promotion, research, and information activities for agricultural commodities play a unique role in advancing the demand for such commodities, since such activities increase the total market for a product to the benefit of consumers and all producers. These generic activities complement branded advertising initiatives, which are aimed at increasing the market share of individual competitors, and are of particular benefit to small producers who lack the resources or market power to advertise on their own. These generic activities do not impede the branded advertising efforts of individual firms, but instead increase general market demand for an agricultural commodity using methods that individual companies do not have the incentive to employ.
(5) Generic promotion, research, and information activities for agricultural commodities, paid by the producers and others in the industry who reap the benefits of such activities, provide a unique opportunity for producers to inform consumers about a particular agricultural commodity.
(6) It is important to ensure that generic promotion, research, and information activities for agricultural commodities be carried out in an effective and coordinated manner designed to strengthen the position of the commodities in the marketplace and to maintain and expand their markets and uses. Independent evaluation of the effectiveness of the generic promotion activities of these programs will assist the Secretary of Agriculture and Congress in ensuring that these objectives are met.
(7) The cooperative development, financing, and implementation of a coordinated national program of research, promotion, and information regarding agricultural commodities are necessary to maintain and expand existing markets and to develop new markets for these commodities.
(8) Agricultural commodities move in interstate and foreign commerce, and agricultural commodities and their products that do not move in such channels of commerce directly burden or affect interstate commerce in agricultural commodities and their products.
(9) Commodity promotion programs have the ability to provide significant conservation benefits to producers and the public.
(b) Purpose
The purpose of this subchapter is to authorize the establishment, through the exercise by the Secretary of Agriculture of the authority provided in this subchapter, of an orderly program for developing, financing, and carrying out an effective, continuous, and coordinated program of generic promotion, research, and information regarding agricultural commodities designed to—
(1) strengthen the position of agricultural commodity industries in the marketplace;
(2) maintain and expand existing domestic and foreign markets and uses for agricultural commodities;
(3) develop new markets and uses for agricultural commodities; or
(4) assist producers in meeting their conservation objectives.
(c) Rule of construction
(Pub. L. 104–127, title V, § 512, Apr. 4, 1996, 110 Stat. 1032.)
§ 7412. DefinitionsIn this subchapter (unless the context otherwise requires):
(1) Agricultural commodityThe term “agricultural commodity” means—
(A) agricultural, horticultural, viticultural, and dairy products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee raising;
(D) the products of forestry;
(E) products, as a class, that are—
(i) produced on a certified organic farm (as defined in section 6502 of this title); and
(ii) certified to be sold or labeled as “organic” or “100 percent organic” (as defined in part 205 of title 7, Code of Federal Regulations (or a successor regulation));
(F) other commodities raised or produced on farms, as determined appropriate by the Secretary; and
(G) products processed or manufactured from products specified in the preceding subparagraphs, as determined appropriate by the Secretary.
(2) Board
(3) Conflict of interest
(4) Department
(5) First handler
(6) Importer
(7) InformationThe term “information” means information and programs that are designed to increase—
(A) efficiency in processing; and
(B) the development of new markets, marketing strategies, increased marketing efficiency, and activities to enhance the image of agricultural commodities on a national or international basis.
(8) Market
(9) OrderThe term “order” means an order issued by the Secretary under section 7413 of this title that provides for a program of generic promotion, research, and information regarding agricultural commodities designed to—
(A) strengthen the position of agricultural commodity industries in the marketplace;
(B) maintain and expand existing domestic and foreign markets and uses for agricultural commodities;
(C) develop new markets and uses for agricultural commodities; or
(D) assist producers in meeting their conservation objectives.
(10) Person
(11) Producer
(12) Promotion
(13) Research
(14) Secretary
(15) State
(16) Suspend
(17) Terminate
(18) United States
(Pub. L. 104–127, title V, § 513, Apr. 4, 1996, 110 Stat. 1033; Pub. L. 113–79, title X, § 10004(f), Feb. 7, 2014, 128 Stat. 944.)
§ 7413. Issuance of orders
(a) Issuance authorized
(1) In generalTo effectuate the purpose of this subchapter, the Secretary may issue, and amend from time to time, orders applicable to—
(A) the producers of an agricultural commodity;
(B) the first handlers of the agricultural commodity and other persons in the marketing chain as appropriate; and
(C) the importers of the agricultural commodity, if imports of the agricultural commodity are subject to assessment under section 7415(f) of this title.
(2) National scope
(b) Procedure for issuance
(1) Development or receipt of proposed orderA proposed order with respect to an agricultural commodity may be—
(A) prepared by the Secretary at any time; or
(B) submitted to the Secretary by—
(i) an association of producers of the agricultural commodity; or
(ii) any other person that may be affected by the issuance of an order with respect to the agricultural commodity.
(2) Consideration of proposed order
(3) Existence of other orders
(4) Preparation of final order
(c) Issuance and effective date
(d) Amendments
(Pub. L. 104–127, title V, § 514, Apr. 4, 1996, 110 Stat. 1035.)
§ 7414. Required terms in orders
(a) In general
(b) Board
(1) Establishment
(2) Board membership
(A) Number of members
(B) Appointment
(C) Nominations
(D) Geographical representation
(3) Reapportionment of board membership
In accordance with rules issued by the Secretary, at least once in each 5-year period, but not more frequently than once in each 3-year period, each board shall—
(A) review the geographical distribution in the United States of the production of the agricultural commodity covered by the order involved and the quantity or value of the agricultural commodity imported into the United States; and
(B) if warranted, recommend to the Secretary the reapportionment of the board membership to reflect changes in the geographical distribution of the production of the agricultural commodity and the quantity or value of the imported agricultural commodity.
(4) Notice
(A) Vacancies
(B) Meetings
(5) Term of office
(A) In general
(B) Limitation on consecutive terms
(C) Continuation of term
(D) Vacancies
(6) Compensation
(A) In general
(B) Travel expenses
(c) Powers and duties of board
Each order shall specify the powers and duties of the board established under the order, which shall include the power and duty—
(1) to administer the order in accordance with its terms and conditions and to collect assessments;
(2) to develop and recommend to the Secretary for approval such bylaws as may be necessary for the functioning of the board and such rules as may be necessary to administer the order, including activities authorized to be carried out under the order;
(3) to meet, organize, and select from among the members of the board a chairperson, other officers, and committees and subcommittees, as the board determines to be appropriate;
(4) to employ persons, other than the members, as the board considers necessary to assist the board in carrying out its duties, and to determine the compensation and specify the duties of the persons;
(5) subject to subsection (e), to develop and carry out generic promotion, research, and information activities relating to the agricultural commodity covered by the order;
(6) to prepare and submit for the approval of the Secretary, before the beginning of each fiscal year, rates of assessment under section 7416 of this title and an annual budget of the anticipated expenses to be incurred in the administration of the order, including the probable cost of each promotion, research, and information activity proposed to be developed or carried out by the board;
(7) to borrow funds necessary for the startup expenses of the order;
(8) subject to subsection (f), to enter into contracts or agreements to develop and carry out generic promotion, research, and information activities relating to the agricultural commodity covered by the order;
(9) to pay the cost of the activities with assessments collected under section 7416 of this title, earnings from invested assessments, and other funds;
(10) to keep records that accurately reflect the actions and transactions of the board, to keep and report minutes of each meeting of the board to the Secretary, and to furnish the Secretary with any information or records the Secretary requests;
(11) to receive, investigate, and report to the Secretary complaints of violations of the order; and
(12) to recommend to the Secretary such amendments to the order as the board considers appropriate.
(d) Prohibited activities
A board may not engage in, and shall prohibit the employees and agents of the board from engaging in—
(1) any action that would be a conflict of interest;
(2) using funds collected by the board under the order, any action undertaken for the purpose of influencing any legislation or governmental action or policy other than recommending to the Secretary amendments to the order; and
(3) any advertising, including promotion, research, and information activities authorized to be carried out under the order, that may be false or misleading or disparaging to another agricultural commodity.
(e) Activities and budgets
(1) Activities
(2) Budgets
(A) Submission to Secretary
(B) Reimbursement of Secretary
(3) Incurring expenses
(4) Payment of expenses
(5) Limitation on spending
(f) Contracts and agreements
(1) In general
Each order shall provide that, with the approval of the Secretary, the board established under the order may—
(A) enter into contracts and agreements to carry out generic promotion, research, and information activities relating to the agricultural commodity covered by the order, including contracts and agreements with producer associations or other entities as considered appropriate by the Secretary; and
(B) pay the cost of approved generic promotion, research, and information activities using assessments collected under section 7416 of this title, earnings obtained from assessments, and other income of the board.
(2) Requirements
Each contract or agreement shall provide that any person who enters into the contract or agreement with the board shall—
(A) develop and submit to the board a proposed activity together with a budget that specifies the cost to be incurred to carry out the activity;
(B) keep accurate records of all of its transactions relating to the contract or agreement;
(C) account for funds received and expended in connection with the contract or agreement;
(D) make periodic reports to the board of activities conducted under the contract or agreement; and
(E) make such other reports as the board or the Secretary considers relevant.
(g) Records of board
(1) In general
Each order shall require the board established under the order—
(A) to maintain such records as the Secretary may require and to make the records available to the Secretary for inspection and audit;
(B) to collect and submit to the Secretary, at any time the Secretary may specify, any information the Secretary may request; and
(C) to account for the receipt and disbursement of all funds in the possession, or under the control, of the board.
(2) Audits
Each order shall require the board established under the order to have—
(A) its records audited by an independent auditor at the end of each fiscal year; and
(B) a report of the audit submitted directly to the Secretary.
(h) Periodic evaluation
(i) Books and records of persons covered by order
(1) In general
Each order shall require that producers, first handlers and other persons in the marketing chain as appropriate, and importers covered by the order shall—
(A) maintain records sufficient to ensure compliance with the order and regulations;
(B) submit to the board established under the order any information required by the board to carry out its responsibilities under the order; and
(C) make the records described in subparagraph (A) available, during normal business hours, for inspection by employees or agents of the board or the Department, including any records necessary to verify information required under subparagraph (B).
(2) Time requirement
(3) Other information
(4) Confidentiality of information
(A) In general
(B) Disclosure
Information referred to in subparagraph (A) may be disclosed only if—
(i) the Secretary considers the information relevant; and
(ii) the information is revealed in a judicial proceeding or administrative hearing brought at the direction or on the request of the Secretary or to which the Secretary or any officer of the Department is a party.
(C) Other exceptions
This paragraph shall not prohibit—
(i) the issuance of general statements based on reports or on information relating to a number of persons subject to an order if the statements do not identify the information furnished by any person; or
(ii) the publication, by direction of the Secretary, of the name of any person violating any order and a statement of the particular provisions of the order violated by the person.
(D) Penalty
(5) Withholding information
(Pub. L. 104–127, title V, § 515, Apr. 4, 1996, 110 Stat. 1036.)
§ 7415. Permissive terms in orders
(a) Exemptions
An order issued under this subchapter may contain—
(1) authority for the Secretary to exempt from the order any de minimis quantity of an agricultural commodity otherwise covered by the order; and
(2) authority for the board established under the order to require satisfactory safeguards against improper use of the exemption.
(b) Different payment and reporting schedules
(c) Activities
(d) Reserve funds
(e) Credits
(1) Generic activities
(2) Branded activities
(A) In general
(B) Election by cooperative
(f) Assessment of imports
(g) Other authority
An order issued under this subchapter may contain authority to take any other action that—
(1) is not inconsistent with the purpose of this subchapter, any term or condition specified in section 7414 of this title, or any rule issued to carry out this subchapter; and
(2) is necessary to administer the order.
(Pub. L. 104–127, title V, § 516, Apr. 4, 1996, 110 Stat. 1041.)
§ 7416. Assessments
(a) Assessments authorized
While an order issued under this subchapter is in effect with respect to an agricultural commodity, assessments shall be—
(1) paid by first handlers with respect to the agricultural commodity produced and marketed in the United States; and
(2) paid by importers with respect to the agricultural commodity imported into the United States, if the imported agricultural commodity is covered by the order pursuant to section 7415(f) of this title.
(b) Collection
(c) Limitation on assessments
(d) Assessment rates
(e) Late-payment and interest charges
(1) In general
(2) Rate
(f) Investment of assessments
Pending disbursement of assessments under a budget approved by the Secretary, a board may invest assessments collected under this section in—
(1) obligations of the United States or any agency of the United States;
(2) general obligations of any State or any political subdivision of a State;
(3) interest-bearing accounts or certificates of deposit of financial institutions that are members of the Federal Reserve System; or
(4) obligations fully guaranteed as to principal and interest by the United States.
(g) Refund of assessments from escrow account
(1) Escrow account
During the period beginning on the effective date of an order and ending on the date the Secretary announces the results of a referendum that is conducted under section 7417(b)(1) of this title with respect to the order, the board established under the order shall—
(A) establish and maintain an escrow account of the kind described in subsection (f)(3) to be used to refund assessments; and
(B) deposit funds in the account in accordance with paragraph (2).
(2) Amount to be deposited
(3) Right to receive refund
Subject to paragraphs (4), (5), and (6), persons subject to an order shall be eligible to demand a refund of assessments collected during the period referred to in paragraph (1) if—
(A) the assessments were remitted on behalf of the person; and
(B) the order is not approved in the referendum.
(4) Form of demand
(5) Payment of refund
(6) Proration
(7) Closing of escrow account
If the order is approved in a referendum conducted under section 7417(b)(1) of this title
(A) the escrow account shall be closed; and
(B) the funds shall be available to the board for disbursement as authorized in the order.
(Pub. L. 104–127, title V, § 517, Apr. 4, 1996, 110 Stat. 1042.)
§ 7416a. Confirmation of authority of Secretary of Agriculture to collect State commodity assessments
(a) Collection from marketing assistance loans
(b) Collection pursuant to agreement
(c) Prohibition on charging certain fees
(Pub. L. 108–470, § 1, Dec. 21, 2004, 118 Stat. 3894; Pub. L. 110–234, title I, § 1616, May 22, 2008, 122 Stat. 1021; Pub. L. 110–246, § 4(a), title I, § 1616, June 18, 2008, 122 Stat. 1664, 1749.)
§ 7417. Referenda
(a) Initial referendum
(1) Optional referendum
For the purpose of ascertaining whether the persons to be covered by an order favor the order going into effect, the order may provide for the Secretary to conduct an initial referendum among persons to be subject to an assessment under section 7416 of this title who, during a representative period determined by the Secretary, engaged in—
(A) the production or handling of the agricultural commodity covered by the order; or
(B) the importation of the agricultural commodity.
(2) Procedure
(b) Required referenda
(1) In general
For the purpose of ascertaining whether the persons covered by an order favor the continuation, suspension, or termination of the order, the Secretary shall conduct a referendum among persons subject to assessments under section 7416 of this title who, during a representative period determined by the Secretary, have engaged in—
(A) the production or handling of the agricultural commodity covered by the order; or
(B) the importation of the agricultural commodity.
(2) Time for referendum
(3) Exception
(c) Subsequent referenda
The Secretary shall conduct a subsequent referendum—
(1) not later than 7 years after assessments first begin under the order;
(2) at the request of the board established under the order; or
(3) at the request of 10 percent or more of the number of persons eligible to vote under subsection (b)(1);
to determine if the persons favor the continuation, suspension, or termination of the order.
(d) Other referenda
(e) Approval of order
An order may provide for its approval in a referendum—
(1) by a majority of those persons voting;
(2) by persons voting for approval who represent a majority of the volume of the agricultural commodity; or
(3) by a majority of those persons voting for approval who also represent a majority of the volume of the agricultural commodity.
(f) Costs of referenda
(g) Manner of conducting referenda
(1) In general
(2) Advance registration
(3) Voting
(4) Notice
(Pub. L. 104–127, title V, § 518, Apr. 4, 1996, 110 Stat. 1043.)
§ 7418. Petition and review of orders
(a) Petition
(1) In general
A person subject to an order issued under this subchapter may file with the Secretary a petition—
(A) stating that the order, any provision of the order, or any obligation imposed in connection with the order, is not established in accordance with law; and
(B) requesting a modification of the order or an exemption from the order.
(2) Hearing
(3) Ruling
(4) Limitation on petition
(b) Review
(1) Commencement of action
(2) Process
(3) Remands
If the court determines that the ruling is not in accordance with law, the court shall remand the matter to the Secretary with directions—
(A) to make such ruling as the court determines to be in accordance with law; or
(B) to take such further action as, in the opinion of the court, the law requires.
(c) Effect on enforcement proceedings
(Pub. L. 104–127, title V, § 519, Apr. 4, 1996, 110 Stat. 1044.)
§ 7419. Enforcement
(a) Jurisdiction
(b) Referral to Attorney General
(c) Civil penalties and orders
(1) Civil penalties
(2) Separate offense
(3) Cease-and-desist orders
(4) Notice and hearing
(5) Finality
(d) Review by court of appeals
(1) In generalA person against whom an order is issued under subsection (c) may obtain review of the order by—
(A) filing, not later than 30 days after the person receives notice of the order, a notice of appeal in—
(i) the United States court of appeals for the circuit in which the person resides or carries on business; or
(ii) the United States Court of Appeals for the District of Columbia Circuit; and
(B) simultaneously sending a copy of the notice of appeal by certified mail to the Secretary.
(2) Record
(3) Standard of review
(e) Failure to obey cease-and-desist orders
(f) Failure to pay penalties
(g) Additional remedies
(Pub. L. 104–127, title V, § 520, Apr. 4, 1996, 110 Stat. 1045.)
§ 7420. Investigations and power to subpoena
(a) Investigations
The Secretary may make such investigations as the Secretary considers necessary—
(1) for the effective administration of this subchapter; or
(2) to determine whether any person subject to this subchapter has engaged, or is about to engage, in any action that constitutes or will constitute a violation of this subchapter or any order or regulation issued under this subchapter.
(b) Subpoenas, oaths, and affirmations
(c) Aid of courts
(d) Contempt
(e) Process
(Pub. L. 104–127, title V, § 521, Apr. 4, 1996, 110 Stat. 1047.)
§ 7421. Suspension or termination
(a) Mandatory suspension or termination
(b) Implementation of suspension or termination
If, as a result of a referendum conducted under section 7417 of this title, the Secretary determines that an order is not approved, the Secretary shall—
(1) not later than 180 days after making the determination, suspend or terminate, as the case may be, collection of assessments under the order; and
(2) as soon as practicable, suspend or terminate, as the case may be, activities under the order in an orderly manner.
(Pub. L. 104–127, title V, § 522, Apr. 4, 1996, 110 Stat. 1047.)
§ 7422. Amendments to orders

The provisions of this subchapter applicable to an order shall be applicable to any amendment to an order, except that section 7417 of this title shall not apply to an amendment.

(Pub. L. 104–127, title V, § 523, Apr. 4, 1996, 110 Stat. 1047.)
§ 7423. Effect on other laws

This subchapter shall not affect or preempt any other Federal or State law authorizing promotion or research relating to an agricultural commodity.

(Pub. L. 104–127, title V, § 524, Apr. 4, 1996, 110 Stat. 1047.)
§ 7424. Regulations

The Secretary may issue such regulations as may be necessary to carry out this subchapter and the power vested in the Secretary under this subchapter.

(Pub. L. 104–127, title V, § 525, Apr. 4, 1996, 110 Stat. 1048.)
§ 7425. Authorization of appropriations
(a) In general
(b) Limitation on expenditures for administrative expenses
(Pub. L. 104–127, title V, § 526, Apr. 4, 1996, 110 Stat. 1048.)