7 U.S.C. § 2906 — Requirement of referendum

Page 1546 TITLE 7—AGRICULTURE § 2905 (12) The order shall contain terms and condi- tions, not inconsistent with the provisions of this chapter, as necessary to effectuate the provisions of the order. (Pub. L. 94–294, § 5, May 28, 1976, 90 Stat. 530; Pub. L. 99–198, title XVI, § 1601(b), Dec. 23, 1985, 99 Stat. 1599.) Editorial Notes AMENDMENTS 1985—Pub. L. 99–198 amended section generally, sub- stituting provisions relating to required terms in or- ders for provisions relating to notice and hearing upon proposed orders. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–198 effective Jan. 1, 1986, see section 1601(c) of Pub. L. 99–198, set out as a note under section 2901 of this title. § 2905. Certification of organizations to nominate (a) Eligibility of State organization certified by Secretary; eligibility criteria The eligibility of any State organization to represent producers and to participate in the making of nominations under section 2904(1) of this title shall be certified by the Secretary. The Secretary shall certify any State organization that the Secretary determines meets the eligi- bility criteria established under subsection (b) and such determination as to eligibility shall be final. (b) State cattle association or State general farm organization A State cattle association or State general farm organization may be certified as described in subsection (a) if such association or organiza- tion meets all of the following eligibility cri- teria: (1) The association or organization’s total paid membership is comprised of at least a majority of cattle producers or the association or organization’s total paid membership rep- resents at least a majority of the cattle pro- ducers in the State. (2) The association or organization rep- resents a substantial number of producers that produce a substantial number of cattle in the State. (3) The association or organization has a his- tory of stability and permanency. (4) A primary or overriding purpose of the association or organization is to promote the economic welfare of cattle producers. (c) Factual report basis for certification of State cattle association and State general farm as- sociation Certification of State cattle associations and State general farm organizations shall be based on a factual report submitted by the association or organization involved. (d) Certification of more than one State organi- zation; caucus If more than one State organization is cer- tified in a State (or in a unit referred to in sec- tion 2904(1) of this title), such organizations may caucus to determine any of such State’s (or such unit’s) nominations under section 2904(1) of this title. (Pub. L. 94–294, § 6, May 28, 1976, 90 Stat. 531; Pub. L. 99–198, title XVI, § 1601(b), Dec. 23, 1985, 99 Stat. 1603.) Editorial Notes AMENDMENTS 1985—Pub. L. 99–198 amended section generally, sub- stituting provisions relating to certification of organi- zations to nominate for provisions relating to findings and issuance of orders. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–198 effective Jan. 1, 1986, see section 1601(c) of Pub. L. 99–198, set out as a note under section 2901 of this title. § 2906. Requirement of referendum (a) Continuation or termination of order For the purpose of determining whether the initial order shall be continued, not later than 22 months after the issuance of the order (or any earlier date recommended by the Board), the Secretary shall conduct a referendum among persons who have been producers or importers during a representative period, as determined by the Secretary. The order shall be continued only if the Secretary determines that it has been ap- proved by not less than a majority of the pro- ducers voting in the referendum who, during a representative period as determined by the Sec- retary, have been engaged in the production of cattle. If continuation of the order is not ap- proved by a majority of those voting in the ref- erendum, the Secretary shall terminate collec- tion of assessments under the order within six months after the Secretary determines that con- tinuation of the order is not favored by a major- ity voting in the referendum and shall termi- nate the order in an orderly manner as soon as practicable after such determination. (b) Additional referendum to determine suspen- sion or termination of order After the initial referendum, the Secretary may conduct a referendum on the request of a representative group comprising 10 per centum or more of the number of cattle producers to de- termine whether cattle producers favor the ter- mination or suspension of the order. The Sec- retary shall suspend or terminate collection of assessments under the order within six months after the Secretary determines that suspension or termination of the order is favored by a ma- jority of the producers voting in the referendum who, during a representative period as deter- mined by the Secretary, have been engaged in the production of cattle and shall terminate or suspend the order in an orderly manner as soon as practicable after such determination. (c) Reimbursement for cost of referendum; time and place of referendum; certification by producers; absentee mail ballot The Department shall be reimbursed from as- sessments collected by the Board for any ex- Page 1547 TITLE 7—AGRICULTURE § 2907 1 See References in Text note below. penses incurred by the Department in connec- tion with conducting any referendum under this section, except for the salaries of Government employees. Any referendum conducted under this section shall be conducted on a date estab- lished by the Secretary, whereby producers shall certify that they were engaged in the production of cattle during the representative period and, on the same day, shall be provided an oppor- tunity to vote in the referendum. Each ref- erendum shall be conducted at county extension offices, and there shall be provision for an ab- sentee mail ballot on request. (Pub. L. 94–294, § 7, May 28, 1976, 90 Stat. 531; Pub. L. 99–198, title XVI, § 1601(b), Dec. 23, 1985, 99 Stat. 1604.) Editorial Notes AMENDMENTS 1985—Pub. L. 99–198 amended section generally, sub- stituting provisions relating to requirement of ref- erendum for provisions relating to permissive terms and conditions in orders. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–198 effective Jan. 1, 1986, see section 1601(c) of Pub. L. 99–198, set out as a note under section 2901 of this title. § 2907. Refunds (a) Establishment of escrow account During the period prior to the approval of the continuation of an order pursuant to the ref- erendum required under section 2906(a) of this title, subject to subsection (f), the Board shall— (1) establish an escrow account to be used for assessment refunds; (2) place funds in such account in accordance with subsection (b); and (3) refund assessments to persons in accord- ance with this section. (b) Funding escrow account Subject to subsection (f), the Board shall place in such account, from assessments collected under section 2906 of this title during the period referred to in subsection (a), an amount equal to the product obtained by multiplying— (1) the total amount of assessments col- lected under section 2906 of this title during such period; by (2) the greater of— (A) the average rate of assessment refunds provided to producers under State beef pro- motion, research, and consumer information programs financed through producer assess- ments, as determined by the Board; or (B) 15 percent. (c) Demand and receipt of one-time refund Subject to subsections (d), (e), and (f) and not- withstanding any other provision of this chap- ter,1 any person shall have the right to demand and receive from the Board a one-time refund of all assessments collected under section 2906 of this title from such person during the period re- ferred to in subsection (a) if such person— (1) is responsible for paying such assessment; and (2) does not support the program established under this chapter. (d) Form and time period for demand for one- time refund Such demand shall be made in accordance with regulations, on a form, and within a time period prescribed by the Board. (e) Submission of proof for one-time refund Such refund shall be made on submission of proof satisfactory to the Board that the pro- ducer, person, or importer— (1) paid the assessment for which refund is sought; and (2) did not collect such assessment from an- other producer, person, or importer. (f) Insufficiency of funds in escrow account; pro- ration of funds among eligible persons (1) If the amount in the escrow account re- quired to be established by subsection (a) is not sufficient to refund the total amount of assess- ments demanded by all eligible persons under this section and the continuation of an order is approved pursuant to the referendum required under section 2906(a) 1 of this title, the Board shall— (A) continue to place in such account, from assessments collected under section 2904 of this title, the amount required under sub- section (b), until such time as the Board is able to comply with subparagraph (B); and (B) provide to all eligible persons the total amount of assessments demanded by all eligi- ble producers. (2) If the amount in the escrow account re- quired to be established by subsection (a) is not sufficient to refund the total amount of assess- ments demanded by all eligible persons under this section and the continuation of an order is not approved pursuant to the referendum re- quired under section 2906(a) of this title, the Board shall prorate the amount of such refunds among all eligible persons who demand such re- fund. (Pub. L. 94–294, § 8, May 28, 1976, 90 Stat. 532; Pub. L. 99–198, title XVI, § 1601(b), Dec. 23, 1985, 99 Stat. 1604.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in provisions preceding par. 1 of subsec. (c), was in the original ‘‘this subtitle’’, and was translated as reading ‘‘this Act’’ to reflect the probable intent of Congress. Section 2906(a) of this title, referred to in subsec. (f)(1), was in the original a reference to section 10(a) of Pub. L. 94–294, section 2909(a) of this title, and was translated as section 2906(a) of this title as the probable intent of Congress, in view of section 2909 of this title not containing a subsec. (a) and the subject matter of section 2906(a) which relates to a referendum. AMENDMENTS 1985—Pub. L. 99–198 amended section generally, sub- stituting provisions relating to refunds for provisions relating to required terms and conditions in orders. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–198 effective Jan. 1, 1986, see section 1601(c) of Pub. L. 99–198, set out as a note under section 2901 of this title.