7 U.S.C. § 4809 — Assessments

Page 1724 TITLE 7—AGRICULTURE § 4809 1 So in original. Probably should be ‘‘section’’. (6) A member of the Board shall serve without compensation, but shall be reimbursed by the Board from assessments collected under section 4809 of this title for reasonable expenses in- curred in performing duties as a member of the Board. (b)(1) The Board shall— (A) develop, at the initiative of the Board or other person, proposals for promotion, re- search, and consumer information plans and projects; (B) submit such plans and projects to the Secretary for approval; (C) administer the order, in accordance with the order and this chapter; (D) prescribe such rules as are necessary to carry out such order; (E) receive, investigate, and report to the Secretary complaints of violations of such order; (F) make recommendations to the Secretary with respect to amendments to such order; and (G) employ a staff and conduct routine busi- ness. (2) The Board shall prepare and submit to the Secretary, for the approval of the Secretary, a budget for each fiscal year of anticipated ex- penses and disbursements of the Board in the ad- ministration of the order, including the pro- jected cost of— (A) any promotion, research or consumer in- formation plan or project to be conducted by the Board directly or by way of contract or agreement; and (B) the budgets, plans, or projects for which State associations are to receive funds pursu- ant to section 4809(c)(1) of this title. (3) No plan, project, or budget referred to in paragraph (1) or (2) may become effective unless approved by the Secretary. (4)(A) The Board, with the approval of the Sec- retary, may enter into contracts or agreements with a person for— (i) the development and conduct of activities authorized under an order; and (ii) the payment of the cost thereof with funds collected through assessments under such order. (B) Such contract or agreement shall require that— (i) the contracting party develop and submit to the Board a plan or project, together with a budget or budgets that include the estimated cost to be incurred under such plan or project; (ii) such plan or project become effective on the approval of the Secretary; and (iii) the contracting party— (I) keep accurate records of all relevant transactions of the party; (II) make periodic reports to the Board of— (aa) relevant activities the party has conducted; and (bb) an accounting for funds received and expended under such contract; and (III) make such other reports as the Sec- retary or Board may require. (Pub. L. 99–198, title XVI, § 1619, Dec. 23, 1985, 99 Stat. 1612.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1986, see section 1631 of Pub. L. 99–198, set out as a note under section 4801 of this title. § 4809. Assessments (a) Collection and remission to Board; persons required to pay (1) The order shall provide that, not later than 30 days after the effective date of the order under section 4805(c) of this title an assessment shall be paid, in the manner prescribed in the order. Upon the appointment of the Board, the assessments held in escrow shall be distributed to the Board. Except as provided in paragraph (3), assessments shall be payable by— (A) each producer for each porcine animal described in subparagraph (A) or (C) of section 4802(8) of this title produced in the United States that is sold or slaughtered for sale; (B) each producer for each porcine animal described in subsection 1 4802(8)(B) of this title that is sold; and (C) each importer for each porcine animal, pork, or pork product that is imported into the United States. (2) Such assessment shall be collected and re- mitted to the Board once it is appointed pursu- ant to section 4808 of this title, but, until that time, to the Secretary, who shall promptly pro- ceed to distribute the funds received by him in accordance with the provisions of subsection (c), except that the Secretary shall retain the funds to be received by the Board until such time as the Board is appointed pursuant to section 4808 of this title, by— (A) in the case of subparagraph (A) of para- graph (1), the purchaser of the porcine animal referred to in such subparagraph; (B) in the case of subparagraph (B) of para- graph (1), the producer of the porcine animal referred to in such subparagraph; and (C) in the case of subparagraph (C) of para- graph (1), the importer referred to in such sub- paragraph. (3) A person is not required to pay an assess- ment for a porcine animal, pork, or pork prod- uct under paragraph (1) if such person proves to the Board that an assessment was paid pre- viously under such paragraph by a person for such porcine animal (of the same category de- scribed in subparagraph (A), (B), or (C) of sec- tion 4802(8) of this title), pork, or pork product. (b) Rate of assessment; increase; waiver of collec- tion of assessment (1) Except as provided in paragraph (2), the rate of assessment prescribed by the initial order shall be the lesser of— (A) 0.25 percent of the market value of the porcine animal, pork, or pork product sold or imported; or (B) an amount established by the Secretary based on a recommendation of the Delegate Body. (2) Except as provided in paragraph (3), the rate of assessment in the initial order may be Page 1725 TITLE 7—AGRICULTURE § 4809 2 So in original. The period probably should be a comma. 3 So in original. Probably should be ‘‘section’’. 4 See References in Text note below. increased by not more than 0.1 percent per year on recommendation of the Delegate Body. (3) The rate of assessment may not exceed 0.50 percent of such market value unless— (A) after the initial referendum required under section 4811(a) of this title, the Delegate Body recommends an increase in such rate above 0.50 percent; and (B) such increase is approved in a ref- erendum conducted under section 4811(b) of this title. (4)(A) Pork or pork products imported into the United States shall be assessed based on the equivalent value of the live porcine animal from which such pork or pork products were pro- duced, as determined by the Secretary. (B) The Secretary may waive the collection of assessments on a type of such imported pork or pork products if the Secretary determines that such collection is not practicable. (c) Distribution and use Funds collected by the Board from assess- ments collected under this section shall be dis- tributed and used in the following manner: (1)(A) Each State association, shall receive an amount of funds equal to the product ob- tained by multiplying— (i) the aggregate amount of assessments attributable to porcine animals produced in such State by persons described in sub- section (a)(1)(A) and (B) minus that State’s share of refunds determined pursuant to paragraph (4) by such persons pursuant to section 4813 of this title; and (ii) a percentage applicable to such State association determined by the Delegate Body, but in no event less than sixteen and one-half percent, or (B) in the case of a State association that was conducting a pork promotion program in the period from July 1, 1984, to June 30, 1985, if greater than (A) an amount of funds equal to the amount of funds that would have been col- lected in such State pursuant to the pork pro- motion program in existence in such State from July 1, 1984, to June 30, 1985, had the por- cine animals, subject to assessment and to which no refund was received in such State in each year following December 23, 1985, been produced from July 1, 1984, to June 30, 1985, and been subject to the rates of assessments then in effect and the rate of return then in ef- fect from each State to the Council described in paragraph (2)(A), and other national enti- ties involved in pork promotion, research and consumer information. (C) A State association shall use such funds and any proceeds from the investment of such funds for financing— (i) promotion, research, and consumer in- formation plans and projects, and (ii) administrative expenses incurred in connection with such plans and projects. (2)(A) The National Pork Producers Council, a nonprofit corporation of the type described in section 501(c)(3) of title 26 and incorporated in the State of Iowa, shall receive an amount of funds equal to— (i) 371⁄2 percent of the aggregate amount of assessments collected under this section throughout the United States from the date assessment commences pursuant to sub- section (a)(1) until the first day of the month following the month in which the Board is appointed pursuant to section 4808 of this title.2 (ii) 35 percent thereafter until the ref- erendum is conducted pursuant to section 4811 of this title, (iii) 25 percent until twelve months after the referendum is conducted, and (iv) no funds thereafter except in so far as it obtains such funds from the Board pursu- ant to sections 3 4808 or 4809 of this title, each of which amounts determined under (i), (ii), and (iii) shall be less the Council’s share of refunds determined pursuant to paragraph (4). (B) The Council shall use such funds and pro- ceeds from the investment of such funds for fi- nancing— (i) promotion, research, and consumer in- formation plans and projects, and (ii) administrative expenses of the Council. (3)(A) The Board shall receive the amount of funds that remain after the distribution re- quired under paragraphs (1) and (2). (B) The Board shall use such funds and any proceeds from the investment of such funds pursuant to subsection (g) for— (i) financing promotion, research, and con- sumer information plans and projects in ac- cordance with this chapter; 4 (ii) such expenses for the administration, maintenance, and functioning of the Board as may be authorized by the Secretary; (iii) accumulation of a reasonable reserve to permit an effective promotion, research, and consumer information program to con- tinue in years when the amount of assess- ments may be reduced; and (iv) administrative costs incurred by the Secretary to carry out this chapter,4 includ- ing any expenses incurred for the conduct of a referendum under this chapter.4 (4)(A) Each State’s share of refunds shall be determined by multiplying the aggregate amount of refunds received by producers in such State by the percentage applicable to such State pursuant to paragraph (1)(A)(ii). (B) The National Pork Producers Council’s share of refunds shall be determined by multi- plying its applicable percent of the aggregate amount of assessments by the product of— (i) subtracting from the aggregate amount of refunds received by all producers the ag- gregate amount of State share or refunds in every State determined pursuant to subpara- graph (A), and (ii) adding to that sum the aggregate amount of refunds received by importers. (d) Prohibited promotions No promotion funded with assessments col- lected under this chapter may make— (1) a false or misleading claim on behalf of pork or a pork product; or Page 1726 TITLE 7—AGRICULTURE § 4810 (2) a false or misleading statement with re- spect to an attribute or use of a competing product. (e) Influencing legislation prohibited No funds collected through assessments au- thorized by this section may, in any manner, be used for the purpose of influencing legislation, as defined in section 4911(d) and (e)(2) of title 26. (f) Maintenance of books and records; audits The Board shall— (1) maintain such books and records, and prepare and submit to the Secretary such re- ports from time to time, as may be required by the Secretary for appropriate accounting of the receipt and disbursement of funds en- trusted to the Board or a State association, as the case may be; and (2) cause a complete audit report to be sub- mitted to the Secretary at the end of each fis- cal year. (g) Investment by Board of funds collected The Board, with the approval of the Secretary, may invest funds collected through assessments authorized under this section, pending disburse- ment for a plan or project, only in— (1) an obligation of the United States, or of a State or political subdivision thereof; (2) an interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or (3) an obligation fully guaranteed as to prin- cipal and interest by the United States. (Pub. L. 99–198, title XVI, § 1620, Dec. 23, 1985, 99 Stat. 1614; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (c)(3)(B)(i), (iv), was in the original ‘‘this title’’ and was translated as reading ‘‘this subtitle’’, meaning subtitle B of title XVI of Pub. L. 99–198, which enacted this chapter, as the probable intent of Congress. AMENDMENTS 1986—Subsecs. (c)(2)(A), (e). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1986, see section 1631 of Pub. L. 99–198, set out as a note under section 4801 of this title. § 4810. Permissive provisions (a) Recordkeeping and reporting requirements; incidental and necessary terms and condi- tions On the recommendation of the Board, and with the approval of the Secretary, an order may con- tain one or more of the following provisions: (1) Each person purchasing a porcine animal from a producer for commercial use, and each importer, shall— (A) maintain and make available for in- spection such books and records as may be required by the order; and (B) file reports at the time, in the manner, and having the content prescribed by the order, including documentation of the State of origin of a purchased porcine animal or the place of origin of an imported porcine animal, pork, or pork product. (2) A term or condition— (A) incidental to, and not inconsistent with, the terms and conditions specified in this chapter; and (B) necessary to effectuate the other provi- sions of such order. (b) Availability of information to Secretary and Board; confidentiality; disclosure; issuance of general statement, statistical data, or name of violator of order (1) Information referred to in subsection (a)(1) shall be made available to the Secretary and the Board as is appropriate or necessary for the ef- fectuation, administration, or enforcement of this chapter or an order. (2)(A) Except as provided in subparagraphs (B) and (C), information obtained under subsection (a)(1) shall be kept confidential by officers or employees of the Department of Agriculture or the Board. (B) Such information may be disclosed only— (i) in a suit or administrative hearing in- volving the order with respect to which the in- formation was furnished or acquired— (I) brought at the direction or on the re- quest of the Secretary; or (II) to which the Secretary or an officer of the United States is a party; and (ii) if the Secretary considers such informa- tion to be relevant to such suit or hearing. (C) Nothing in this section prohibits— (i) the issuance of a general statement based on the reports of a number of persons subject to an order, or statistical data collected there- from, if such statement or data does not iden- tify the information furnished by any person; or (ii) the publication, by direction of the Sec- retary, of the name of a person violating an order, together with a statement of the par- ticular provisions of the order violated by such person. (c) Penalty for willful violations A person who willfully violates subsection (a)(1) or (b) shall, on conviction, be— (1) subject to a fine of not more than $1,000 or imprisoned for not more than 1 year, or both; and (2) if such person is an employee of the De- partment of Agriculture or the Board, re- moved from office. (Pub. L. 99–198, title XVI, § 1621, Dec. 23, 1985, 99 Stat. 1617.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1986, see section 1631 of Pub. L. 99–198, set out as a note under section 4801 of this title.