7 U.S.C. § 2904 — Required terms in orders

Page 1544 TITLE 7—AGRICULTURE § 2904 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. § 2904. Required terms in orders An order issued under section 2903(b) of this title shall contain the following terms and con- ditions: (1) The order shall provide for the establish- ment and selection of a Cattlemen’s Beef Pro- motion and Research Board. Members of the Board shall be cattle producers and importers appointed by the Secretary from (A) nomina- tions submitted by eligible State organiza- tions certified under section 2905 of this title (or, if the Secretary determines that there is no eligible State organization in a State, the Secretary may provide for nominations from such State to be made in a different manner), and (B) nominations submitted by importers under such procedures as the Secretary deter- mines appropriate. In determining geographic representation for cattle producers on the Board, whole States shall be considered as a unit. Each State that has a total cattle inven- tory greater than five hundred thousand head shall be entitled to at least one representative on the Board. A State that has a total inven- tory of fewer than 500,000 cattle shall be grouped, as far as practicable, with other States each of which has a combined total in- ventory of not less than 500,000 cattle, into geographically contiguous units in a manner prescribed in the order. A unit may be rep- resented on the Board by more than one mem- ber. For each additional million head of cattle within a unit, such unit shall be entitled to an additional member on the Board. The Board may recommend a change in the level of in- ventory per unit necessary for representation on the Board and, on such recommendation, the Secretary may change the level necessary for representation on the Board. The number of members on the Board that represent im- porters shall be determined by the Secretary on a proportional basis, by converting the vol- ume of imported beef and beef products into live animal equivalencies. (2) The order shall define the powers and du- ties of the Board, which shall be exercised at an annual meeting, and shall include only the following powers: (A) To administer the order in accordance with its terms and provisions. (B) To make rules and regulations to effec- tuate the terms and provisions of the order. (C) To elect members of the Board to serve on the Committee. (D) To approve or disapprove budgets sub- mitted by the Committee. (E) To receive, investigate, and report to the Secretary complaints of violations of the order. (F) To recommend to the Secretary amendments to the order. In addition, the order shall determine the cir- cumstances under which special meetings of the Board may be held. (3) The order shall provide that the term of appointment to the Board shall be three years with no member serving more than two con- secutive terms, except that initial appoint- ments shall be proportionately for one-year, two-year, and three-year terms; and that Board members shall serve without compensa- tion, but shall be reimbursed for their reason- able expenses incurred in performing their du- ties as members of the Board. (4)(A) The order shall provide that the Board shall elect from its membership ten members to serve on the Beef Promotion Operating Committee, which shall be composed of ten members of the Board and ten producers elect- ed by a federation that includes as members the qualified State beef councils. The pro- ducers elected by the federation shall be cer- tified by the Secretary as producers that are directors of a qualified State beef council. The Secretary also shall certify that such direc- tors are duly elected by the federation as rep- resentatives to the Committee. (B) The Committee shall develop plans or projects of promotion and advertising, re- search, consumer information, and industry information, which shall be paid for with as- sessments collected by the Board. In devel- oping plans or projects, the Committee shall— (i) to the extent practicable, take into ac- count similarities and differences between certain beef, beef products, and veal; and (ii) ensure that segments of the beef indus- try that enjoy a unique consumer identity receive equitable and fair treatment under this chapter. (C) The Committee shall be responsible for developing and submitting to the Board, for its approval, budgets on a fiscal year basis of its anticipated expenses and disbursements, including probable costs of advertising and promotion, research, consumer information, and industry information projects. The Board shall approve or disapprove such budgets and, if approved, shall submit such budget to the Secretary for the Secretary’s approval. (D) The total costs of collection of assess- ments and administrative staff incurred by the Board during any fiscal year shall not ex- ceed 5 per centum of the projected total as- sessments to be collected by the Board for such fiscal year. The Board shall use, to the extent possible, the resources, staffs, and fa- cilities of existing organizations. (5) The order shall provide that terms of ap- pointment to the Committee shall be one year, and that no person may serve on the Com- mittee for more than six consecutive terms. Committee members shall serve without com- pensation, but shall be reimbursed for their reasonable expenses incurred in performing their duties as members of the Committee. The Committee may utilize the resources, staffs, and facilities of the Board and industry organizations. An employee of an industry or- ganization may not receive compensation for work performed for the Committee, but shall be reimbursed from assessments collected by the Board for reasonable expenses incurred in performing such work. (6) The order shall provide that, to ensure coordination and efficient use of funds, the Page 1545 TITLE 7—AGRICULTURE § 2904 1 So in original. The word ‘‘from’’ probably should not appear. Committee shall enter into contracts or agree- ments for implementing and carrying out the activities authorized by this chapter with es- tablished national nonprofit industry-gov- erned organizations, including the federation referred to in paragraph (4), to implement pro- grams of promotion, research, consumer infor- mation, and industry information. Any such contract or agreement shall provide that— (A) the person entering the contract or agreement shall develop and submit to the Committee a plan or project together with a budget or budgets that shows estimated costs to be incurred for the plan or project; (B) the plan or project shall become effec- tive on the approval of the Secretary; and (C) the person entering the contract or agreement shall keep accurate records of all of its transactions, account for funds re- ceived and expended, and make periodic re- ports to the Committee of activities con- ducted, and such other reports as the Sec- retary, the Board, or the Committee may re- quire. (7) The order shall require the Board and the Committee to— (A) maintain such books and records, which shall be available to the Secretary for inspection and audit, as the Secretary may prescribe; (B) prepare and submit to the Secretary, from time to time, such reports as the Sec- retary may prescribe; and (C) account for the receipt and disburse- ment of all funds entrusted to them. (8)(A) The order shall provide that each per- son making payment to a producer for cattle purchased from the producer shall, in the manner prescribed by the order, collect an as- sessment and remit the assessment to the Board. The Board shall use qualified State beef councils to collect such assessments. (B) If an appropriate qualified State beef council does not exist to collect an assessment in accordance with paragraph (1), such assess- ment shall be collected by the Board. (C) The order also shall provide that each importer of cattle, beef, or beef products shall pay an assessment, in the manner prescribed by the order, to the Board. The assessments shall be used for payment of the costs of plans and projects, as provided for in paragraph (4), and expenses in administering the order, in- cluding more administrative costs incurred by the Secretary after the order has been promul- gated under this chapter, and to establish a reasonable reserve. The rate of assessment prescribed by the order shall be one dollar per head of cattle, or the equivalent thereof in the case of imported beef and beef products. A pro- ducer who can establish that the producer is participating in a program of an established qualified State beef council shall receive cred- it, in determining the assessment due from such producer, for contributions to such pro- gram of up to 50 cents per head of cattle or the equivalent thereof. There shall be only one qualified State beef council in each State. Any person marketing from 1 beef from cattle of the person’s own production shall remit the assessment to the Board in the manner pre- scribed by the order. (9) The order shall provide that the Board, with the approval of the Secretary, may in- vest, pending disbursement, funds collected through assessments only in obligations of the United States or any agency thereof, in gen- eral obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States. (10) The order shall prohibit any funds col- lected by the Board under the order from being used in any manner for the purpose of influencing governmental action or policy, with the exception of recommending amend- ments to the order. (11) The order shall require that each person making payment to a producer, any person marketing beef from cattle of the person’s own production directly to consumers, and any im- porter of cattle, beef, or beef products main- tain and make available for inspection such books and records as may be required by the order and file reports at the time, in the man- ner, and having the content prescribed by the order. Such information shall be made avail- able to the Secretary as is appropriate to the administration or enforcement of this chapter, the order, or any regulation issued under this chapter. In addition, the Secretary shall au- thorize the use of information regarding per- sons paying producers that is accumulated under a law or regulation other than this chapter or regulations under this chapter. All information so obtained shall be kept confidential by all officers and employees of the Department, and only such information so obtained as the Secretary deems relevant may be disclosed by them and then only in a suit or administrative hearing brought at the request of the Secretary, or to which the Secretary or any officer of the United States is a party, and involving the order. Nothing in this paragraph may be deemed to prohibit— (A) the issuance of general statements, based on the reports, of the number of per- sons subject to the order or statistical data collected therefrom, which statements do not identify the information furnished by any person; or (B) the publication, by direction of the Secretary, of the name of any person vio- lating the order, together with a statement of the particular provisions of the order vio- lated by the person. No information obtained under the author- ity of this chapter may be made available to any agency or officer of the United States for any purpose other than the implementation of this chapter and any investigatory or enforce- ment act necessary for the implementation of this chapter. Any person violating the provi- sions of this paragraph shall be subject to a fine of not more than $1,000, or to imprison- ment for not more than one year, or both, and if an officer or employee of the Board or the Department, shall be removed from office. 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-