
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC610]

 
                          TITLE 7--AGRICULTURE
 
                   CHAPTER 26--AGRICULTURAL ADJUSTMENT
 
                   SUBCHAPTER III--COMMODITY BENEFITS
 
Sec. 610. Administration


(a) Appointment of officers and employees; impounding appropriations

    The Secretary of Agriculture may appoint such officers and 
employees, subject to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, and such experts, as are necessary to execute the 
functions vested in him by this chapter: Provided, That the Secretary 
shall establish the Agricultural Adjustment Administration in the 
Department of Agriculture for the administration of the functions vested 
in him by this chapter: And provided further, That the State 
Administrator appointed to administer this chapter in each State shall 
be appointed by the President, by and with the advice and consent of the 
Senate. Section 8 of Title II of the Act entitled ``An Act to maintain 
the credit of the United States Government,'' approved March 20, 1933, 
to the extent that it provides for the impoundment of appropriations on 
account of reductions in compensation, shall not operate to require such 
impoundment under appropriations contained in this chapter.

(b) State and local committees or associations of producers; handlers' 
        share of expenses of authority or agency

    (1) The Secretary of Agriculture is authorized to establish, for the 
more effective administration of the functions vested in him by this 
chapter, State and local committees, or associations of producers, and 
to permit cooperative associations of producers, when in his judgment 
they are qualified to do so, to act as agents of their members and 
patrons in connection with the distribution of payments authorized to be 
made under section 608 of this title. The Secretary, in the 
administration of this chapter, shall accord such recognition and 
encouragement to producer-owned and producer-controlled cooperative 
associations as will be in harmony with the policy toward cooperative 
associations set forth in existing Acts of Congress, and as will tend to 
promote efficient methods of marketing and distribution.
    (2)(i) Each order relating to milk and its products issued by the 
Secretary under this chapter shall provide that each handler subject 
thereto shall pay to any authority or agency established under such 
order such handler's pro rata share (as approved by the Secretary) of 
such expenses as the Secretary may find will necessarily be incurred by 
such authority or agency, during any period specified by him, for the 
maintenance and functioning of such authority or agency, other than 
expenses incurred in receiving, handling, holding, or disposing of any 
quantity of milk or products thereof received, handled, held, or 
disposed of by such authority or agency for the benefit or account of 
persons other than handlers subject to such order. The pro rata share of 
the expenses payable by a cooperative association of producers shall be 
computed on the basis of the quantity of milk or product thereof covered 
by such order which is distributed, processed, or shipped by such 
cooperative association of producers.
    (ii) Each order relating to any other commodity or product issued by 
the Secretary under this chapter shall provide that each handler subject 
thereto shall pay to any authority or agency established under such 
order such handler's pro rata share (as approved by the Secretary) of 
such expenses as the Secretary may find are reasonable and are likely to 
be incurred by such authority or agency, during any period specified by 
him, for such purposes as the Secretary may, pursuant to such order, 
determine to be appropriate, and for the maintenance and functioning of 
such authority or agency, other than expenses incurred in receiving, 
handling, holding, or disposing of any quantity of a commodity received, 
handled, held, or disposed of by such authority or agency for the 
benefit or account of persons other than handlers subject to such order. 
The pro rata share of the expenses payable by a cooperative association 
of producers shall be computed on the basis of the quantity of the 
agricultural commodity or product thereof covered by such order which is 
distributed, processed, or shipped by such cooperative association of 
producers. The payment of assessments for the maintenance and 
functioning of such authority or agency, as provided for herein, may be 
required under a marketing agreement or marketing order throughout the 
period the marketing agreement or order is in effect and irrespective of 
whether particular provisions thereof are suspended or become 
inoperative.
    (iii) Any authority or agency established under an order may 
maintain in its own name, or in the name of its members, a suit against 
any handler subject to an order for the collection of such handler's pro 
rata share of expenses. The several district courts of the United States 
are vested with jurisdiction to entertain such suits regardless of the 
amount in controversy.

(c) Regulations; penalty for violation

    The Secretary of Agriculture is authorized, with the approval of the 
President, to make such regulations with the force and effect of law as 
may be necessary to carry out the powers vested in him by this chapter. 
Any violation of any regulation shall be subject to such penalty, not in 
excess of $100, as may be provided therein.

(d) Regulations of Secretary of the Treasury

    The Secretary of the Treasury is authorized to make such regulations 
as may be necessary to carry out the powers vested in him by this 
chapter.

(e) Review of official acts

    The action of any officer, employee, or agent in determining the 
amount of and in making any payment authorized to be made under section 
608 of this title shall not be subject to review by any officer of the 
Government other than the Secretary of Agriculture or Secretary of the 
Treasury.

(f) Geographical application

    The provisions of this chapter shall be applicable to the United 
States and its possessions, except the Virgin Islands, American Samoa, 
the Canal Zone, and the island of Guam; except that, in the case of 
sugar beets and sugarcane, the President, if he finds it necessary in 
order to effectuate the declared policy of this chapter, is authorized 
by proclamation to make the provisions of this chapter applicable to the 
Virgin Islands, American Samoa, the Canal Zone, and/or the island of 
Guam.

(g) Officers; dealing or speculating in agricultural products; penalties

    No person shall, while acting in any official capacity in the 
administration of this chapter, speculate, directly or indirectly, in 
any agricultural commodity or product thereof to which this chapter 
applies, or in contracts relating thereto, or in the stock or membership 
interest of any association or corporation engaged in handling, 
processing, or disposing of any such commodity or product. Any person 
violating this subsection shall upon conviction thereof be fined not 
more than $10,000 or imprisoned not more than two years, or both.

(h) Adoption of Federal Trade Commission Act; hearings; report of 
        violations to Attorney General

    For the efficient administration of the provisions of this chapter, 
the provisions, including penalties, of sections 48, 49, and 50 of title 
15, are made applicable to the jurisdiction, powers, and duties of the 
Secretary in administering the provisions of this chapter, and to any 
person subject to the provisions of this chapter, whether or not a 
corporation. Hearings authorized or required under this chapter shall be 
conducted by the Secretary of Agriculture or such officer or employee of 
the Department as he may designate for the purpose. The Secretary may 
report any violation of any agreement entered into under this chapter, 
to the Attorney General of the United States, who shall cause 
appropriate proceedings to enforce such agreement to be commenced and 
prosecuted in the proper courts of the United States without delay.

(i) Cooperation with State authorities; imparting information

    The Secretary of Agriculture upon the request of the duly 
constituted authorities of any State is directed, in order to effectuate 
the declared policy of this chapter and in order to obtain uniformity in 
the formulation, administration, and enforcement of Federal and State 
programs relating to the regulation of the handling of agricultural 
commodities or products thereof, to confer with and hold joint hearings 
with the duly constituted authorities of any State, and is authorized to 
cooperate with such authorities; to accept and utilize, with the consent 
of the State, such State and local officers and employees as may be 
necessary; to avail himself of the records and facilities of such 
authorities; to issue orders (subject to the provisions of section 608c 
of this title) complementary to orders or other regulations issued by 
such authorities; and to make available to such State authorities the 
records and facilities of the Department of Agriculture: Provided, That 
information furnished to the Secretary of Agriculture pursuant to 
section 608d(1) of this title shall be made available only to the extent 
that such information is relevant to transactions within the regulatory 
jurisdiction of such authorities, and then only upon a written agreement 
by such authorities that the information so furnished shall be kept 
confidential by them in a manner similar to that required of Federal 
officers and employees under the provisions of section 608d(2) of this 
title.

(j) Definitions

    The term ``interstate or foreign commerce'' means commerce between 
any State, Territory, or possession, or the District of Columbia, and 
any place outside thereof; or between points within the same State, 
Territory, or possession, or the District of Columbia, but through any 
place outside thereof; or within any Territory or possession, or the 
District of Columbia. For the purpose of this chapter (but in nowise 
limiting the foregoing definition) a marketing transaction in respect to 
an agricultural commodity or the product thereof shall be considered in 
interstate or foreign commerce if such commodity or product is part of 
that current of interstate or foreign commerce usual in the handling of 
the commodity or product whereby they, or either of them, are sent from 
one State to end their transit, after purchase, in another, including 
all cases where purchase or sale is either for shipment to another State 
or for the processing within the State and the shipment outside the 
State of the products so processed. Agricultural commodities or products 
thereof normally in such current of interstate or foreign commerce shall 
not be considered out of such current through resort being had to any 
means or device intended to remove transactions in respect thereto from 
the provisions of said sections. As used herein, the word ``State'' 
includes Territory, the District of Columbia, possession of the United 
States, and foreign nations.

(May 12, 1933, ch. 25, title I, Sec. 10, 48 Stat. 37; June 16, 1933, ch. 
98, title VIII, Sec. 86, 48 Stat. 273; May 9, 1934, ch. 263, Sec. 7, 48 
Stat. 675; Aug. 24, 1935, ch. 641, Secs. 16-18, 49 Stat. 767; Aug. 26, 
1935, ch. 685, 49 Stat. 801; June 22, 1936, ch. 690, Sec. 601(a), 49 
Stat. 1739; June 3, 1937, ch. 296, Secs. 1, 2(g)-(i), 50 Stat. 246, 248; 
Proc. No. 2695, eff. July 4, 1946, 11 F.R. 7817, 60 Stat. 1352; Aug. 1, 
1947, ch. 425, Sec. 3, 61 Stat. 709; Oct. 28, 1949, ch. 782, title XI, 
Sec. 1106(a), 63 Stat. 972.)

                       References in Text

    Section 8 of title II of the Act entitled ``An Act to maintain the 
credit of the United States Government,'', referred to in subsec. (a), 
means act Mar. 20, 1933, ch. 3, title II, Sec. 8, 48 Stat. 15, which is 
not classified to the Code.
    For definition of Canal Zone, referred to in subsec. (f), see 
section 3602(b) of Title 22, Foreign Relations and Intercourse.

                          Codification

    In subsec. (a), ``chapter 51 and subchapter III of chapter 53 of 
title 5'' substituted for ``the Classification Act of 1949'' on 
authority of Pub. L. 89-554, Sec. 7(b), Sept. 6, 1966, 80 Stat. 631, the 
first section of which enacted Title 5, Government Organization and 
Employees.
    Provisions of subsec. (a), which authorized appointment of officers 
and employees without regard to the civil-service laws and regulations 
and which limited the maximum salary payable to any officer or employee 
to not more than $10,000 per annum, were omitted from the Code as 
obsolete and superseded. Such appointments are now subject to the civil 
service laws unless specifically excepted by those laws or by laws 
enacted subsequent to Executive Order 8743, Apr. 23, 1941, issued by the 
President pursuant to act Nov. 26, 1940, ch. 919, title I, Sec. 1, 54 
Stat. 1211, which covered most excepted positions into the classified 
(competitive) civil service. The Order is set out as a note under 
section 3301 of Title 5.
    The salary limitation was superseded by the Classification Act of 
1949.
    References to the Philippine Islands in subsec. (f) of this section 
were omitted from the Code as obsolete in view of the independence of 
the Philippine Islands, proclaimed by the President of the United States 
in Proc. No. 2695, which is set out as a note under section 1394 of 
Title 22, Foreign Relations and Intercourse.


                               Amendments

    1949--Subsec. (a). Act Oct. 28, 1949, substituted ``Classification 
Act of 1949'' for ``Classification Act of 1923''.
    1947--Subsec. (b)(2). Act Aug. 1, 1947, among other changes inserted 
subpar. (i), designated former first and second sentences of subsection 
as subpar. (ii) and inserted last sentence relating to the payment of 
assessments for the maintenance and functioning of such authority 
thereto, and designated former third and fourth sentences of subsection 
as subpar. (iii).
    1937--Subsec. (c). Act June 3, 1937, Sec. 2(g), struck out last 
clause of first sentence which related to regulations establishing 
conversion factors for any commodity and article processed therefrom to 
determine the amount of tax imposed or refunds to be made with respect 
thereto.
    Subsec. (f). Act June 3, 1937, Sec. 2(b), struck out sentence which 
authorized the President to attach by executive order any or all 
possessions to any internal-revenue district for the purpose of carrying 
out provisions with respect to the collection of taxes.
    Subsec. (j). Act June 3, 1937, Sec. 2(i), added subsec. (j).
    1936--Subsec. (d). Act June 22, 1936, reenacted subsec. (d) for 
refund purposes.
    1935--Subsec. (b). Act Aug. 24, 1935, Sec. 16, among other changes 
inserted ``The Secretary, in the administration of this chapter, shall 
accord such recognition and encouragement to producer-owned and 
producer-controlled cooperative associations as will be in harmony with 
the policy toward cooperative associations set forth in existing Acts of 
Congress, and as will tend to promote efficient methods of marketing and 
distribution.
    ``(2) Each order issued by the Secretary under this chapter shall 
provide that each handler subject thereto shall pay to any authority or 
agency established under such order such handler's pro rata share (as 
approved by the Secretary) of such expenses as the Secretary may find 
will necessarily be incurred by such authority or agency, during any 
period specified by him, for the maintenance and functioning of such 
authority or agency, other than expenses incurred in receiving, 
handling, holding, or disposing of any quantity of a commodity received, 
handled, held, or disposed of by such authority or agency for the 
benefit or account of persons other than handlers subject to such order. 
The pro rata share of the expenses payable by a cooperative association 
of producers shall be computed on the basis of the quantity of the 
agricultural commodity or product thereof covered by such order which is 
distributed, processed, or shipped by such cooperative association of 
producers. Any such authority or agency may maintain in its own name, or 
in the names of its members, a suit against any handler subject to an 
order for the collection of such handler's pro rata share of expenses. 
The several District Courts of the United States are hereby vested with 
jurisdiction to entertain such suits regardless of the amount in 
controversy.''
    Subsec. (e). Act Aug. 24, 1935, Sec. 17, struck out ``rental or 
benefit payment'' and inserted in lieu thereof ``payment authorized to 
be made under section 8''.
    Subsec. (f). Act Aug. 26, 1935, inserted sentence authorizing the 
President to attach by executive order any or all possessions to any 
internal-revenue district for the purpose of carrying out provisions 
with respect to the collection of taxes.
    Subsec. (i). Act Aug. 24, 1935, Sec. 18, added subsec. (i).
    1934--Subsec. (f). Act May 9, 1934, inserted exception provision.
    1933--Subsec. (a). Act June 16, 1933, inserted ``And provided 
further, That the State Administrator appointed to administer this 
chapter in each State shall be appointed by the President, by and with 
the advice and consent of the Senate'' at end of first sentence.


                                 Repeals

    Act Oct. 28, 1949, ch. 782, cited as a credit to this section, was 
repealed (subject to a savings clause) by Pub. L. 89-554, Sept. 6, 1966, 
Sec. 8, 80 Stat. 632, 655.

                          Transfer of Functions

    Functions of all officers, agencies, and employees of Department of 
Agriculture transferred, with certain exceptions, to Secretary of 
Agriculture by 1953 Reorg. Plan No. 2, Sec. 1, eff. June 4, 1953, 18 
F.R. 3219, 67 Stat. 633, set out as a note under section 2201 of this 
title.
    Executive and administrative functions of Federal Trade Commission, 
with certain reservations, transferred to Chairman of Commission by 1950 
Reorg. Plan No. 8, Sec. 1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 
1264, set out in the Appendix to Title 5, Government Organization and 
Employees.
    1946 Reorg. Plan No. 3, Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 
60 Stat. 1100, set out in the Appendix to Title 5, transferred functions 
of Agricultural Adjustment Administration to Secretary of Agriculture. 
In his letter to Congress, the President stated that purpose of this 
transfer was to permit Secretary of Agriculture to continue 
consolidation already effected in Production and Marketing 
Administration. By temporary Executive Orders 9069 and 9577, and Ex. 
Ord. No. 9280, Dec. 5, 1942, 7 F.R. 10, 179, and Ex. Ord. No. 9322, Mar. 
26, 1943, 8 F.R. 3807, as amended by Ex. Ord. No. 9334, Apr. 19, 1943, 8 
F.R. 5423, the Agricultural Adjustment Administration had been 
successively consolidated into Agricultural Conservation and Adjustment 
Administration, Food Production Administration, and War Food 
Administration, which was terminated and its functions transferred to 
Secretary of Agriculture by said Ex. Ord. 9577. Secretary of Agriculture 
consolidated functions of Agricultural Adjustment Administration into 
Production and Marketing Administration by Memorandum 1118, Aug. 18, 
1945.


                      Validity of Section Affirmed

    Act June 3, 1937, Sec. 1, affirmed, validated, and reenacted without 
change the provisions of subsecs. (a), (b) (2), (c), and (f) to (i) of 
this section, except for the amendments to subsecs. (c) and (f) by 
section 2 of the act. See note set out under section 601 of this title.


Appropriations for Refunds and Payments of Processing and Related Taxes 
                         and Limitations Thereon

    Acts June 25, 1938, ch. 681, 52 Stat. 1150; May 6, 1939, ch. 115, 
Sec. 1, 53 Stat. 661, 662; Feb. 12, 1940, ch. 28, Sec. 1, 54 Stat. 36; 
Mar. 25, 1940, ch. 71, title I, 54 Stat. 61; May 31, 1941, ch. 156, 
title I, Sec. 1, 55 Stat. 218; Mar. 10, 1942, ch. 178, title I, Sec. 1, 
56 Stat. 156; June 30, 1943, ch. 179, title I, 57 Stat. 257; Apr. 22, 
1944, ch. 175, title I, Sec. 1, 58 Stat. 201; Apr. 24, 1945, ch. 92, 
title I, 59 Stat. 62; July 20, 1946, ch. 588, title I, 60 Stat. 574.

      Ex. Ord. No. 10199. Regulations Without Approval of President

    Ex. Ord. No. 10199, Dec. 21, 1950, 15 F.R. 9217, provided:
    By virtue of the authority vested in me by the act of August 8, 
1950, Public Law 673, 81st Congress [sections 301 to 303 of Title 3] I 
hereby authorize the Secretary of Agriculture to make without the 
approval of the President such regulations with the force and effect of 
law as may be necessary to carry out the powers vested in him by the 
Agricultural Marketing Agreement Act of 1937, as amended [this chapter].
                                                         Harry S Truman.

                  Section Referred to in Other Sections

    This section is referred to in sections 608c, 671, 672, 673, 855, 
1392 of this title; title 5 sections 3502, 6312, 8332.
