
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: 7USC7414]

 
                          TITLE 7--AGRICULTURE
 
                   CHAPTER 101--AGRICULTURAL PROMOTION
 
     SUBCHAPTER II--ISSUANCE OF ORDERS FOR PROMOTION, RESEARCH, AND 
        INFORMATION ACTIVITIES REGARDING AGRICULTURAL COMMODITIES
 
Sec. 7414. Required terms in orders


(a) In general

    Each order shall contain the terms and conditions specified in this 
section.

(b) Board

                          (1) Establishment

        Each order shall establish a board to carry out a program of 
    generic promotion, research, and information regarding the 
    agricultural commodity covered by the order and intended to 
    effectuate the purpose of this subchapter.

                        (2) Board membership

        (A) Number of members

            Each board shall consist of the number of members considered 
        by the Secretary, in consultation with the agricultural 
        commodity industry involved, to be appropriate to administer the 
        order. In addition to members, the Secretary may also provide 
        for alternates on the board.

        (B) Appointment

            The Secretary shall appoint the members and any alternates 
        of a board from among producers of the agricultural commodity 
        and first handlers and others in the marketing chain as 
        appropriate. If imports of the agricultural commodity covered by 
        an order are subject to assessment under section 7415(f) of this 
        title, the Secretary shall also appoint importers as members of 
        the board and as alternates if alternates are included on the 
        board. The Secretary may appoint 1 or more members of the 
        general public to each board.

        (C) Nominations

            The Secretary may make appointments from nominations made 
        pursuant to the method set forth in the order.

        (D) Geographical representation

            To ensure fair and equitable representation of the 
        agricultural commodity industry covered by an order, the 
        composition of each board shall reflect the geographical 
        distribution of the production of the agricultural commodity 
        involved in the United States and the quantity or value of the 
        agricultural commodity imported into the United States.

               (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

            Each order shall provide for notice of board vacancies to 
        the agricultural commodity industry involved.

        (B) Meetings

            Each board shall provide the Secretary with prior notice of 
        meetings of the board to permit the Secretary, or a designated 
        representative of the Secretary, to attend the meetings.

                         (5) Term of office

        (A) In general

            The members and any alternates of a board shall each serve 
        for a term of 3 years, except that the members and any 
        alternates initially appointed to a board shall serve for terms 
        of not more than 2, 3, and 4 years, as specified by the order.

        (B) Limitation on consecutive terms

            A member or alternate may serve not more than 2 consecutive 
        terms.

        (C) Continuation of term

            Notwithstanding subparagraph (B), each member or alternate 
        shall continue to serve until a successor is appointed by the 
        Secretary.

        (D) Vacancies

            A vacancy arising before the expiration of a term of office 
        of an incumbent member or alternate of a board shall be filled 
        in a manner provided for in the order.

                          (6) Compensation

        (A) In general

            Members and any alternates of a board shall serve without 
        compensation.

        (B) Travel expenses

            If approved by a board, members or alternates shall be 
        reimbursed for reasonable travel expenses, which may include a 
        per diem allowance or actual subsistence incurred while away 
        from their homes or regular places of business in the 
        performance of services for the board.

(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) of this section, 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) of this section, 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

        Each order shall require the board established under the order 
    to submit to the Secretary for approval plans and projects for 
    promotion, research, or information relating to the agricultural 
    commodity covered by the order.

                             (2) Budgets

        (A) Submission to Secretary

            Each order shall require the board established under the 
        order to submit to the Secretary for approval a budget of its 
        anticipated annual expenses and disbursements to be paid to 
        administer the order. The budget shall be submitted before the 
        beginning of a fiscal year and as frequently as may be necessary 
        after the beginning of the fiscal year.

        (B) Reimbursement of Secretary

            Each order shall require that the Secretary be reimbursed 
        for all expenses incurred by the Secretary in the 
        implementation, administration, and supervision of the order, 
        including all referenda costs incurred in connection with the 
        order.

                       (3) Incurring expenses

        A board may incur the expenses described in paragraph (2) and 
    other expenses for the administration, maintenance, and functioning 
    of the board as authorized by the Secretary.

                       (4) Payment of expenses

        Expenses incurred under paragraph (3) shall be paid by a board 
    using assessments collected under section 7416 of this title, 
    earnings obtained from assessments, and other income of the board. 
    Any funds borrowed by the board shall be expended only for startup 
    costs and capital outlays.

                     (5) Limitation on spending

        For fiscal years beginning 3 or more years after the date of the 
    establishment of a board, the board may not expend for 
    administration (except for reimbursements to the Secretary required 
    under paragraph (2)(B)), maintenance, and functioning of the board 
    in a fiscal year an amount that exceeds 15 percent of the assessment 
    and other income received by the board for the fiscal year.

(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

    In accordance with section 7401(c) of this title, each order shall 
require the board established under the order to provide for the 
independent evaluation of all generic promotion, research, and 
information activities undertaken under the order.

(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

        Any record required to be maintained under paragraph (1) shall 
    be maintained for such time period as the Secretary may prescribe.

                        (3) Other information

        The Secretary may use, and may authorize the board to use under 
    this subchapter, information regarding persons subject to an order 
    that is collected by the Department under any other law.

                 (4) Confidentiality of information

        (A) In general

            Except as otherwise provided in this subchapter, all 
        information obtained under paragraph (1) or as part of a 
        referendum under section 7417 of this title shall be kept 
        confidential by all officers, employees, and agents of the 
        Department and of the board.

        (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

            Any person who willfully violates this subsection shall be 
        subject, on conviction, to a fine of not more than $1,000 or to 
        imprisonment for not more than 1 year, or both.

                     (5) Withholding information

        This subsection shall not authorize the withholding of 
    information from Congress.

(Pub. L. 104-127, title V, Sec. 515, Apr. 4, 1996, 110 Stat. 1036.)

                  Section Referred to in Other Sections

    This section is referred to in section 7415 of this title.
