§ 2106. — Required terms and conditions in orders.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2106]
TITLE 7--AGRICULTURE
CHAPTER 53--COTTON RESEARCH AND PROMOTION
Sec. 2106. Required terms and conditions in orders
Orders issued pursuant to this chapter shall contain the following
terms and conditions:
(a) Providing for the establishment and selection by the Secretary,
of a Cotton Board, and defining its powers and duties, which shall
include only the powers:
(1) To administer such order in accordance with its terms and
provisions;
(2) To make rules and regulations to effectuate the terms and
provisions of such order, including the designation of the person
responsible for collecting the assessment;
(3) To receive, investigate, and report to the Secretary
complaints of violations of such order; and
(4) To recommend to the Secretary amendments to such order.
(b) Providing that the Cotton Board shall be composed of (1)
representatives of cotton producers selected by the Secretary, from
nominations submitted by eligible producer organizations within a
cotton-producing State, as certified pursuant to section 2113 of this
title, or, if the Secretary determines that a substantial number of
producers are not members of or their interests are not represented by
any such eligible producer organizations, from nominations made by
producers in the manner authorized by the Secretary, so that the
representation of cotton producers on the Board for each cotton-
producing State shall reflect, to the extent practicable, the proportion
which that State's marketings of cotton bears to the total marketings of
cotton in the United States, and (2) when imports of cotton are subject
to an order, an appropriate number of representatives, as determined by
the Secretary, of importers of cotton on which assessments are paid
under this chapter. Such importer representatives shall be appointed by
the Secretary after consultation with organizations representing
importers, as determined by the Secretary. Each cotton-producing State
shall be entitled to at least one representative on the Cotton Board.
(c) Providing that the Cotton Board shall, subject to the provisions
of subsection (g) of this section, develop and submit to the Secretary
for his approval any advertising or sales promotion or research and
development plans or projects, and that any such plan or project must be
approved by the Secretary before becoming effective.
(d) Providing that the Cotton Board shall, subject to the provisions
of subsection (g) of this section, submit to the Secretary for his
approval, budgets on a fiscal period basis of its anticipated expenses
and disbursements in the administration of the order, including probable
costs of advertising and promotion and research and development
projects.
(e)(1) Providing that--
(A) the producer or other person for whom the cotton is being
handled shall pay to the handler of such cotton designated by the
Cotton Board pursuant to regulations issued under the order;
(B) such handler shall collect from the producer or other person
for whom the cotton, including cotton owned by the handler, is being
handled, and shall pay to the Cotton Board; and
(C) each importer shall pay to the Cotton Board on imports of
cotton,
an assessment prescribed by the order, on the basis of bales of cotton
handled or imported. The assessment shall cover such expenses and
expenditures, including provision for a reasonable reserve, as the
Secretary finds are reasonable and likely to be incurred by the Cotton
Board under the order, during any period specified by the Secretary.
(2) The order shall provide for reimbursing the Secretary--
(A) for expenses not to exceed $300,000 incurred by the
Secretary in connection with any referendum conducted under section
2107 of this title; and
(B) for administrative costs incurred by the Secretary for
supervisory work up to 5 employee years after an order or amendment
to an order has been issued and made effective.
There shall also be included in the order a provision for reimbursing
any agency of the Federal Government that assists in administering the
import provisions of the order for a reasonable amount of the expenses
incurred by that agency in connection therewith.
(3) To facilitate the collection and payment of such assessments,
the Cotton Board may designate different handlers or importers or
classes of handlers or importers to recognize differences in marketing
practices or procedures utilized in any State or area, except that no
more than one such assessment shall be made on any bale of cotton,
unless specifically authorized by provisions of this subsection.
(4) The rate of assessment prescribed by the order shall be $1 per
bale of cotton handled, supplemented by an additional per bale amount
not to exceed 1 percent of the value of cotton as determined by the
Cotton Board and the Secretary. The rate of assessment on imports of
cotton shall be determined in the same manner as the rate of assessment
per bale of cotton handled, and the value to be placed on cotton imports
for the purpose of determining the assessment on such imports shall be
established by the Secretary in a fair and equitable manner. The
Secretary shall establish procedures to ensure that the upland cotton
content of imported products is not subject to more than one assessment
under this chapter.
(5) No authority under this chapter may be used as a basis to
advertise or solicit votes in any referendum relating to the rate of
assessment with funds collected under this chapter.
(6) The Secretary may maintain a suit against any person subject to
the order for the collection of such assessment, and the several
district courts of the United States are hereby vested with jurisdiction
to entertain such suits regardless of the amount in controversy. The
remedies provided in this section shall be in addition to, and not
exclusive of, the remedies provided for elsewhere in this chapter or now
or hereafter existing at law or in equity.
(7) The provisions of this subsection and subsection (b) of this
section shall not apply to cottonseed and the products derived from
cottonseed whether domestically produced or imported.
(8) The provisions of this subsection relating to importers and
assessments on imports of cotton shall be effective only if approved in
a referendum as provided in section 2107(b) or 2107(c) of this title.
(f) Providing that the Cotton Board shall maintain such books and
records and prepare and submit such reports from time to time, to the
Secretary as he may prescribe, and for appropriate accounting by the
Cotton Board with respect to the receipt and disbursement of all funds
entrusted to it.
(g) Providing that the Cotton Board, with the approval of the
Secretary, shall enter into contracts or agreements for the development
and carrying out of the activities authorized under the order pursuant
to sections 2105(a) and (b) of this title and for the payment of the
costs thereof with funds collected pursuant to the order, with an
organization or association whose governing body consists of cotton
producers selected by the cotton producer organizations certified by the
Secretary under section 2113 of this title, in such manner that the
producers of each cotton-producing State will, to the extent
practicable, have representation on the governing body of such
organization in the proportion that the cotton marketed by the producers
of such State bears to the total cotton marketed by the producers of all
cotton-producing States, subject to adjustments to reflect lack of
participation in the program by reason of refunds under section 2110 of
this title. Any such contract or agreement shall provide that such
contracting organization or association shall develop and submit
annually to the Cotton Board, for the purpose of review and making
recommendations to the Secretary, a program of research, advertising,
and sales promotion projects, together with a budget, or budgets, which
shall show the estimated cost to be incurred for such projects, and that
any such projects shall become effective upon approval by the Secretary.
Any such contract or agreement shall also provide that the contracting
organization shall keep accurate records of all its transactions and
make an annual report to the Cotton Board of activities carried out and
an accounting for funds received and expended, and such other reports as
the Secretary may require.
(h) Providing that no funds collected by the Cotton Board under the
order shall in any manner be used for the purpose of influencing
governmental policy or action, except as provided by subsection (a)(4)
of this section.
(Pub. L. 89-502, Sec. 7, July 13, 1966, 80 Stat. 281; Pub. L. 94-366,
Secs. 2, 3, July 14, 1976, 90 Stat. 991, 992; Pub. L. 101-624, title
XIX, Sec. 1992, Nov. 28, 1990, 104 Stat. 3909; Pub. L. 102-237, title
VIII, Sec. 808(a)(1), Dec. 13, 1991, 105 Stat. 1883.)
Amendments
1991--Subsec. (e)(4). Pub. L. 102-237 made technical amendment to
reference to this chapter to correct error in corresponding reference in
original act.
1990--Subsec. (a)(2). Pub. L. 101-624, Sec. 1992(1), substituted
``person'' for ``handler'' and struck out ``producer'' before
``assessment''.
Subsec. (b). Pub. L. 101-624, Sec. 1992(2), inserted ``(1)'', and
substituted ``, and (2) when imports of cotton are subject to an order,
an appropriate number of representatives, as determined by the
Secretary, of importers of cotton on which assessments are paid under
this chapter. Such importer representatives shall be appointed by the
Secretary after consultation with organizations representing importers,
as determined by the Secretary. Each cotton-producing State shall be
entitled to at least one representative on the Cotton Board.'' for ``:
Provided, however, That each cotton-producing State shall be entitled to
at least one representative on the Cotton Board. The Secretary may
appoint a number of consumer advisors to the Cotton Board not to exceed
15 per centum of the membership of the Cotton Board. The Cotton Board
shall reimburse the consumer advisors for expenses incurred in attending
meetings of the Board in the same manner as the Cotton Board members.''
Subsec. (e). Pub. L. 101-624, Sec. 1992(3), amended subsec. (e)
generally, substituting present provisions for provisions relating to a
producer-paid assessment at a rate of $1 per bale, with a possible per-
bale supplement not to exceed 1 per centum of the value of the cotton,
along with other provisions relating to use of assessment funds,
referendums and procedures concerning any supplemental assessments, and
judicial action to collect assessments.
1976--Subsec. (b). Pub. L. 94-366, Sec. 3, inserted provisions which
authorized Secretary to appoint consumer advisors up to 15 per centum of
the membership of the Cotton Board, and authorized reimbursing such
advisors for expenses incurred in attending the Board meetings.
Subsec. (e). Pub. L. 94-366, Sec. 2, inserted provisions authorizing
reimbursement of the Secretary up to $200,000 for expenses incurred in
conducting a referendum pursuant to section 2107 of this title and for
administrative costs incurred by him for supervisory work up to five
employee years after an order or an amendment to an order has been
issued and made effective, inserted provisions authorizing assessment of
a bale of cotton more than once if called for by a provision in this
subsection, and inserted provisions authorizing Secretary to amend the
rate order to supplement the rate in each marketing year by an
additional per bale amount not to exceed 1 per centum of the value of
the cotton as determined by the Cotton Board and the Secretary.
Section Referred to in Other Sections
This section is referred to in sections 2105, 2113, 2116 of this
title.
