§ 2707. — 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: 7USC2707]
TITLE 7--AGRICULTURE
CHAPTER 60--EGG RESEARCH AND CONSUMER INFORMATION
Sec. 2707. Required terms and conditions in orders
Orders issued pursuant to this chapter shall contain the following
conditions:
(a) Egg Board; establishment; appointment and terms of membership;
powers and duties
Providing for the establishment and appointment, by the Secretary,
of an Egg Board which shall consist of not more than twenty members, and
alternates therefor, 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, (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.
The term of an appointment to the Egg Board shall be for two years with
no member serving more than three consecutive terms, except that initial
appointment shall be proportionately for two-year and three-year terms.
(b) Composition of Board
Providing that the Egg Board, and alternates therefor, shall be
composed of egg producers or representatives of egg producers appointed
by the Secretary from nominations submitted by eligible organizations,
associations, or cooperatives, and certified pursuant to section 2715 of
this title, or, if the Secretary determines that a substantial number of
egg producers are not members of or their interests are not represented
by any such eligible organizations, associations or cooperatives, then
from nominations made by such egg producers in the manner authorized by
the Secretary, so that the representation of egg producers on the Board
shall reflect, to the extent practicable, the proportion of eggs
produced in each geographic area of the United States as defined by the
Secretary: Provided, however, That each such egg producing geographic
area shall be entitled to at least one representative on the Egg Board:
Provided further, That two members of the Egg Board, and alternates
therefor, shall be consumers or representatives of consumers, if
approved by egg producers voting in a referendum on an amendment to the
order. Such consumer appointments shall be made by the Secretary from
nominations submitted by eligible organizations. If the Secretary
determines that such nominees are not members of either a bona fide
consumer organization or do not represent consumers, the Secretary may
appoint such consumers or representatives of consumers as deemed
necessary to properly represent the interest of consumers. Consumer
members of the Egg Board shall be voting members.
(c) Advertising, sales promotion, consumer education, and research and
development plans or projects; development and submittal to
Secretary by Board
Providing that the Egg Board shall, subject to the provisions of
subsection (g) of this section, develop and submit to the Secretary for
his approval any advertising, sales promotion, consumer education,
research, and development plans or projects, and that any such plan or
project must be approved by the Secretary before becoming effective.
(d) Budgets; submittal to Secretary by Board
Providing that the Egg 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, promotion, consumer education, research, and
development projects. In preparing a budget for each of the 1994 and
subsequent fiscal years, the Egg Board shall, to the maximum extent
practicable, allocate a proportion of funds for research projects under
this chapter that is comparable to the proportion of funds that were
allocated for research projects under this chapter in the budget of the
Egg Board for fiscal year 1993.
(e) Assessment payments by egg producers to egg handlers; implementation
pursuant to order of Board; determination of amount; collection
of assessment; rate limitation; maintenance of suit for
collection
(1) Providing that each egg producer shall pay to the handler of
eggs designated by the order of the Egg Board pursuant to regulations
issued under the order, an assessment based upon the number of cases of
commercial eggs handled for the account of such producer, in the manner
as prescribed by the order, for such expenses and expenditures--
including provision for a reasonable reserve and those administrative
costs incurred by the Department after an order has been promulgated
under this chapter--as the Secretary finds are reasonable and likely to
be incurred by the Egg Board under the order during any period specified
by him. Such handler shall collect such assessment from the producer and
shall pay the same to the Egg Board in the manner as prescribed by the
order.
(2)(A) The assessment rate shall be prescribed by the order. The
rate shall not exceed 20 cents per case (or the equivalent of a case) of
commercial eggs.
(B) The order may be amended to increase the rate of assessment if
the increase is recommended by the Egg Board and approved by egg
producers in a referendum conducted under section 2708(b) of this title.
(C) The order may be amended to decrease the assessment rate after
public notice and opportunity for comment in accordance with section 553
of title 5 and without regard to sections 556 and 557 of such title.
(3) To facilitate the collection of such assessments, the order of
the Egg Board may designate different handlers or classes of handlers to
recognize differences in marketing practices or procedures utilized in
the industry. 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.
(f) Recordkeeping and reporting requirements; accounting by Board
Providing that the Egg 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 Egg Board
with respect to the receipt and disbursement of all funds entrusted to
it.
(g) Contracts or agreements by Board for implementation of orders and
payment of costs; required provisions
Providing that the Egg Board, with the approval of the Secretary,
may enter into contracts or agreements for development and carrying out
of the activities authorized under the order pursuant to section 2706(a)
and (b) of this title and for the payment of the cost thereof with funds
collected pursuant to the order. Any such contract or agreement shall
provide that such contractors shall develop and submit to the Egg Board
a plan or project together with a budget or budgets which shall show
estimated costs to be incurred for such plan or project, and that any
such plan or project shall become effective upon the approval of the
Secretary, and further, shall provide that the contracting party shall
keep accurate records of all of its transactions and make periodic
reports to the Egg Board of activities carried out and an accounting for
funds received and expended, and such other reports as the Secretary may
require.
(h) Restriction on use of funds collected by Board for political
purposes
Providing that no funds collected by the Egg 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.
(i) Compensation and expenses of members of Board
Providing that the Board members, and alternates therefor, shall
serve without compensation, but shall be reimbursed for their reasonable
expenses incurred in performing their duties as members of the Board.
(j) Reasonable costs limitation for collection of assessments and for an
administrative staff
Providing that the total costs incurred by the Egg Board for a
fiscal year in collecting producer assessments and having an
administrative staff shall not exceed an amount of the projected total
assessments to be collected by the Egg Board for such fiscal year that
the Secretary determines to be reasonable.
(Pub. L. 93-428, Sec. 8, Oct. 1, 1974, 88 Stat. 1174; Pub. L. 96-276,
Secs. 2-4, June 17, 1980, 94 Stat. 541; Pub. L. 100-575, Sec. 2, Oct.
31, 1988, 102 Stat. 2895; Pub. L. 103-188, Secs. 2(a), 3, Dec. 14, 1993,
107 Stat. 2256, 2257.)
Amendments
1993--Subsec. (d). Pub. L. 103-188, Sec. 3, inserted at end ``In
preparing a budget for each of the 1994 and subsequent fiscal years, the
Egg Board shall, to the maximum extent practicable, allocate a
proportion of funds for research projects under this chapter that is
comparable to the proportion of funds that were allocated for research
projects under this chapter in the budget of the Egg Board for fiscal
year 1993.''
Subsec. (e). Pub. L. 103-188, Sec. 2(a), designated first and second
sentences of existing provisions as par. (1), added par. (2) and struck
out third and fourth sentences of existing provisions which read as
follows: ``For fiscal year 1981, the rate of assessment prescribed by
the order shall not exceed 7\1/2\ cents per case of commercial eggs or
the equivalent thereof. For each fiscal year thereafter, the rate of
assessment may be increased by no more than three-quarters of a cent per
case of commercial eggs or the equivalent thereof: Provided, That the
rate of assessment shall not exceed 10 cents per case of commercial eggs
or the equivalent thereof.'', and designated fifth and sixth sentences
of existing provisions as par. (3).
1988--Subsec. (j). Pub. L. 100-575 added subsec. (j).
1980--Subsec. (a). Pub. L. 96-276, Sec. 2, substituted ``twenty''
for ``eighteen''.
Subsec. (b). Pub. L. 96-276, Sec. 3, extended membership on the Egg
Board to two consumers or representatives of consumers, and their
alternates, when approved by egg producers voting in a referendum on an
amendment to the order, to be appointed by the Secretary from
nominations submitted by eligible organizations or otherwise when
necessary to properly represent the interest of consumers, the consumer
members to be voting members.
Subsec. (e). Pub. L. 96-276, Sec. 4, substituted rate of assessment
provisions prescribing for fiscal year 1981 a rate not exceeding 7\1/2\
cents per case of commercial eggs or its equivalent, authorizing
increases of three-quarters of a cent per case for each fiscal year
thereafter, but limiting maximum rate to 10 cents per case for prior
limitation of the rate of assessment to 5 cents per case.
Section Referred to in Other Sections
This section is referred to in sections 2706, 2715 of this title.
