§ 2904. — Required terms 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: 7USC2904]
TITLE 7--AGRICULTURE
CHAPTER 62--BEEF RESEARCH AND INFORMATION
Sec. 2904. Required terms in orders
An order issued under section 2903(b) of this title shall contain
the following terms and conditions:
(1) The order shall provide for the establishment and selection
of a Cattlemen's Beef Promotion and Research Board. Members of the
Board shall be cattle producers and importers appointed by the
Secretary from (A) nominations submitted by eligible State
organizations 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 determines
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 inventory greater than five
hundred thousand head shall be entitled to at least one
representative on the Board. A State that has a total inventory of
fewer than 500,000 cattle shall be grouped, as far as practicable,
with other States each of which has a combined total inventory of
not less than 500,000 cattle, into geographically contiguous units
in a manner prescribed in the order. A unit may be represented on
the Board by more than one member. 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 inventory 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 importers shall be determined by
the Secretary on a proportional basis, by converting the volume of
imported beef and beef products into live animal equivalencies.
(2) The order shall define the powers and duties 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 effectuate 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 submitted 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 circumstances 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
consecutive terms, except that initial appointments shall be
proportionately for one-year, two-year, and three-year terms; and
that Board members shall serve without compensation, but shall be
reimbursed for their reasonable expenses incurred in performing
their duties 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 elected by a federation that includes as members the
qualified State beef councils. The producers elected by the
federation shall be certified by the Secretary as producers that are
directors of a qualified State beef council. The Secretary also
shall certify that such directors are duly elected by the federation
as representatives to the Committee.
(B) The Committee shall develop plans or projects of promotion
and advertising, research, consumer information, and industry
information, which shall be paid for with assessments collected by
the Board. In developing plans or projects, the Committee shall--
(i) to the extent practicable, take into account
similarities and differences between certain beef, beef
products, and veal; and
(ii) ensure that segments of the beef industry 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 assessments and
administrative staff incurred by the Board during any fiscal year
shall not exceed 5 per centum of the projected total assessments to
be collected by the Board for such fiscal year. The Board shall use,
to the extent possible, the resources, staffs, and facilities of
existing organizations.
(5) The order shall provide that terms of appointment to the
Committee shall be one year, and that no person may serve on the
Committee for more than six consecutive terms. Committee members
shall serve without compensation, 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 organization 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 Committee shall enter into contracts or
agreements for implementing and carrying out the activities
authorized by this chapter with established national nonprofit
industry-governed organizations, including the federation referred
to in paragraph (4), to implement programs of promotion, research,
consumer information, 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 effective 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
received and expended, and make periodic reports to the
Committee of activities conducted, and such other reports as the
Secretary, the Board, or the Committee may require.
(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 Secretary may prescribe; and
(C) account for the receipt and disbursement of all funds
entrusted to them.
(8)(A) The order shall provide that each person making payment
to a producer for cattle purchased from the producer shall, in the
manner prescribed by the order, collect an assessment 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 assessment 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, including
more administrative costs incurred by the Secretary after the order
has been promulgated 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 producer who can
establish that the producer is participating in a program of an
established qualified State beef council shall receive credit, in
determining the assessment due from such producer, for contributions
to such program 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 prescribed by the order.
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\1\ So in original. The word ``from'' probably should not appear.
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(9) The order shall provide that the Board, with the approval of
the Secretary, may invest, pending disbursement, funds collected
through assessments only in obligations of the United States or any
agency thereof, in general 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 collected 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 amendments 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 importer of cattle,
beef, or beef products maintain and make available for inspection
such books and records as may be required by the order and file
reports at the time, in the manner, and having the content
prescribed by the order. Such information shall be made available 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 authorize the use of
information regarding persons 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 persons 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 violating the order, together with a
statement of the particular provisions of the order violated by
the person.
No information obtained under the authority 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 enforcement act necessary for the implementation of
this chapter. Any person violating the provisions of this paragraph
shall be subject to a fine of not more than $1,000, or to
imprisonment 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.
(12) The order shall contain terms and conditions, not
inconsistent with the provisions of this chapter, as necessary to
effectuate the provisions of the order.
(Pub. L. 94-294, Sec. 5, May 28, 1976, 90 Stat. 530; Pub. L. 99-198,
title XVI, Sec. 1601(b), Dec. 23, 1985, 99 Stat. 1599.)
Amendments
1985--Pub. L. 99-198 amended section generally, substituting
provisions relating to required terms in orders for provisions relating
to notice and hearing upon proposed orders.
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.
Section Referred to in Other Sections
This section is referred to in sections 2902, 2905, 2907 of this
title.
