§ 4306. — Required terms in orders.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 7USC4306]
TITLE 7--AGRICULTURE
CHAPTER 74--FLORAL RESEARCH AND CONSUMER INFORMATION
Sec. 4306. Required terms in orders
Orders issued pursuant to this chapter shall contain the following
terms and conditions and, except as provided in section 4307 of this
title, no others:
(1) Providing for the establishment and appointment by the Secretary
of a board to be named ``Floraboard'', which shall consist of not more
than seventy-five voting members, and defining its powers and duties,
which shall include only the powers to (A) administer such order in
accordance with its terms and provisions, (B) make rules and regulations
to effectuate the terms and provisions of such order, (C) receive,
investigate, and report to the Secretary complaints of violations of
such order, and (D) recommend to the Secretary amendments of such order.
The term of an appointment to the Floraboard shall be for three years
with no member serving more than two consecutive three-year terms:
Provided, That of the initial appointments, one-third shall be for a
term of one year and one-third shall be for a term of two years. The
Floraboard shall appoint from its members an executive committee,
consisting of not more than fifteen members, whose membership shall, to
the maximum extent practicable, reflect the membership composition of
the Floraboard, and whose commodity group representation shall be
proportional to that of the Floraboard. Such executive committee shall
have the authority to employ a staff and conduct routine business within
the policies determined by the Floraboard.
(2) Providing that the Floraboard shall be composed of producers and
importers appointed by the Secretary from nominations submitted by
organizations certified pursuant to section 4315 of this title or if the
Secretary determines that a substantial number of producers or importers
are not members of or their interests are not represented by any such
certified organization then from nominations made by such producers or
importers in a manner authorized by the Secretary. Certified
organizations shall submit one nomination for each position on the
Floraboard. Initially, the Floraboard shall be composed of one-third
producers and importers of cut flowers, one-third producers and
importers of potted flowering plants, and one-third producers and
importers of foliage plants. Two years after assessment of funds
commences pursuant to an order, and periodically thereafter, the
Floraboard shall adjust the commodity group representation of these
commodity groups on the basis of the amount of assessments, less
refunds, collected from each commodity group. There shall at all times
be more producers representing a particular commodity group on the
Floraboard than importers representing that commodity group. In addition
to commodity group representation, the periodic adjustment of the
membership of the Floraboard shall reflect, to the maximum extent
practicable, the proportionate share of assessments, less refunds,
collected from producers in each of several geographic areas of the
United States to be defined by the Secretary, and the proportionate
share of assessments, less refunds, collected from importers of flowers
and plants imported into the United States from each country.
(3) Providing that the Floraboard shall, subject to the provisions
of paragraph 8 of this section, develop and submit to the Secretary for
approval 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.
(4) Providing that the Floraboard shall, subject to the provisions
of paragraph 8 of this section, submit to the Secretary for 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.
(5) Providing that--
(A) For each sale of flowers and plants by a producer within the
United States, such producer shall pay an assessment to the
Floraboard based on the dollar value of such sales transaction minus
the cost of plant material. If the producer is a retailer, the
assessment will be based on the then current wholesale value of the
flowers and plants less the cost of plant material. In the case of
consignment sales, the assessment shall be paid by the producer
based on the dollar value of the sale of flowers and plants less the
sales commission, freight cost, and cost of plant material.
(B) For each sale of imported flowers and plants within the
United States by the importer of such flowers and plants, such
importer shall pay an assessment to the Floraboard based on the
dollar value of such sales transaction, without deducting the cost
of plant material. If the importer is a retailer, the assessment
will be made on the purchase price. In the case of consignment
sales, the assessment shall be paid by the importer and shall be
based on the dollar value of the sale of flowers and plants less the
sales commission and cost of transportation within the United
States.
(C) The assessments provided for in this section shall be
remitted to the Floraboard, at the time and in the manner prescribed
in the order and regulations thereunder, and shall be used for such
expenses and expenditures (including provision for a reasonable
reserve and those administrative costs incurred by the Department of
Agriculture after an order has been promulgated under this chapter)
as the Secretary finds are reasonable and likely to be incurred by
the Floraboard under the order during any period specified by the
Secretary.
(6) Providing that the initial rate of assessment, which rate shall
remain in effect for the first two years after an order is approved in a
referendum, shall not exceed one-half of 1 per centum of the value of
flowers and plants sold, as determined under the provisions of paragraph
(5) of this section: Provided, That the Floraboard may thereafter
increase or decrease the rate of assessment prescribed by the order by
no more than one-quarter of 1 per centum of the value of flowers and
plants sold per year: Provided further, That in no event shall the rate
of assessment exceed 1\1/2\ per centum of the value of flowers and
plants sold.
(7) Providing that the Floraboard shall maintain such books and
records and shall prepare and submit to the Secretary, from time to
time, such reports as the Secretary may prescribe, and providing for
appropriate accounting by the Floraboard with respect to the receipt and
disbursement of all funds entrusted to it.
(8) Providing that the Floraboard, 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
sections 4307(1) and (2) of this title and for the payment of the cost
thereof with funds collected pursuant to the order. The Floraboard may
contract with industry groups, profit or nonprofit companies, private
and State colleges and universities, and governmental groups. Any such
contract or agreement shall provide (A) that the contracting party shall
develop and submit to the Floraboard a plan or project together with
a budget or budgets which shall show estimated costs to be incurred
for such plan or project, (B) that any such plan or project shall become
effective upon the approval of the Secretary, and (C) that the
contracting party shall keep accurate records of all its transactions
and make periodic reports to the Floraboard of activities carried out
and an accounting for funds received and expended, and such other
reports as the Secretary may require.
(9) Providing that the Floraboard may convene, from time to time,
advisory panels drawn from the production, importation, wholesale, and
retail segments of the flower and plant industry to assist in the
development of marketing and research programs.
(10) Providing that no funds collected or received by the Floraboard
shall in any manner be used for the purpose of influencing governmental
policy or action, except as provided by paragraph (1)(D) of this
section.
(11) Providing that Floraboard members and members of any advisory
panels convened shall serve without compensation but shall be reimbursed
for their reasonable expenses incurred in performing their duties as
members of the Floraboard or advisory panel.
(Pub. L. 97-98, title XVII, Sec. 1707, Dec. 22, 1981, 95 Stat. 1350.)
Section Referred to in Other Sections
This section is referred to in sections 4302, 4315 of this title.
