§ 4809. — Assessments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC4809]
TITLE 7--AGRICULTURE
CHAPTER 79--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION
Sec. 4809. Assessments
(a) Collection and remission to Board; persons required to pay
(1) The order shall provide that, not later than 30 days after the
effective date of the order under section 4805(c) of this title an
assessment shall be paid, in the manner prescribed in the order. Upon
the appointment of the Board, the assessments held in escrow shall be
distributed to the Board. Except as provided in paragraph (3),
assessments shall be payable by--
(A) each producer for each porcine animal described in
subparagraph (A) or (C) of section 4802(8) of this title produced in
the United States that is sold or slaughtered for sale;
(B) each producer for each porcine animal described in
subsection \1\ 4802(8)(B) of this title that is sold; and
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(C) each importer for each porcine animal, pork, or pork product
that is imported into the United States.
(2) Such assessment shall be collected and remitted to the Board
once it is appointed pursuant to section 4808 of this title, but, until
that time, to the Secretary, who shall promptly proceed to distribute
the funds received by him in accordance with the provisions of
subsection (c) of this section, except that the Secretary shall retain
the funds to be received by the Board until such time as the Board is
appointed pursuant to section 4808 of this title, by--
(A) in the case of subparagraph (A) of paragraph (1), the
purchaser of the porcine animal referred to in such subparagraph;
(B) in the case of subparagraph (B) of paragraph (1), the
producer of the porcine animal referred to in such subparagraph; and
(C) in the case of subparagraph (C) of paragraph (1), the
importer referred to in such subparagraph.
(3) A person is not required to pay an assessment for a porcine
animal, pork, or pork product under paragraph (1) if such person proves
to the Board that an assessment was paid previously under such paragraph
by a person for such porcine animal (of the same category described in
subparagraph (A), (B), or (C) of section 4802(8) of this title), pork,
or pork product.
(b) Rate of assessment; increase; waiver of collection of assessment
(1) Except as provided in paragraph (2), the rate of assessment
prescribed by the initial order shall be the lesser of--
(A) 0.25 percent of the market value of the porcine animal,
pork, or pork product sold or imported; or
(B) an amount established by the Secretary based on a
recommendation of the Delegate Body.
(2) Except as provided in paragraph (3), the rate of assessment in
the initial order may be increased by not more than 0.1 percent per year
on recommendation of the Delegate Body.
(3) The rate of assessment may not exceed 0.50 percent of such
market value unless--
(A) after the initial referendum required under section 4811(a)
of this title, the Delegate Body recommends an increase in such rate
above 0.50 percent; and
(B) such increase is approved in a referendum conducted under
section 4811(b) of this title.
(4)(A) Pork or pork products imported into the United States shall
be assessed based on the equivalent value of the live porcine animal
from which such pork or pork products were produced, as determined by
the Secretary.
(B) The Secretary may waive the collection of assessments on a type
of such imported pork or pork products if the Secretary determines that
such collection is not practicable.
(c) Distribution and use
Funds collected by the Board from assessments collected under this
section shall be distributed and used in the following manner:
(1)(A) Each State association, shall receive an amount of funds
equal to the product obtained by multiplying--
(i) the aggregate amount of assessments attributable to
porcine animals produced in such State by persons described in
subsection (a)(1)(A) and (B) of this section minus that State's
share of refunds determined pursuant to paragraph (4) by such
persons pursuant to section 4813 of this title; and
(ii) a percentage applicable to such State association
determined by the Delegate Body, but in no event less than
sixteen and one-half percent, or
(B) in the case of a State association that was conducting a
pork promotion program in the period from July 1, 1984, to June 30,
1985, if greater than (A) an amount of funds equal to the amount of
funds that would have been collected in such State pursuant to the
pork promotion program in existence in such State from July 1, 1984,
to June 30, 1985, had the porcine animals, subject to assessment and
to which no refund was received in such State in each year following
December 23, 1985, been produced from July 1, 1984, to June 30,
1985, and been subject to the rates of assessments then in effect
and the rate of return then in effect from each State to the Council
described in paragraph (2)(A), and other national entities involved
in pork promotion, research and consumer information.
(C) A State association shall use such funds and any proceeds
from the investment of such funds for financing--
(i) promotion, research, and consumer information plans and
projects, and
(ii) administrative expenses incurred in connection with
such plans and projects.
(2)(A) The National Pork Producers Council, a nonprofit
corporation of the type described in section 501(c)(3) of title 26
and incorporated in the State of Iowa, shall receive an amount of
funds equal to--
(i) 37\1/2\ percent of the aggregate amount of assessments
collected under this section throughout the United States from
the date assessment commences pursuant to subsection (a)(1) of
this section until the first day of the month following the
month in which the Board is appointed pursuant to section 4808
of this title.\2\
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(ii) 35 percent thereafter until the referendum is conducted
pursuant to section 4811 of this title,
(iii) 25 percent until twelve months after the referendum is
conducted, and
(iv) no funds thereafter except in so far as it obtains such
funds from the Board pursuant to sections \3\ 4808 or 4809 of
this title, each of which amounts determined under (i), (ii),
and (iii) shall be less the Council's share of refunds
determined pursuant to paragraph (4).
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\3\ So in original. Probably should be ``section''.
(B) The Council shall use such funds and proceeds from the
investment of such funds for financing--
(i) promotion, research, and consumer information plans and
projects, and
(ii) administrative expenses of the Council.
(3)(A) The Board shall receive the amount of funds that remain
after the distribution required under paragraphs (1) and (2).
(B) The Board shall use such funds and any proceeds from the
investment of such funds pursuant to subsection (g) of this section
for--
(i) financing promotion, research, and consumer information
plans and projects in accordance with this chapter; \4\
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(ii) such expenses for the administration, maintenance, and
functioning of the Board as may be authorized by the Secretary;
(iii) accumulation of a reasonable reserve to permit an
effective promotion, research, and consumer information program
to continue in years when the amount of assessments may be
reduced; and
(iv) administrative costs incurred by the Secretary to carry
out this chapter,\4\ including any expenses incurred for the
conduct of a referendum under this chapter.\4\
(4)(A) Each State's share of refunds shall be determined by
multiplying the aggregate amount of refunds received by producers in
such State by the percentage applicable to such State pursuant to
paragraph (1)(A)(ii).
(B) The National Pork Producers Council's share of refunds shall
be determined by multiplying its applicable percent of the aggregate
amount of assessments by the product of--
(i) subtracting from the aggregate amount of refunds
received by all producers the aggregate amount of State share or
refunds in every State determined pursuant to subparagraph (A),
and
(ii) adding to that sum the aggregate amount of refunds
received by importers.
(d) Prohibited promotions
No promotion funded with assessments collected under this chapter
may make--
(1) a false or misleading claim on behalf of pork or a pork
product; or
(2) a false or misleading statement with respect to an attribute
or use of a competing product.
(e) Influencing legislation prohibited
No funds collected through assessments authorized by this section
may, in any manner, be used for the purpose of influencing legislation,
as defined in section 4911(d) and (e)(2) of title 26.
(f) Maintenance of books and records; audits
The Board shall--
(1) maintain such books and records, and prepare and submit to
the Secretary such reports from time to time, as may be required by
the Secretary for appropriate accounting of the receipt and
disbursement of funds entrusted to the Board or a State association,
as the case may be; and
(2) cause a complete audit report to be submitted to the
Secretary at the end of each fiscal year.
(g) Investment by Board of funds collected
The Board, with the approval of the Secretary, may invest funds
collected through assessments authorized under this section, pending
disbursement for a plan or project, only in--
(1) an obligation of the United States, or of a State or
political subdivision thereof;
(2) an interest-bearing account or certificate of deposit of a
bank that is a member of the Federal Reserve System; or
(3) an obligation fully guaranteed as to principal and interest
by the United States.
(Pub. L. 99-198, title XVI, Sec. 1620, Dec. 23, 1985, 99 Stat. 1614;
Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)
References in Text
This chapter, referred to in subsec. (c)(3)(B)(i), (iv), was in the
original ``this title'' and was translated as reading ``this subtitle'',
meaning subtitle B of title XVI of Pub. L. 99-198, which enacted this
chapter, as the probable intent of Congress.
Amendments
1986--Subsecs. (c)(2)(A), (e). Pub. L. 99-514 substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for
purposes of codification was translated as ``title 26'' thus requiring
no change in text.
Section Referred to in Other Sections
This section is referred to in sections 4805, 4806, 4807, 4808,
4813, 4817, 4819 of this title.
