§ 6304. — 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: 7USC6304]
TITLE 7--AGRICULTURE
CHAPTER 92--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
Sec. 6304. Required terms in orders
(a) In general
Any order issued under this chapter shall contain the terms and
conditions specified in this section.
(b) Establishment and membership of United Soybean Board
(1) In general
The order shall provide for the establishment of, and
appointment of members to, a United Soybean Board to administer the
order. Members of the Board shall be soybean producers appointed by
the Secretary, on a geographic basis, from State or combined units,
as provided in this subsection. The cumulative number of seats on
the Board shall be the total number of seats to which all the units
are entitled.
(2) Seats
The Secretary shall establish State units and combined units and
seats on the Board for such units, as follows:
(A) State units
Except as provided in subparagraph (B), each State shall be
considered as a unit.
(B) Combined units
A State in which average annual soybean production is less
than 3,000,000 bushels shall be grouped with other States into a
combined unit. To the extent practicable, each State with
average annual soybean production of less than 3,000,000 bushels
shall be grouped with other States with average annual soybean
production of less than 3,000,000 bushels into a combined unit,
in a manner prescribed in the order, and each combined unit
shall consist of geographically contiguous States. To the extent
practicable, each combined unit shall have an average annual
production of soybeans of at least 3,000,000 bushels.
(C) Number of seats per unit
Subject to subparagraph (F), each unit, as established under
subparagraph (A) or (B)--
(i) if its average annual soybean production is less
than 15,000,000 bushels, shall be entitled to one seat on
the Board;
(ii) if its average annual soybean production is
15,000,000 bushels or more but less than 70,000,000 bushels,
shall be entitled to 2 seats on the Board;
(iii) if its average annual soybean production is
70,000,000 bushels or more but less than 200,000,000
bushels, shall be entitled to 3 seats on the Board; and
(iv) if its average annual soybean production is
200,000,000 bushels or more, shall be entitled to 4 seats on
the Board.
(D) Determination of average annual soybean production
For purposes of subparagraphs (A), (B), (C), and (F), the
Secretary shall determine average annual soybean production
applicable to a crop year by using the average of the 5 previous
crops of soybeans, excluding the crop in which production was
the highest and the crop in which production was the lowest.
(E) Reapportionment of seats
At the end of each 3 year period beginning with the 3 year
period starting on the effective date of the order, the
Secretary, if necessary, shall adjust any unit to conform with
subparagraphs (A) and (B). If the Secretary makes such an
adjustment, the Secretary shall reapportion the seats on the
Board to conform with subparagraph (C) and any modifications
made under subparagraph (F). If payment of refunds following the
initial referendum conducted under section 6305(a) of this title
is authorized by producers, in making such adjustments, the
Secretary shall exclude, from each State's annual soybean
production, those bushels of soybeans on which such refunds are
paid.
(F) Adjustment of levels of production
At the end of each 3 year period beginning with the 3 year
period starting on the effective date of the order, the Board
may recommend to the Secretary, to the extent it determines
appropriate, changes in the levels of production used in
subparagraphs (A), (B), and (C) to determine per-unit
representation on the Board. The Secretary may amend the order
to make such changes in levels of production used to determine
per-unit representation. Any such amendment to the order shall
not be subject to a referendum of producers. A unit may not, as
a result of any modification under this subparagraph, lose Board
seats to which it is entitled at the time the order is initially
issued unless its average annual production, as determined under
subparagraph (D), declines below the levels required for
representation, as specified in subparagraphs (A), (B), and (C).
(3) Nominations
(A) In general
The Secretary shall appoint soybean producers to seats
established under paragraph (2) from nominations submitted by
each unit. Each unit shall submit to the Secretary at least two
nominations for each appointment to the Board to which the unit
is entitled, as determined under paragraph (2).
(B) Method for obtaining nominations
(i) Initially-established Board
(I) State units
The Secretary shall solicit nominations for each
seat on the initially-established Board to which a State
unit is entitled from the State soybean board in the
State that submits satisfactory evidence to the
Secretary that such board meets the criteria of
subparagraph (A) or (B) of section 6302(14) of this
title. If no such organization exists in the unit, the
Secretary shall solicit nominations for appointments in
such manner as the Secretary determines appropriate.
(II) Combined units
The Secretary shall solicit nominations for each
seat on the initially-established Board to which a
combined unit is entitled in such manner as the
Secretary determines appropriate, taking into
consideration the recommendations of any State soybean
board operating in the unit that submits to the
Secretary satisfactory evidence that such board meets
the criteria described in subparagraph (A) or (B) of
section 6302(14) of this title.
(ii) Subsequent appointment
(I) State units
Nominations for each subsequent appointment to a
seat on the Board to which a State unit is entitled
shall be made by the qualified State soybean board in
the unit. If no such organization exists in the unit,
the Secretary shall solicit nominations for such
appointment in such manner as the Secretary determines
appropriate.
(II) Combined units
The Secretary shall solicit nominations for each
subsequent appointment to the Board to which a combined
unit is entitled in such manner as the Secretary
determines appropriate, taking into consideration the
recommendations of any qualified State soybean board
operating in the unit.
(iii) Rejection
The Secretary may reject any nomination submitted by a
unit under this paragraph. If there are insufficient
nominations from which to appoint members to the Board as a
result of the Secretary rejecting the nominations submitted
by a unit, the unit shall submit additional nominations, as
provided in this paragraph.
(4) Terms
Each appointment to the Board shall be for a term of 3 years,
except that appointments to the initially-established Board shall be
proportionately for 1-year, 2-year, and 3-year terms. No person may
serve more than three consecutive 3-year terms.
(5) Compensation
Board members shall serve without compensation, but shall be
reimbursed for their reasonable expenses incurred in performing
their duties as members of the Board.
(6) Temporary appointments
(A) Appointment
Notwithstanding paragraphs (1) through (5), the Secretary,
under procedures established by the Secretary, shall appoint to
the initially-established Board up to three temporary members to
serve in addition to the members appointed as otherwise provided
in this subsection, as the Secretary determines appropriate for
transition purposes under the criteria set out in subparagraph
(B). Each such temporary member shall be appointed for a single
term not to exceed 3 years.
(B) Representation of certain States
The Secretary shall make temporary appointments to the
initially-established Board to ensure, to the extent
practicable, that each State with a State soybean board that,
prior to November 28, 1990, was contributing State soybean
promotion and research assessment funds to national soybean
promotion and research efforts has representation on the
initially-established Board that reflects the relative
contributions of such State to the national soybean promotion
and research effort.
(7) Meetings
The order shall provide for at least one meeting of the Board
annually and specify the circumstances under which additional
special meetings of the Board may be held.
(c) Powers and duties of Board
The order shall define the powers and duties of the Board and shall
include the power and duty--
(1) to administer the order in accordance with the terms and
provisions of the order;
(2) to make regulations to effectuate the terms and provisions
of the order;
(3) if the Board exercises its authority to establish the
Committee described in subsection (g) of this section--
(A) to elect members of the Board to serve on the Committee;
and
(B) if the Board assigns to the Committee the power to
develop and submit budgets as provided for in subsection (h)(1)
of this section, to approve, modify, or reject budgets submitted
by the Committee;
(4) to submit budgets to the Secretary for the approval or
disapproval of the Secretary;
(5) to contract with appropriate persons to implement plans or
projects;
(6) to contract with qualified State soybean boards to implement
programs in their States;
(7) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(8) to recommend to the Secretary amendments to the order;
(9) to provide the Secretary with prior notice of meetings of
the Board and meetings of committees of the Board to permit the
Secretary, or a designated representative, to attend such meetings;
and
(10) to provide not less than annually a report to producers
accounting for funds and describing programs implemented, and such
reports shall be made available to the public on request.
(d) Board voting procedures
(1) In general
The order shall establish procedures for the conduct of voting
by the Board, as provided in this subsection. On or after the end of
the 3-year period beginning on the effective date of the order, the
Board may recommend to the Secretary changes in the voting
procedures of the Board and the Secretary may amend the order to
make such changes. Such changes shall not be subject to a referendum
of producers.
(2) Number of votes per member
Each member of the Board shall be entitled, in any vote
conducted by the Board, to cast the number of votes determined under
the following rules:
(A) In general
Each member shall be entitled to cast one vote unless a roll
call vote is conducted. On a roll call vote, each member shall
be entitled to cast such additional votes as are assigned to the
member under subparagraph (B).
(B) Additional votes
The additional votes that each member is assigned for roll
call votes shall be computed as follows:
(i) Assessment level
Except as provided in clause (ii), each unit shall be
allotted one vote for each percent, or portion of a percent,
of the total amount of assessments remitted to the Board
that was remitted from the unit (net of any refunds made
under subsection (l)(2) of this section), on the average,
during each of the 3 previous fiscal years of the Board.
(ii) First three fiscal years
(I) First fiscal year
During the first fiscal year of the Board, each unit
shall be allotted one vote for each percent, or portion
of a percent, of the total production of soybeans in the
United States that was produced in the unit, on the
average, during each of the 3 immediately preceding crop
years.
(II) Second and third fiscal years
The order shall provide appropriate adjustments of
the procedure for the allotment of votes under clause
(i) to apply to allotments of votes during the second
and third fiscal years of the Board.
(iii) Division of votes within units
A unit's total votes under clause (i) or (ii) shall be
divided equally among all the members present and voting
representing that unit. The procedures established by the
order shall provide for the equitable disposition of
fractional votes assigned to a member under such division of
a unit's vote.
(3) Motions
(A) In general
Except as provided in subparagraph (B), a motion shall carry
if approved by a simple majority of members of the Board casting
votes.
(B) Roll call votes
Any member of the Board may call for a roll call vote on any
motion. Except as otherwise provided in the bylaws adopted by
the Board, whenever a roll call vote is conducted, the motion
shall carry only if it is approved by a simple majority of all
votes cast and a simple majority of all units voting (with the
vote of each unit determined by a simple majority of all votes
cast by members in that unit).
(4) Committee votes
In any vote conducted by a committee of the Board, each member
of the committee shall have one vote.
(5) Proxies
A member may not cast votes by proxy.
(e) Budgets
(1) In general
The order shall provide that the Board shall develop budgets on
a fiscal year basis of anticipated expenses and disbursements under
the order, including probable costs of administration and promotion,
research, consumer information, and industry information projects.
The Board shall submit such budgets or any substantial modification
thereof to the Secretary for the Secretary's approval.
(2) Limitation
No expenditure of funds may be made by the Board unless such
expenditure is authorized under a budget or modification approved by
the Secretary.
(f) Plans and projects
The order shall provide that the Board shall review or, on its own
initiative, develop plans or projects of promotion, research, consumer
information, and industry information, to be paid for with funds
received by the Board. Such plans or projects shall not become effective
until approved by the Secretary.
(g) Soybean Program Coordinating Committee
(1) Establishment
The order may authorize the Board to establish a Soybean Program
Coordinating Committee to assist in the administration of the order,
as provided in this subsection.
(2) Membership
(A) Composition
The Committee shall be composed of members such that--
(i) not less than two-thirds of the Committee shall be
members of the Board, including--
(I) the Chairperson and Treasurer of the Board; and
(II) additional members of the Board elected by the
Board; and
(ii) not more than one-third of the Committee shall be
producers elected by the national, nonprofit soybean
producer-governed organization that conducts activities on
behalf of State soybean boards and that, on November 28,
1990, conducts activities to promote soybeans and soybean
products as a cooperator with the Foreign Agricultural
Service of the Department.
(B) Certification
To serve on the Committee, each producer elected by the
national, nonprofit soybean producer-governed organization shall
be certified by the Secretary as a producer who is duly elected
by such organization as a representative to the Committee.
(3) Terms
Terms of appointment to the Committee shall be for 1 year. No
person may serve on the Committee for more than 6 consecutive terms.
(4) Compensation
Committee members shall serve without compensation, but shall be
reimbursed for their reasonable expenses incurred in performing
duties for the Committee.
(5) Chairperson
The Chairperson of the Board shall serve as Chairperson of the
Committee.
(6) Quorum
A quorum of the Committee shall consist of the number of members
of the Committee equal to three-fourths of the total membership of
the Committee.
(h) Powers and duties of Committee
The order shall define the powers and duties that the Board may
assign to the Committee, which may include the following:
(1) Budgets
The Board may assign to the Committee the power to develop and
submit to the Board, for approval, budgets on a fiscal year basis,
as provided for in subsection (e) of this section. The Board shall
review and approve, reject, modify, or substitute a budget proposed
by the Committee, and submit budgets to the Secretary for the
Secretary's approval under subsection (e) of this section.
(2) Plans and projects
The Board may assign to the Committee the power to review, or on
its own initiative develop, plans or projects for promotion,
research, consumer information, and industry information activities,
to be paid for with funds received by the Board as provided for in
subsection (f) of this section. Each such plan or project shall be
presented to the Board for approval.
(3) Voting
A recommendation to be presented to the Board relating to
proposed budgets or proposed plans and projects shall require the
concurring vote of at least two-thirds of the members present at a
meeting of the Committee.
(i) Administration
(1) Expenses
The order shall provide that the Board shall be responsible for
all expenses of the Board.
(2) Staff
(A) In general
The order shall provide that the Board may establish an
administrative staff or facilities of its own or contract for
the use of the staff and facilities of national, nonprofit,
producer-governed organizations that represent producers of
soybeans.
(B) Limitation on salaries
If the Board establishes an administrative staff of its own,
the Board is authorized to expend for administrative staff
salaries and benefits an amount not to exceed one percent of the
projected level of assessments to be collected by the Board, net
of any refunds to be made under subsection (l)(2) of this
section, for that fiscal year.
(C) Reimbursement of organization
If the staff of national, nonprofit, producer-governed
organizations that represent producers of soybeans are used by
the Board, the staff of such organizations shall not receive
compensation directly from the Board, but such organizations
shall be reimbursed for the reasonable expenses of their staffs,
including salaries, incurred in performing staff duties on
behalf of, and authorized by, the Board.
(3) Limitation on administrative costs
The order shall provide that costs incurred by the Board in
administering the order (including the cost of staff but not
including administrative costs incurred by the Secretary) during any
fiscal year shall not exceed 5 percent of the projected level of
assessments to be collected by the Board, net of any refunds to be
made under subsection (l)(2) of this section, for that fiscal year.
(j) Contracts and agreements
(1) Authority
To ensure coordination and efficient use of funds, the order
shall provide that the Board may enter into contracts or agreements
for the implementation and carrying out of the activities authorized
by this chapter with national, nonprofit, producer-governed
organizations that represent producers of soybeans, and for the
payment thereof with funds received by the Board under the order.
(2) Coordination
To enhance coordination, the Board, when entering into contracts
or agreements for the implementation and carrying out of activities
authorized by this chapter, shall ensure that all plans or projects
implemented for consumer information, industry information,
promotion, or research are each implemented by a single entity.
There shall not be in force, at any one time, more than one contract
or agreement for implementation of plans or projects for consumer
information, for industry information, for promotion, or for
research, except that, upon approval of the Secretary, the Board may
contract with qualified State soybean boards to implement plans or
projects within their respective States.
(3) Terms
Any contract or agreement entered into under this subsection
shall provide that--
(A) the contracting party shall develop and submit to the
Board a plan or project together with a budget or budgets that
shall show estimated costs to be incurred for such plan or
project;
(B) the plan or project shall not become effective until it
has been approved by the Secretary; and
(C) the contracting party shall keep accurate records of all
of its transactions, account for funds received and expended,
including staff time, salaries, and expenses expended on behalf
of Board activities, make periodic reports to the Board of
activities conducted, and make such other reports as the Board
or the Secretary may require.
(4) Communications to producers
The order may provide that--
(A) the Board may enter into contracts or agreements with
qualified State soybean boards that apply therefor and agree to
the terms thereof, for the implementation of plans or projects
to coordinate and facilitate communications to producers
regarding the conduct of activities under the order and for the
payment of the costs of the plans or projects with funds
received by the Board under the order; and
(B) to facilitate the funding of plans or projects described
in subparagraph (A), if the order does not authorize the payment
of refunds, the Board shall allocate for such funding each year
an amount not less than the cumulative amount of all producer
contributions to qualified State soybean boards during the
previous year that the State boards were unable to retain, and
forwarded to the Board, because producers received refunds on
such State contributions, as determined by the Board based on
information submitted by the qualified State soybean boards.
(5) Apportionment of funds to qualified State soybean boards
(A) In general
In using the funds allocated each year under paragraph
(4)(B) for payment of the costs of contracts or agreements
described in paragraph (4)(A), subject to subparagraph (B), the
Board shall apportion such allocated funds among States so that
each qualified State soybean board receives an amount equal to
the amount of such allocated funds attributable to refunds in
the State during the previous year, as determined by the Board
based on information submitted by the qualified State soybean
boards.
(B) Exception
The Board shall not be required to apportion funds to a
qualified State soybean board, as provided in subparagraph (A),
if--
(i) the qualified State soybean board has not entered
into a contract or agreement with the Board for the
implementation of plans or projects described in paragraph
(4)(A); or
(ii) the amount to be apportioned to the qualified State
soybean board is less than the cost to the Board of
overseeing the use of such apportionment during the year
involved, and the contract or agreement shall so provide.
(k) Books and records of Board
The order shall require the Board to--
(1) maintain such books and records, which shall be available to
the Secretary for inspection and audit, as the Secretary may
prescribe;
(2) prepare and submit to the Secretary, from time to time, such
reports as the Secretary may prescribe; and
(3) account for the receipt and disbursement of all funds
entrusted to the Board.
The Board shall cause its books and records to be audited by an
independent auditor at the end of each fiscal year and a report of such
audit to be submitted to the Secretary. The Secretary shall make such
report available to the public upon request.
(l) Assessments
(1) In general
(A) First purchasers
(i) Collection
The order shall provide that each first purchaser of
soybeans from a producer shall collect, in the manner
prescribed by the order, an assessment from the producer and
remit the assessment to the Board. The Board shall use
qualified State soybean boards to collect such assessments
in States in which such boards operate.
(ii) Rate
The rate of assessment prescribed by the order shall be
one-half of 1 percent of the net market price of soybeans
sold by the producer to the first purchaser.
(iii) One assessment
No more than one assessment shall be made on any
soybeans.
(B) Direct processing
The order shall provide that any person processing soybeans
of that person's own production and marketing such soybeans or
soybean products made from such soybeans shall remit to the
Board or the qualified State soybean board, in the manner
prescribed by the order, an assessment established at a rate
equivalent to the rate provided for in subparagraph (A)(ii).
(2) Refunds
(A) Refunds prior to initial referendum
(i) In general
The order shall provide that, during the period prior to
the approval of the continuation of the initial order in the
referendum provided for in section 6305(a) of this title, as
determined by the Secretary, each producer shall have the
right to demand and receive from the Board a refund of any
assessment collected from such producer if--
(I) such producer is responsible for paying the
assessment; and
(II) such producer does not support the programs,
projects, or activities implemented under the order.
(ii) By Board
During the period referred to in clause (i), refunds
shall be provided equally from the Board and, where
applicable, the qualified State soybean board, as determined
by the Secretary.
(B) Administration
Subject to subparagraph (C)(i), any demand by a producer for
a refund of an assessment under this paragraph shall be made in
accordance with regulations, on a form, and within the time
period (not to exceed 90 days) prescribed by the Board.
(C) Submission of refund demands
(i) In general
In each State in which a qualified State soybean board
collects assessments, as provided in paragraph (1)(A)(i),
producers shall submit demands for refunds of assessments to
the qualified State soybean board. Such board shall provide
notice to producers, in a manner prescribed by the Board, of
their right to such refunds, and shall process such
submissions under procedures established by State law
applicable to refunds of assessments on soybeans, except
that if no refunds are allowed under State law, such
submissions shall be processed under procedures established
under this paragraph.
(ii) No qualified State soybean board
In each State in which there is no qualified State
soybean board, producers shall submit demands for refunds of
assessments directly to the Board.
(D) Time limit for making refund
Subject to subparagraph (C)(i), each refund to a producer of
an assessment under this paragraph shall be made as soon as
practicable, but in no event more than 60 days, after submission
of proof satisfactory to the qualified State soybean board or
the Board that the producer paid the assessment for which refund
is demanded.
(E) Order not favored
If the Secretary determines that producers do not favor the
continuation of the order in the referendum provided for in
section 6305(a) of this title, refunds shall be made under this
paragraph on collected assessments until such collections are
terminated, as provided in section 6305(a) of this title.
(F) Refunds after initial referendum
(i) In general
The order shall contain provisions relating to refunds
after the approval of the order in the initial referendum
under section 6305(a) of this title as required in this
subparagraph.
(ii) Availability
Effective for the period beginning on the date the
Secretary determines the result of the initial referendum
under section 6305(a) of this title and ending on a date
(not later than 18 months thereafter) established by the
Secretary, the qualified State soybean board and, where no
qualified State soybean board exists, the Board shall make
refunds available to soybean producers at the end of the
fiscal year from escrowed funds, as provided for in clause
(vii). Such refunds shall be made available, under the
procedures specified in subparagraphs (A) through (D) to the
extent not inconsistent with this subparagraph, to producers
who have requested refunds during such period.
(iii) Poll
Not later than the end of the period provided for in
clause (ii), the Secretary shall conduct a poll of soybean
producers, using the procedures provided for in section
6305(b)(3) of this title, to determine if producers support
the conduct of a referendum on the continuance of the
payment of refunds under the order.
(iv) Referendum
If the Secretary determines, based on the poll conducted
under clause (iii), that the conduct of a referendum is
supported by at least 20 percent of the producers (not in
excess of one-fifth of which may be producers in any one
State) who, during a representative period, have been
engaged in the production of soybeans, the Secretary shall
conduct a referendum among all such producers for the
purpose of determining whether such producers favor the
continuation of the payment of refunds under the order. Such
referendum shall be conducted, under the procedures provided
for in section 6305 of this title, not later than 1 year
after the Secretary determines, based on the poll, that the
referendum is required.
(v) Continued refunds
If the Secretary conducts a referendum under clause
(iv), the qualified State soybean board and, where no
qualified State soybean board exists, the Board shall
continue to make refunds available to producers as provided
for in clause (ii) during the period prior to the conduct of
the referendum, which shall be payable at the end of the
period from the escrowed funds, as provided in clause (vii).
(vi) Continuation or cessation of refunds
If the Secretary determines, in the referendum conducted
under clause (iv), that continuation of the payment of
refunds is favored by a majority of the producers voting in
such referendum, the qualified State soybean board and,
where no qualified State soybean board exists, the Board
shall continue to make refunds available to producers as
provided for in clause (ii) for each 1-year period that
follows until such time as soybean producers approve an
amendment to the order to eliminate such refunds. Such
refunds shall be payable at the end of each such 1-year
period from escrowed funds, as provided in clause (vii). If
the Secretary determines in the referendum that continuation
of such refunds is not favored by a majority of producers
voting in the referendum, the right to such refunds shall
cease immediately.
(vii) Escrow accounts
(I) Establishment
The qualified State soybean board and, for producers
in States where no qualified State soybean board exists,
the Board shall establish escrow accounts to be used to
pay refunds under clause (ii) and, if necessary, clauses
(v) and (vi).
(II) Separate accounts
The qualified State soybean board and, where no
qualified State soybean board exists, the Board shall
establish separate escrow accounts for each State from
which producer assessments are collected for the purpose
of making refunds under clauses (ii), (v), and (vi),
respectively.
(III) Deposits
The qualified State soybean board and, where no
qualified State soybean board exists, the Board shall
deposit into its escrow account for refunds under clause
(ii), (v), or (vi), as appropriate, 10 percent of the
total assessment collected by the qualified State
soybean board and, where no qualified State soybean
board exists, the Board (including the assessment
provided under paragraph (2) and contributions by
producers to qualified State soybean boards under
paragraph (4)), during the time period involved.
(IV) Refunds made from escrow account
Refunds requested by producers from a State under
clause (ii) (or if refunds are available under clause
(v) or (vi)) during the time period involved shall be
made from the escrow account that is applicable to that
clause for such State.
(V) Proration
If the funds deposited in a State account
established under subclause (I) for purposes described
under clauses (ii), (v), and (vi) are not sufficient to
honor all requests for refunds made by producers from
that State during the time period involved, the
qualified State soybean board and, where no qualified
State soybean board exists, the Board shall prorate the
amount of such refunds from the State's account among
all producers from that State that request refunds.
(VI) Surplus funds
Any funds not refunded to producers in a State under
this clause shall be divided equally between the Board
and the qualified State soybean board of such State.
Such funds shall be used to carry out programs under
this chapter.
(VII) Refund period
In applying this clause to refunds under clause
(vi), each annual refund period shall be treated
separately.
(3) Use
The assessments (net of any refunds under paragraph (2)) shall
be used for--
(A) payment of the expenses incurred in implementation and
administration of the order;
(B) the establishment of a reasonable reserve; and
(C) reimbursement to the Secretary of administrative costs
incurred by the Secretary to implement and administer the order,
other than one-half of the cost incurred for the referendum
conducted under paragraph (2)(F).
(4) Credit for contributions to qualified State soybean
boards
A producer who can establish that such producer is contributing
to a qualified State soybean board shall receive credit, in
determining the assessment due to the Board from such producer, for
contributions to the qualified State soybean board of up to one-
quarter of 1 percent of the net market price of soybeans or the
equivalent thereof. For purposes of this chapter, there shall be
only one qualified State soybean board in each State. A producer may
receive a credit under this paragraph only if the contribution is to
the qualified State soybean board in the State in which the soybeans
are produced, except that the Board, with the approval of the
Secretary, may authorize exceptions to such State-of-origin rule as
are appropriate to ensure effective coordination of collection
procedures among States.
(5) Single process of assessment
The procedures in the order for the collection of assessments
shall ensure, to the extent practicable, that such soybeans are
subject to a single process of assessment under the order.
(m) Credit for certain costs to States
The order shall provide that the Board may provide a credit to each
qualified State soybean board of an amount not to exceed one-half of any
fees paid to State governmental agencies or first purchasers for
collection of the assessments if the payment of such fees by the
qualified State soybean board is required by State law enacted prior to
November 28, 1990, except that the Board may not provide a credit to any
qualified State soybean board of an amount that exceeds 2.5 percent of
the amount of assessments collected and remitted to the Board under
subsection (l) of this section.
(n) Minimum level of assessments to States
(1) Pre-referendum period
The order shall contain provisions to ensure that, during the
period prior to the conduct of the referendum provided for in
section 6305(a) of this title, each qualified State soybean board
receives annually an amount of funds equal to the average amount
that the State board collected from assessments during each of the
State board's fiscal years 1984 through 1988 (excluding the year in
which such collections were the highest and the year in which such
collections were the lowest), as determined by the Secretary and
subject to paragraph (3).
(2) Post-referendum period
The order shall provide, effective after the conduct of the
referendum provided for in section 6305(a) of this title, subject to
paragraph (3), that the Board annually shall provide a credit to
each qualified State soybean board of an amount by which--
(A) the amount equal to 1 cent times the average number of
bushels of soybeans produced in the State during each of the
preceding 5 years (excluding the year in which the production is
the highest and the year in which the production is the lowest);
exceeds
(B) the total amount collected by the qualified State
soybean board from assessments on producers minus the amount of
assessments remitted to the Board during such year under
subsection (l) of this section.
(3) Limitation
The total amount of credits under paragraph (1) or (2) and
assessments retained by the qualified State soybean board for a year
may not exceed the total amount of assessments collected in that
State under subsection (l) of this section (net of any refunds made
under paragraph (2) of subsection (l) of this section) in that year.
(o) Investment of funds
(1) In general
The order shall provide that the Board, with the approval of the
Secretary, may invest assessment funds collected by the Board under
the order, pending their disbursement, only in--
(A) obligations of the United States or any agency thereof;
(B) general obligations of any State or any political
subdivision thereof;
(C) any interest-bearing account or certificate of deposit
of a bank that is a member of the Federal Reserve System; or
(D) obligations fully guaranteed as to principal and
interest by the United States.
(2) Income
Income from any such investment may be used for any purpose for
which the invested funds may be used.
(p) Prohibition on use of funds to influence governmental action
(1) In general
Except as otherwise provided in paragraph (2), the order shall
prohibit any funds collected by the Board under the order from being
used in any manner for the purpose of influencing legislation or
governmental action or policy.
(2) Exceptions
Paragraph (1) shall not apply to--
(A) the development and recommendation of amendments to the
order;
(B) the communication to appropriate government officials of
information relating to the conduct, implementation, or results
of promotion, research, consumer information, or industry
information activities under the order; or
(C) any action designed to market soybeans or soybean
products directly to a foreign government or political
subdivision thereof.
(q) Books and records of first purchasers and certain producers
(1) Recordkeeping
(A) In general
The order shall require that each first purchaser of
soybeans and any person processing soybeans of that person's own
production maintain and make available for inspection by the
Board or the Secretary 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. The order shall
exempt small producers processing soybeans of their own
production from such recordkeeping and reporting requirements if
they are not required to pay assessments under the order.
(B) ``Small producer'' defined
The order shall define the term ``small producer'' as such
term is used in subparagraph (A).
(2) Use of information
(A) In general
Information maintained under paragraph (1) shall be made
available to the Secretary as is appropriate for the
administration or enforcement of this chapter, or any order or
regulation issued under this chapter.
(B) Other information
The Secretary shall authorize the use under this chapter of
information regarding first purchasers that is accumulated under
a law or regulation other than this chapter or regulations under
this chapter.
(3) Confidentiality
(A) In general
Except as otherwise provided in this chapter, commercial or
financial information that is obtained under paragraph (1) or
(2) and that is privileged or confidential shall be kept
confidential by all officers and employees of the Department,
members of the Board, and agents of the Board.
(B) Permitted uses
Information obtained under the authority of this chapter
shall be made available to any agency or officer of the Federal
Government for--
(i) the implementation of this chapter;
(ii) any investigatory or enforcement action necessary
for the implementation of this chapter; or
(iii) any civil or criminal law enforcement activity if
the activity is authorized by law.
(C) Other exceptions
Nothing in subparagraph (A) may be deemed to prohibit--
(i) the issuance of general statements, based on the
reports, of the number of persons subject to an order or
statistical data collected therefrom, which statements do
not identify the information furnished by any person; or
(ii) the publication, by direction of the Secretary, of
the name of any person violating any order, together with a
statement of the particular provisions of the order violated
by such person.
(4) Penalty
Any person who willfully violates the provisions of this
subsection, upon conviction, 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 a member or an agent of the Board or an officer or employee
of the Department, shall be removed from office.
(r) Incidental terms and conditions
The order shall provide terms and conditions, not inconsistent with
the provisions of this chapter, as necessary to effectuate the
provisions of the order, including provisions for the assessment of a
penalty for each late payment of assessments under subsection (l) of
this section.
(Pub. L. 101-624, title XIX, Sec. 1969, Nov. 28, 1990, 104 Stat. 3884;
Pub. L. 102-237, title VIII, Sec. 806(1), Dec. 13, 1991, 105 Stat.
1883.)
Amendments
1991--Subsec. (g)(2)(A)(ii). Pub. L. 102-237, Sec. 806(1)(A),
substituted ``Agricultural'' for ``Argicultural''.
Subsec. (l)(2)(F)(vii)(V). Pub. L. 102-237, Sec. 806(1)(B),
substituted ``that request'' for ``that requests''.
Subsec. (q)(4). Pub. L. 102-237, Sec. 806(1)(C), inserted a comma
after ``and'' and struck out semicolon after ``Board''.
Section Referred to in Other Sections
This section is referred to in sections 6302, 6309 of this title.
