§ 7104. — 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: 7USC7104]
TITLE 7--AGRICULTURE
CHAPTER 99--SHEEP PROMOTION, RESEARCH, AND INFORMATION
Sec. 7104. Required terms in orders
(a) In general
An order issued under this chapter shall contain the terms and
conditions specified in this section.
(b) Establishment and membership of Board
(1) In general
The order shall provide for the establishment of, and
appointment of members to, a National Sheep Promotion, Research, and
Information Board to administer the order. Members of the Board
shall be appointed by the Secretary from nominations provided in
accordance with this subsection. The cumulative number of seats on
the Board shall be 120 and shall be apportioned as follows:
(A) Producers
Producers shall be appointed to the Board to represent
States, with each State represented by the following number of
members:
Alabama............................. 1
Alaska.............................. 1
Arizona............................. 1
Arkansas............................ 1
California.......................... 5
Colorado............................ 4
Connecticut......................... 1
Delaware............................ 1
Florida............................. 1
Georgia............................. 1
Hawaii.............................. 1
Idaho............................... 2
Illinois............................ 1
Indiana............................. 1
Iowa................................ 2
Kansas.............................. 1
Kentucky............................ 1
Louisiana........................... 1
Maine............................... 1
Maryland............................ 1
Massachusetts....................... 1
Michigan............................ 1
Minnesota........................... 2
Mississippi......................... 1
Missouri............................ 1
Montana............................. 5
Nebraska............................ 1
Nevada.............................. 1
New Hampshire....................... 1
New Jersey.......................... 1
New Mexico.......................... 2
New York............................ 1
North Carolina...................... 1
North Dakota........................ 2
Ohio................................ 1
Oklahoma............................ 1
Oregon.............................. 2
Pennsylvania........................ 1
Rhode Island........................ 1
South Carolina...................... 1
South Dakota........................ 4
Tennessee........................... 1
Texas............................... 10
Utah................................ 3
Vermont............................. 1
Virginia............................ 1
Washington.......................... 1
West Virginia....................... 1
Wisconsin........................... 1
Wyoming............................. 5
(B) Feeders
The feeder sheep industry shall be represented on the Board
by 10 members.
(C) Importers
Importers shall be represented on the Board by 25 members.
(D) Alternates
The order shall provide that a unit represented by only 1
member may have an alternate member appointed to ensure
representation at meetings of the Board.
(2) Nominations
(A) Producers
The Secretary shall appoint producers to represent units
established under paragraph (1)(A) from nominations submitted by
eligible organizations certified under subsection (c)(3) of this
section. An eligible organization may submit only nominations
from the membership of the organization for the unit in which
the organization is located. To be represented on the Board,
each eligible organization shall submit to the Secretary at
least 1.5 nominations for each appointment to the Board for
which the unit is entitled to representation, as determined
under paragraph (1)(A). If a unit is entitled to 1 appointment
on the Board, the unit shall submit at least 2 nominations for
the appointment.
(B) Feeders
The Secretary shall appoint representatives of the feeder
sheep industry to seats established under paragraph (1)(B) from
nominations submitted by qualified national organizations that
represent the feeder sheep industry. To be represented on the
Board, the industry shall provide at least 1.5 nominations for
each appointment to the Board for which the feeder sheep
industry is entitled to representation, as determined under
paragraph (1)(B).
(C) Importers
The Secretary shall appoint importers to seats established
under paragraph (1)(C) from nominations submitted by qualified
organizations that represent importers, as determined by the
Secretary. To be represented on the Board, importers shall
provide at least 1.5 nominations for each appointment to the
Board for which importers are entitled to representation, as
determined under paragraph (1)(C).
(c) Method for obtaining nominations
(1) Initially established Board
(A) Producer nominations
The Secretary shall solicit nominations for each seat on the
initially established Board to which a unit is entitled to
representation from eligible organizations certified under
paragraph (3). If no such organization exists in the unit, the
Secretary shall solicit nominations for appointments in such
manner as the Secretary determines appropriate.
(B) Feeder and importer nominations
The Secretary shall solicit nominations for each seat for
which feeders or importers are entitled to representation from
organizations that represent feeders and importers,
respectively. In determining whether an organization is eligible
to submit nominations under this subparagraph, the Secretary
shall determine whether--
(i) the active membership of the organization includes a
significant number of feeders or importers in relation to
the total membership of the organization;
(ii) there is evidence of stability and permanency of
the organization; and
(iii) the organization has a primary and overriding
interest in representing the feeder or importer segment of
the sheep industry.
(2) Subsequent appointment
(A) Producer nominations
The solicitation of nominations for subsequent appointment
to the Board from eligible organizations certified under
paragraph (3) shall be initiated by the Secretary, with the
Board securing the nominations for the Secretary.
(B) Feeder and importer nominations
The solicitation of feeder and importer nominations for
seats on the Board shall be made by the Secretary in accordance
with paragraph (1)(B).
(3) Certification of organizations
(A) In general
The eligibility of any organization to represent producers,
and to participate in the making of nominations to represent
producers under this section, shall be certified by the
Secretary. The Secretary shall certify any organization that the
Secretary determines meets the eligibility criteria established
by the Secretary under this paragraph. An eligibility
determination of the Secretary under this paragraph shall be
final.
(B) Basis for certification
Certification under this paragraph shall be based, in
addition to other available information, on a factual report
submitted by the organization, that shall contain information
considered relevant and specified by the Secretary, including--
(i) the geographic territory covered by the active
membership of the organization;
(ii) the nature and size of the active membership of the
organization, including the proportion of the total number
of active producers represented by the organization;
(iii) evidence of stability and permanency of the
organization;
(iv) sources from which the operating funds of the
organization are derived;
(v) the functions of the organization; and
(vi) the ability and willingness of the organization to
further the aims and objectives of this chapter.
(C) Primary considerations
A primary consideration in determining the eligibility of an
organization under this paragraph shall be whether--
(i) the membership of the organization consists
primarily of producers who own a substantial quantity of
sheep; and
(ii) an interest of the organization is in the
production of sheep.
(d) Administration
(1) 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 2 consecutive 3-year terms, except that an elected
officer of the Board shall not be subject to this sentence while the
officer holds office.
(2) Compensation
A Board member shall serve without compensation, but shall be
reimbursed for the reasonable expenses of the member incurred in
performing the duties of the Board.
(3) Meetings
The order shall provide for at least an annual meeting of the
Board and such additional meetings of the Board as may be required.
(e) 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 elect officers of the Board, including a Chairperson,
Vice Chairperson, and Secretary;
(2) to administer the order in accordance with the terms and
provisions of the order;
(3) to recommend regulations to effectuate the terms and
provisions of the order;
(4) to elect members of the Board to serve on the Executive
Committee;
(5) to approve or reject budgets submitted by the Executive
Committee;
(6) on approval, to submit the budgets to the Secretary for the
approval or disapproval of the Secretary;
(7) to contract with entities, if necessary, to carry out plans
or projects in accordance with this chapter;
(8) to conduct programs of promotion, research, consumer
information, education, industry information, and producer
information;
(9) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(10) to recommend to the Secretary amendments to the order;
(11) to provide the Secretary with prior notice of meetings of
the Board to permit the Secretary, or a designated representative,
to attend the meetings;
(12) to provide, not less than annually, a report to producers,
feeders, and importers accounting for funds expended by the Board
and describing programs carried out under this chapter, and to make
the report available to the public on request;
(13) to establish 7 regions that, to the extent practicable,
contain geographically contiguous States and approximately equal
numbers of producers and sheep production;
(14) to employ or retain necessary staff; and
(15) to invest funds in accordance with subsection (k) of this
section.
(f) Budgets
(1) In general
The order shall provide that the Board shall review budgets
submitted by the Executive Committee, on a fiscal year basis, of
anticipated expenses and disbursements by the Board, including
probable costs of administration and promotion, research, consumer
information, education, industry information, and producer
information projects. On approval by the Board, the Board shall
submit the budget to the Secretary for the approval of the
Secretary.
(2) Limitation
No expenditure of funds may be made by the Board unless the
expenditure is authorized under a budget or budget amendment
approved by the Secretary.
(g) Executive Committee
(1) Establishment
The order shall establish an Executive Committee to administer
the terms and provisions of the order, as provided in this
subsection, under the direction of the Board and consistent with the
policies determined by the Board.
(2) Membership
The Executive Committee shall be composed of 14 members, of
which--
(A) 11 members shall be elected by the Board on an annual
basis, of which--
(i) 7 members shall represent producers, with 1 member
representing each of the regions established in the order;
(ii) 1 member shall represent feeders; and
(iii) 3 members shall represent importers; and
(B) 3 members shall be the Chairperson, Vice Chairperson,
and Secretary of the Board.
(3) Powers and duties
(A) Plans or projects
The Executive Committee shall develop plans or projects of
promotion, research, consumer information, education, industry
information, and producer information, which shall be paid for
with assessments collected by the Board. The plans or projects
shall not become effective until the plans or projects are
approved by the Secretary.
(B) Budgets
The Executive Committee shall be responsible for developing
and submitting to the Board, for the approval of the Board,
budgets, on a fiscal year basis, of the anticipated expenses and
disbursements of the Board, including probable costs of
promotion, research, consumer information, education, industry
information, and producer information projects. The Board shall
approve or disapprove a budget submitted by the Executive
Committee, and, if approved, shall submit the budget to the
Secretary for the approval of the Secretary.
(4) Terms
A term of appointment to the Executive Committee shall be for 1
year.
(5) Chairperson
The Chairperson of the Board shall serve as Chairperson of the
Executive Committee.
(6) Quorum
A quorum of the Executive Committee shall consist of 8 members.
(h) Expenses, contracts, and agreements
(1) Expenses
The order shall provide that the Board shall be responsible for
all expenses of the Board and the Executive Committee.
(2) Contracts and agreements
A contract or agreement entered into by the Board under
subsection (e)(7) of this section 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
provides estimated costs to be incurred for the plan or project;
(B) the plan or project, and the contract or agreement,
shall not become effective until the plan or project has been
approved by the Secretary; and
(C) the contracting party shall--
(i) keep accurate records of all of the transactions of
the party;
(ii) account for funds received and expended, including
staff time, salaries, and expenses expended on behalf of
Board activities;
(iii) make periodic reports to the Board of activities
conducted; and
(iv) make such other reports as the Board or the
Secretary may require.
(i) Assessments
(1) Sheep purchases
(A) In general
The order shall provide that each person making payment to a
producer or feeder for sheep purchased from the producer or
feeder shall, in the manner prescribed by the order, collect an
assessment from the producer or feeder on each sheep sold by the
producer or feeder.
(B) Processing
Any person purchasing sheep for processing shall collect the
assessment from the seller and remit the assessment to the Board
in the manner prescribed by the order.
(C) Rate
(i) In general
Except as provided in clause (ii), the rate of
assessment under this paragraph shall be 1 cent per pound of
live sheep sold.
(ii) Exception
The rate of assessment under this paragraph may be
raised or lowered not more than \15/100\ of a cent per pound
in any 1 year, as recommended by the Executive Committee and
approved by the Board and the Secretary, except that the
rate of assessment under this paragraph shall not exceed 2.5
cents per pound of live sheep sold.
(2) Wool purchases
(A) In general
The order shall provide that each person making payment to a
producer, feeder, or handler of wool for wool purchased from the
producer, feeder, or handler shall, in the manner prescribed by
the order, collect an assessment on each pound of greasy wool
sold.
(B) Processing
Any person purchasing greasy wool for processing shall
collect the assessment and remit the assessment to the Board in
the manner prescribed by the order.
(C) Rate
(i) In general
Except as provided in clause (ii), the rate of
assessment under this paragraph shall be 2 cents per pound
of greasy wool.
(ii) Exception
The rate of assessment under this paragraph may be
raised or lowered not more than \2/10\ of a cent per pound
in any 1 year, as recommended by the Executive Committee and
approved by the Board and the Secretary, except that the
rate of assessment under this paragraph shall not exceed 4
cents per pound of greasy wool.
(3) Direct processing
The order shall provide that any person processing or causing to
be processed sheep or sheep products of that person's own production
and marketing shall--
(A) pay an assessment on the sheep or sheep products at the
time of sale at a rate equivalent to the rate provided for in
paragraph (1) or (2), as appropriate; and
(B) remit the assessment to the Board in the manner
prescribed by the order.
(4) Exports
The order shall provide that any person exporting live sheep or
greasy wool shall--
(A) pay the assessment on the sheep or greasy wool at the
time of export at a rate equivalent to the rate provided for in
paragraph (1) or (2), as appropriate; and
(B) remit the assessment to the Board in the manner
prescribed by the order.
(5) Imports
(A) In general
The order shall provide that any person importing sheep or
sheep product, and any person importing wool or products
containing wool, into the United States shall pay an assessment
to the Board in the manner prescribed by the order, except that
this paragraph shall not apply to raw wool that is imported into
the United States.
(B) Collection
The Customs Service shall collect the assessment required
under this paragraph and remit the assessment to the Secretary
for disbursement to the Board.
(C) Rate for sheep and sheep products
(i) In general
Except as provided in subparagraph (B), the rate of
assessment under this paragraph for sheep and sheep products
shall be--
(I) in the case of a live sheep, 1 cent per pound;
and
(II) in the case of a sheep product, the equivalent
of 1 cent per pound of live sheep, as determined by the
Secretary in consultation with the domestic sheep
industry.
(ii) Exception
The rate of assessment under this subparagraph may be
raised or lowered not more than \15/100\ cent per pound in
any 1 year, as recommended by the Executive Committee and
approved by the Board and the Secretary, except that the
rate of assessment under this subparagraph shall not exceed
2.5 cents per pound.
(D) Rate for wool and wool products
(i) In general
Except as provided in clause (ii), the rate of
assessment under this paragraph for wool and products
containing wool, shall be 2 cents per pound of degreased
wool or the equivalent of degreased wool.
(ii) Exception
The rate of assessment under this subparagraph may be
raised or lowered not more than \2/10\ cent per pound in any
1 year, as recommended by the Executive Committee and
approved by the Board and the Secretary, except that the
rate of assessment under this subparagraph shall not exceed
4 cents per pound of degreased wool or the equivalent of
degreased wool.
(6) Qualified State sheep boards
(A) In general
Except as provided in subparagraph (B), the order shall
provide that 20 percent of the total assessments collected by
the Board on the marketing of domestic sheep and domestic sheep
products in any 1 year from a State shall be returned to the
qualified State sheep board of the State.
(B) Exception
No qualified State sheep board shall receive less than
$2,500 under subparagraph (A) in any year.
(7) De minimis imports
The Secretary may issue regulations that--
(A) exclude certain imported materials or products that
contain de minimis content levels of sheep or sheep products;
and
(B) waive the assessment due on the materials or products.
(8) Use of assessments
(A) In general
The order shall provide that assessments received by the
Board shall be used by the Board for the payment of expenses
incurred in administering the order, with authorization for a
reasonable reserve.
(B) Reimbursement of Secretary
The Secretary shall be reimbursed for costs incurred in
implementing and administering the order.
(j) Books and records of Board
(1) In general
The order shall require the Board to--
(A) maintain such books and records as the Secretary may
prescribe, which shall be available to the Secretary for
inspection and audit;
(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 the Board.
(2) Audit
The Board shall cause books and records of the Board related to
the order to be audited by an independent auditor at the end of each
fiscal year. The Board shall submit a report of the audit to the
Secretary.
(k) Investment of funds
(1) In general
The order shall provide that the Board may invest, pending
disbursement, funds the Board receives under the order, only in--
(A) obligations of the United States or any agency of the
United States;
(B) general obligations of any State or any political
subdivision of a State;
(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) Use of income
Income from any investment under paragraph (1) may be used for
any purpose for which the invested funds may be used.
(l) Prohibition on use of funds
(1) In general
Except as 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 government
action or policy.
(2) Exceptions
Paragraph (1) shall not apply to--
(A) the development and recommendation to the Secretary of
amendments to the order; or
(B) the communication to appropriate government officials,
in response to a request made by the officials, of information
relating to the conduct, implementation, or results of
promotion, research, consumer information, education, industry
information, or producer information activities under the order.
(3) False or misleading claims
A plan or project conducted under this chapter shall not make
false or misleading claims on behalf of sheep or sheep products or
against a competing product.
(m) Books and records
(1) In general
The order shall require that each person making payment to a
producer, feeder, or handler for sheep or sheep products, each
importer and exporter of sheep or sheep products, and each person
marketing sheep products of the person's own production to 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.
(2) Use of information
(A) In general
Information from the records or reports shall be made
available to the Secretary 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 persons paying producers, feeders,
importers, handlers, or processors that is accumulated under a
law or regulation other than this chapter or a regulation issued
under this chapter.
(3) Confidentiality
(A) In general
Except as otherwise provided in this chapter, all
information obtained under paragraph (1) or (2) shall be kept
confidential by all officers and employees of the Department and
of the Board.
(B) Disclosure
Information referred to in subparagraph (A) may be disclosed
only if--
(i) the Secretary considers the information relevant;
(ii) the information is revealed in a judicial
proceeding or administrative hearing brought at the
direction or on the request of the Secretary or to which the
Secretary or any officer of the Department is a party; and
(iii) the information relates to this chapter.
(C) General statements
Nothing in this paragraph prohibits--
(i) the issuance of general statements, based on the
reports, of the number of persons subject to an order or
statistical data collected from the persons, 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 and a statement
of the particular provisions of the order violated by the
person.
(D) Administration
No information obtained under this chapter may be made
available to any agency or officer of the Federal Government for
any purpose other than the implementation of this chapter or any
investigatory or enforcement action necessary for the
implementation of this chapter.
(E) Penalty
Any person who willfully violates this paragraph, on
conviction, shall be subject to a fine of not more than $1,000
or to imprisonment for not more than 1 year, or both, and if the
person is an officer or employee of the Board or the Department,
shall be removed from office.
(n) Other terms and conditions
The order shall provide such terms and conditions, not inconsistent
with this section, as are necessary to carry out the order, including
provisions for the assessment of a penalty for the late payment of an
assessment due under the order.
(Pub. L. 103-407, Sec. 5, Oct. 22, 1994, 108 Stat. 4213.)
Section Referred to in Other Sections
This section is referred to in section 7102 of this title.
