§ 7401. — Commodity promotion and evaluation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7401]
TITLE 7--AGRICULTURE
CHAPTER 101--AGRICULTURAL PROMOTION
SUBCHAPTER I--COMMODITY PROMOTION AND EVALUATION
Sec. 7401. Commodity promotion and evaluation
(a) ``Commodity promotion law'' defined
In this section, the term ``commodity promotion law'' means a
Federal law that provides for the establishment and operation of a
promotion program regarding an agricultural commodity that includes a
combination of promotion, research, industry information, or consumer
information activities, is funded by mandatory assessments on producers
or processors, and is designed to maintain or expand markets and uses
for the commodity (as determined by the Secretary). The term includes--
(1) the marketing promotion provisions under section 608c(6)(I)
of this title;
(2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
(3) title III of Public Law 91-670 (7 U.S.C. 2611 et seq.);
(4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
(5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
(6) subtitle B of title I of Public Law 98-180 (7 U.S.C. 4501 et
seq.);
(7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
(8) subtitle B of title XVI of Public Law 99-198 (7 U.S.C. 4801
et seq.);
(9) subtitle C of title XVI of Public Law 99-198 (7 U.S.C. 4901
et seq.);
(10) subtitle B of title XIX of Public Law 101-624 (7 U.S.C.
6101 et seq.);
(11) subtitle E of title XIX of Public Law 101-624 (7 U.S.C.
6301 et seq.);
(12) subtitle H of title XIX of Public Law 101-624 (7 U.S.C.
6401 et seq.);
(13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
(14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
(15) subchapter II of this chapter;
(16) subchapter III of this chapter;
(17) subchapter IV of this chapter;
(18) subchapter V of this chapter; or
(19) any other provision of law enacted after April 4, 1996,
that provides for the establishment and operation of a promotion
program described in the first sentence.
(b) Findings
Congress finds the following:
(1) It is in the national public interest and vital to the
welfare of the agricultural economy of the United States to maintain
and expand existing markets and develop new markets and uses for
agricultural commodities through industry-funded, Government-
supervised, generic commodity promotion programs established under
commodity promotion laws.
(2) These generic commodity promotion programs, funded by the
agricultural producers or processors who most directly reap the
benefits of the programs and supervised by the Secretary of
Agriculture, provide a unique opportunity for producers and
processors to inform consumers about their products.
(3) The central congressional purpose underlying each commodity
promotion law has always been to maintain and expand markets for the
agricultural commodity covered by the law, rather than to maintain
or expand the share of those markets held by any individual producer
or processor.
(4) The commodity promotion laws were neither designed nor
intended to prohibit or restrict, and the promotion programs
established and funded pursuant to these laws do not prohibit or
restrict, individual advertising or promotion of the covered
commodities by any producer, processor, or group of producers or
processors.
(5) It has never been the intent of Congress for the generic
commodity promotion programs established and funded by the commodity
promotion laws to replace the individual advertising and promotion
efforts of producers or processors.
(6) An individual producer's or processor's own advertising
initiatives are typically designed to increase the share of the
market held by that producer or processor rather than to increase or
expand the overall size of the market.
(7) In contrast, a generic commodity promotion program is
intended and designed to maintain or increase the overall demand for
the agricultural commodity covered by the program and increase the
size of the market for that commodity, often by utilizing promotion
methods and techniques that individual producers and processors
typically are unable, or have no incentive, to employ.
(8) The commodity promotion laws establish promotion programs
that operate as ``self-help'' mechanisms for producers and
processors to fund generic promotions for covered commodities which,
under the required supervision and oversight of the Secretary of
Agriculture--
(A) further specific national governmental goals, as
established by Congress; and
(B) produce nonideological and commercial communication the
purpose of which is to further the governmental policy and
objective of maintaining and expanding the markets for the
covered commodities.
(9) While some commodity promotion laws grant a producer or
processor the option of crediting individual advertising conducted
by the producer or processor for all or a portion of the producer's
or processor's marketing promotion assessments, all promotion
programs established under the commodity promotion laws, both those
programs that permit credit for individual advertising and those
programs that do not contain such provisions, are very narrowly
tailored to fulfill the congressional purposes of the commodity
promotion laws without impairing or infringing the legal or
constitutional rights of any individual producer or processor.
(10) These generic commodity promotion programs are of
particular benefit to small producers who often lack the resources
or market power to advertise on their own and who are otherwise
often unable to benefit from the economies of scale available in
promotion and advertising.
(11) Periodic independent evaluation of the effectiveness of
these generic commodity promotion programs will assist Congress and
the Secretary of Agriculture in ensuring that the objectives of the
programs are met.
(c) Independent evaluation of promotion program effectiveness
Except as otherwise provided by law, each commodity board
established under the supervision and oversight of the Secretary of
Agriculture pursuant to a commodity promotion law shall, not less often
than every 5 years, authorize and fund, from funds otherwise available
to the board, an independent evaluation of the effectiveness of the
generic commodity promotion programs and other programs conducted by the
board pursuant to a commodity promotion law. The board shall submit to
the Secretary, and make available to the public, the results of each
periodic independent evaluation conducted under this subsection.
(d) Administrative costs
The Secretary shall annually provide to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate information on administrative
expenses on programs established under commodity promotion laws.
(e) Exemption of certified organic products from assessments
(1) In general
Notwithstanding any provision of a commodity promotion law, a
person that produces and markets solely 100 percent organic
products, and that does not produce any conventional or nonorganic
products, shall be exempt from the payment of an assessment under a
commodity promotion law with respect to any agricultural commodity
that is produced on a certified organic farm (as defined in section
6502 of this title).
(2) Regulations
Not later than 1 year after May 13, 2002, the Secretary shall
promulgate regulations concerning eligibility and compliance for an
exemption under paragraph (1).
(Pub. L. 104-127, title V, Sec. 501, Apr. 4, 1996, 110 Stat. 1029; Pub.
L. 107-171, title X, Sec. 10607, May 13, 2002, 116 Stat. 514.)
References in Text
Public Law 89-502, referred to in subsec. (a)(2), is Pub. L. 89-502,
July 13, 1966, 80 Stat. 279, as amended, known as the Cotton Research
and Promotion Act, which is classified generally to chapter 53
(Sec. 2101 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2101 of this
title and Tables.
Public Law 91-670, referred to in subsec. (a)(3), is Pub. L. 91-670,
Jan. 11, 1971, 84 Stat. 2040, as amended. Title III of Pub. L. 91-670,
known as the Potato Research and Promotion Act, is classified generally
to chapter 58 (Sec. 2611 et seq.) of this title. For complete
classification of title III to the Code, see Short Title note set out
under section 2611 of this title and Tables.
Public Law 93-428, referred to in subsec. (a)(4), is Pub. L. 93-428,
Oct. 1, 1974, 88 Stat. 1171, as amended, known as the Egg Research and
Consumer Information Act, which is classified generally to chapter 60
(Sec. 2701 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 2701 of this
title and Tables.
Public Law 94-294, referred to in subsec. (a)(5), is Pub. L. 94-294,
May 28, 1976, 90 Stat. 529, as amended, known as the Beef Research and
Information Act, which is classified generally to chapter 62 (Sec. 2901
et seq.) of this title. For complete classification of this Act to the
Code, see Short Title note set out under section 2901 of this title and
Tables.
Public Law 98-180, referred to in subsec. (a)(6), is Pub. L. 98-180,
Nov. 29, 1983, 97 Stat. 1128, as amended. Title I of Pub. L. 98-180 is
known as the Dairy Production Stabilization Act of 1983. Subtitle B of
title I is classified generally to subchapter I (Sec. 4501 et seq.) of
chapter 76 of this title. For complete classification of title I to the
Code, see Short Title note set out under section 4501 of this title and
Tables.
Public Law 98-590, referred to in subsec. (a)(7), is Pub. L. 98-590,
Oct. 30, 1984, 98 Stat. 3115, as amended, known as the Honey Research,
Promotion, and Consumer Information Act, which is classified generally
to chapter 77 (Sec. 4601 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 4601 of this title and Tables.
Public Law 99-198, referred to in subsec. (a)(8), (9), is Pub. L.
99-198, Dec. 23, 1985, 99 Stat. 1354, as amended, known as the Food
Security Act of 1985. Subtitle B of title XVI of Pub. L. 99-198, known
as the Pork Promotion, Research, and Consumer Information Act of 1985,
is classified generally to chapter 79 (Sec. 4801 et seq.) of this title.
Subtitle C of title XVI of Pub. L. 99-198, known as the Watermelon
Research and Promotion Act, is classified generally to chapter 80
(Sec. 4901 et seq.) of this title. For complete classification of
subtitles B and C to the Code, see Short Title notes set out under
sections 4801 and 4901, respectively, of this title and Tables.
Public Law 101-624, referred to in subsec. (a)(10), (11), (12), is
Pub. L. 101-624, Nov. 28, 1990, 104 Stat. 3359, as amended, known as the
Food, Agriculture, Conservation, and Trade Act of 1990. Subtitle B of
title XIX of Pub. L. 101-624, known as the Mushroom Promotion, Research,
and Consumer Information Act of 1990, is classified generally to chapter
90 (Sec. 6101 et seq.) of this title. Subtitle E of title XIX of Pub. L.
101-624, known as the Soybean Promotion, Research, and Consumer
Information Act, is classified generally to chapter 92 (Sec. 6301 et
seq.) of this title. Subtitle H of title XIX of Pub. L. 101-624, known
as the Fluid Milk Promotion Act of 1990, is classified generally to
chapter 93 (Sec. 6401 et seq.) of this title. For complete
classification of subtitles B, E, and H to the Code, see Short Title
notes set out under sections 6101, 6301, and 6401, respectively, of this
title and Tables.
Public Law 103-190, referred to in subsec. (a)(13), is Pub. L. 103-
190, Dec. 14, 1993, 107 Stat. 2266, known as the Fresh Cut Flowers and
Fresh Cut Greens Promotion and Information Act of 1993, which is
classified generally to chapter 97 (Sec. 6801 et seq.) of this title.
For complete classification of this Act to the Code, see Short Title
note set out under section 6801 of this title and Tables.
Public Law 103-407, referred to in subsec. (a)(14), is Pub. L. 103-
407, Oct. 22, 1994, 108 Stat. 4210, known as the Sheep Promotion,
Research, and Information Act of 1994, which is classified generally to
chapter 99 (Sec. 7101 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 7101 of this title and Tables.
Amendments
2002--Subsec. (a)(19). Pub. L. 107-171, Sec. 10607(b), added par.
(19).
Subsec. (e). Pub. L. 107-171, Sec. 10607(a), added subsec. (e).
Short Title
Section 511 of title V of Pub. L. 104-127 provided that: ``This
subtitle [subtitle B (Secs. 511-526) of title V of Pub. L. 104-127,
enacting subchapter II of this chapter] may be cited as the `Commodity
Promotion, Research, and Information Act of 1996'.''
Section 531 of title V of Pub. L. 104-127 provided that: ``This
subtitle [subtitle C (Secs. 531-543) of title V of Pub. L. 104-127,
enacting subchapter III of this chapter] may be cited as the `Canola and
Rapeseed Research, Promotion, and Consumer Information Act'.''
Section 551 of title V of Pub. L. 104-127 provided that: ``This
subtitle [subtitle D (Secs. 551-564) of title V of Pub. L. 104-127,
enacting subchapter IV of this chapter] may be cited as the `National
Kiwifruit Research, Promotion, and Consumer Information Act'.''
Section 571 of title V of Pub. L. 104-127 provided that: ``This
subtitle [subtitle E (Secs. 571-582) of title V of Pub. L. 104-127,
enacting subchapter V of this chapter] may be cited as the `Popcorn
Promotion, Research, and Consumer Information Act'.''
Section Referred to in Other Sections
This section is referred to in section 7414 of this title.
