§ 7444. — 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: 7USC7444]
TITLE 7--AGRICULTURE
CHAPTER 101--AGRICULTURAL PROMOTION
SUBCHAPTER III--CANOLA AND RAPESEED
Sec. 7444. Required terms in orders
(a) In general
An order issued under this subchapter shall contain the terms and
conditions specified in this section.
(b) Establishment and membership of National Canola and Rapeseed Board
(1) In general
The order shall provide for the establishment of, and
appointment of members to, a National Canola and Rapeseed Board to
administer the order.
(2) Service to entire industry
The Board shall carry out programs and projects that will
provide maximum benefit to the canola and rapeseed industry in all
parts of the United States and only promote canola, rapeseed, or
canola or rapeseed products.
(3) Board membership
The Board shall consist of 15 members, including--
(A) 11 members who are producers, including--
(i) 1 member from each of the 6 geographic regions
comprised of States where canola or rapeseed is produced, as
determined by the Secretary; and
(ii) 5 members from the geographic regions referred to
in clause (i), allocated according to the production in each
region; and
(B) 4 members who are industry members, including at least--
(i) 1 member who represents manufacturers of canola or
rapeseed end products; and
(ii) 1 member who represents persons who commercially
buy or sell canola or rapeseed.
(4) Limitation on State residence
There shall be no more than 4 producer members of the Board from
any 1 State.
(5) Modifying Board membership
In accordance with regulations approved by the Secretary, at
least once each 3 years and not more than once each 2 years, the
Board shall review the geographic distribution of canola and
rapeseed production throughout the United States and, if warranted,
recommend to the Secretary that the Secretary--
(A) reapportion regions in order to reflect the geographic
distribution of canola and rapeseed production; and
(B) reapportion the seats on the Board to reflect the
production in each region.
(6) Certification of organizations
(A) In general
For the purposes of section 7445 of this title, the
eligibility of any State organization to represent producers
shall be certified by the Secretary.
(B) Criteria
The Secretary shall certify any State organization that the
Secretary determines has a history of stability and permanency
and meets at least 1 of the following criteria:
(i) Majority representation
The total paid membership of the organization--
(I) is comprised of at least a majority of canola or
rapeseed producers; or
(II) represents at least a majority of the canola or
rapeseed producers in the State.
(ii) Substantial number of producers represented
The organization represents a substantial number of
producers that produce a substantial quantity of canola or
rapeseed in the State.
(iii) Purpose
The organization is a general farm or agricultural
organization that has as a stated objective the promotion
and development of the United States canola or rapeseed
industry and the economic welfare of United States canola or
rapeseed producers.
(C) Report
The Secretary shall make a certification under this
paragraph on the basis of a factual report submitted by the
State organization.
(7) Terms of office
(A) In general
A member of the Board shall serve for a term of 3 years,
except that the members appointed to the initial Board shall
serve, proportionately, for terms of 1, 2, and 3 years, as
determined by the Secretary.
(B) Limitation on terms
No individual may serve more than 2 consecutive 3-year terms
as a member.
(C) Termination of terms
Notwithstanding subparagraph (B), each member shall continue
to serve until a successor is appointed by the Secretary.
(8) Compensation
A member of the Board shall serve without compensation, but
shall be reimbursed for necessary and reasonable expenses incurred
in the performance of duties for and approved by the Board.
(c) Powers and duties of Board
The order shall define the powers and duties of the Board, which
shall include the power and duty--
(1) to administer the order in accordance with the terms and
conditions of the order;
(2) to issue regulations to effectuate the terms and conditions
of the order;
(3) to meet, organize, and select from among members of the
Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) to establish working committees of persons other than Board
members;
(5) to employ such persons, other than Board members, as the
Board considers necessary, and to determine the compensation and
define the duties of the persons;
(6) to prepare and submit for the approval of the Secretary,
when appropriate or necessary, a recommended rate of assessment
under section 7445 of this title, and a fiscal period budget of the
anticipated expenses in the administration of the order, including
the probable costs of all programs and projects;
(7) to develop programs and projects, subject to subsection (d)
of this section;
(8) to enter into contracts or agreements, subject to subsection
(e) of this section, to develop and carry out programs or projects
of research, promotion, industry information, and consumer
information;
(9) to carry out research, promotion, industry information, and
consumer information projects, and to pay the costs of the projects
with assessments collected under section 7445 of this title;
(10) to keep minutes, books, and records that reflect the
actions and transactions of the Board, and promptly report minutes
of each Board meeting to the Secretary;
(11) to appoint and convene, from time to time, working
committees comprised of producers, industry members, and the public
to assist in the development of research, promotion, industry
information, and consumer information programs for canola, rapeseed,
and canola and rapeseed products;
(12) to invest, pending disbursement under a program or project,
funds collected through assessments authorized under section 7445 of
this title, or funds earned from investments, only in--
(A) obligations of the United States or an agency of the
United States;
(B) general obligations of a State or a political
subdivision of a State;
(C) an 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;
(13) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(14) to furnish the Secretary with such information as the
Secretary may request;
(15) to recommend to the Secretary amendments to the order;
(16) to develop and recommend to the Secretary for approval such
regulations as may be necessary for the development and execution of
programs or projects, or as may otherwise be necessary, to carry out
the order; and
(17) to provide the Secretary with advance notice of meetings.
(d) Programs and budgets
(1) Submission to Secretary
The order shall provide that the Board shall submit to the
Secretary for approval any program or project of research,
promotion, consumer information, or industry information. No program
or project shall be implemented prior to approval by the Secretary.
(2) Budgets
The order shall require the Board, prior to the beginning of
each fiscal year, or as may be necessary after the beginning of a
fiscal year, to submit to the Secretary for approval budgets of
anticipated expenses and disbursements in the implementation of the
order, including projected costs of research, promotion, consumer
information, and industry information programs and projects.
(3) Incurring expenses
The Board may incur such expenses for programs or projects of
research, promotion, consumer information, or industry information,
and other expenses for the administration, maintenance, and
functioning of the Board as may be authorized by the Secretary,
including any implementation, administrative, and referendum costs
incurred by the Department.
(4) Paying expenses
The funds to cover the expenses referred to in paragraph (3)
shall be paid by the Board from assessments collected under section
7445 of this title or funds borrowed pursuant to paragraph (5).
(5) Authority to borrow
To meet the expenses referred to in paragraph (3), the Board
shall have the authority to borrow funds, as approved by the
Secretary, for capital outlays and startup costs.
(e) Contracts and agreements
(1) In general
To ensure efficient use of funds, the order shall provide that
the Board may enter into a contract or agreement for the
implementation and carrying out of a program or project of canola,
rapeseed, or canola or rapeseed products research, promotion,
consumer information, or industry information, including a contract
with a producer organization, and for the payment of the costs with
funds received by the Board under the order.
(2) Requirements
A contract or agreement under paragraph (1) shall provide that--
(A) the contracting party shall develop and submit to the
Board a program or project together with a budget that shall
show the estimated costs to be incurred for the program or
project;
(B) the program or project shall become effective on the
approval of the Secretary; and
(C) the contracting party shall keep accurate records of all
transactions, account for funds received and expended, make
periodic reports to the Board of activities conducted, and make
such other reports as the Board or the Secretary may require.
(3) Producer organizations
The order shall provide that the Board may contract with a
producer organization for any services required in addition to the
services described in paragraph (1). The contract shall include
provisions comparable to the provisions required by paragraph (2).
(f) Books and records of Board
(1) In general
The order shall require the Board to--
(A) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as the
Secretary may prescribe;
(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) Audits
The Board shall cause the books and records of the Board to be
audited by an independent auditor at the end of each fiscal year,
and a report of the audit to be submitted to the Secretary.
(g) Prohibition
(1) In general
Subject to paragraph (2), the Board shall not engage in any
action to, nor shall any funds received by the Board under this
subchapter be used to--
(A) influence legislation or governmental action;
(B) engage in an action that would be a conflict of
interest;
(C) engage in advertising that is false or misleading; or
(D) engage in promotion that would disparage other
commodities.
(2) Action permitted
Paragraph (1) does not preclude--
(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 canola or rapeseed
products directly to a foreign government or political
subdivision of a foreign government.
(h) Books and records
(1) In general
The order shall require that each producer, first purchaser, or
industry member shall--
(A) maintain and submit to the Board any reports considered
necessary by the Secretary to ensure compliance with this
subchapter; and
(B) make available during normal business hours, for
inspection by employees of the Board or Secretary, such books
and records as are necessary to carry out this subchapter,
including such records as are necessary to verify any required
reports.
(2) Confidentiality
(A) In general
Except as otherwise provided in this subchapter, all
information obtained from books, records, or reports required to
be maintained under paragraph (1) shall be kept confidential,
and shall not be disclosed to the public by any person.
(B) Disclosure
Information referred to in subparagraph (A) may be disclosed
to the public if--
(i) the Secretary considers the information relevant;
(ii) the information is revealed in a suit 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 subchapter.
(C) Misconduct
A knowing disclosure of confidential information in
violation of subparagraph (A) by an officer or employee of the
Board or Department, except as required by other law or allowed
under subparagraph (B) or (D), shall be considered a violation
of this subchapter.
(D) General statements
Nothing in this paragraph prohibits--
(i) the issuance of general statements based on the
reports of a number of persons subject to an order or
statistical data collected from the reports, if the
statements do not identify the information furnished by any
person; or
(ii) the publication, by direction of the Secretary, of
the name of a person violating the order, together with a
statement of the particular provisions of the order violated
by the person.
(3) Availability of information for law enforcement
Information obtained under this subchapter may be made available
to another agency of the Federal Government for a civil or criminal
law enforcement activity if the activity is authorized by law and if
the head of the agency has made a written request to the Secretary
specifying the particular information desired and the law
enforcement activity for which the information is sought.
(4) Penalty
Any person knowingly violating this subsection, 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 an officer or
employee of the Board or the Department, shall be removed from
office or terminated from employment, as applicable.
(5) Withholding of information
Nothing in this subchapter authorizes the withholding of
information from Congress.
(i) Use of assessments
The order shall provide that the assessments collected under section
7445 of this title shall be used for payment of the expenses in
implementing and administering this subchapter, with provision for a
reasonable reserve, and to cover administrative costs incurred by the
Secretary in implementing and administering this subchapter.
(j) Other terms and conditions
The order shall contain such other terms and conditions, not
inconsistent with this subchapter, as are determined necessary by the
Secretary to effectuate this subchapter.
(Pub. L. 104-127, title V, Sec. 535, Apr. 4, 1996, 110 Stat. 1051.)
Section Referred to in Other Sections
This section is referred to in sections 7442, 7445 of this title.
