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U.S. Code as of:
01/03/05
Section 2106. Required terms and conditions in orders
Orders issued pursuant to this chapter shall contain the
following terms and conditions:
(a) Providing for the establishment and selection by the
Secretary, of a Cotton Board, and defining its powers and duties,
which shall include only the powers:
(1) To administer such order in accordance with its terms and
provisions;
(2) To make rules and regulations to effectuate the terms and
provisions of such order, including the designation of the person
responsible for collecting the assessment;
(3) To receive, investigate, and report to the Secretary
complaints of violations of such order; and
(4) To recommend to the Secretary amendments to such order.
(b) Providing that the Cotton Board shall be composed of (1)
representatives of cotton producers selected by the Secretary, from
nominations submitted by eligible producer organizations within a
cotton-producing State, as certified pursuant to section 2113 of
this title, or, if the Secretary determines that a substantial
number of producers are not members of or their interests are not
represented by any such eligible producer organizations, from
nominations made by producers in the manner authorized by the
Secretary, so that the representation of cotton producers on the
Board for each cotton-producing State shall reflect, to the extent
practicable, the proportion which that State's marketings of cotton
bears to the total marketings of cotton in the United States, and
(2) when imports of cotton are subject to an order, an appropriate
number of representatives, as determined by the Secretary, of
importers of cotton on which assessments are paid under this
chapter. Such importer representatives shall be appointed by the
Secretary after consultation with organizations representing
importers, as determined by the Secretary. Each cotton-producing
State shall be entitled to at least one representative on the
Cotton Board.
(c) Providing that the Cotton Board shall, subject to the
provisions of subsection (g) of this section, develop and submit to
the Secretary for his approval any advertising or sales promotion
or research and development plans or projects, and that any such
plan or project must be approved by the Secretary before becoming
effective.
(d) Providing that the Cotton Board shall, subject to the
provisions of subsection (g) of this section, submit to the
Secretary for his approval, budgets on a fiscal period basis of its
anticipated expenses and disbursements in the administration of the
order, including probable costs of advertising and promotion and
research and development projects.
(e)(1) Providing that -
(A) the producer or other person for whom the cotton is being
handled shall pay to the handler of such cotton designated by the
Cotton Board pursuant to regulations issued under the order;
(B) such handler shall collect from the producer or other
person for whom the cotton, including cotton owned by the
handler, is being handled, and shall pay to the Cotton Board; and
(C) each importer shall pay to the Cotton Board on imports of
cotton,
an assessment prescribed by the order, on the basis of bales of
cotton handled or imported. The assessment shall cover such
expenses and expenditures, including provision for a reasonable
reserve, as the Secretary finds are reasonable and likely to be
incurred by the Cotton Board under the order, during any period
specified by the Secretary.
(2) The order shall provide for reimbursing the Secretary -
(A) for expenses not to exceed $300,000 incurred by the
Secretary in connection with any referendum conducted under
section 2107 of this title; and
(B) for administrative costs incurred by the Secretary for
supervisory work up to 5 employee years after an order or
amendment to an order has been issued and made effective.
There shall also be included in the order a provision for
reimbursing any agency of the Federal Government that assists in
administering the import provisions of the order for a reasonable
amount of the expenses incurred by that agency in connection
therewith.
(3) To facilitate the collection and payment of such assessments,
the Cotton Board may designate different handlers or importers or
classes of handlers or importers to recognize differences in
marketing practices or procedures utilized in any State or area,
except that no more than one such assessment shall be made on any
bale of cotton, unless specifically authorized by provisions of
this subsection.
(4) The rate of assessment prescribed by the order shall be $1
per bale of cotton handled, supplemented by an additional per bale
amount not to exceed 1 percent of the value of cotton as determined
by the Cotton Board and the Secretary. The rate of assessment on
imports of cotton shall be determined in the same manner as the
rate of assessment per bale of cotton handled, and the value to be
placed on cotton imports for the purpose of determining the
assessment on such imports shall be established by the Secretary in
a fair and equitable manner. The Secretary shall establish
procedures to ensure that the upland cotton content of imported
products is not subject to more than one assessment under this
chapter.
(5) No authority under this chapter may be used as a basis to
advertise or solicit votes in any referendum relating to the rate
of assessment with funds collected under this chapter.
(6) The Secretary may maintain a suit against any person subject
to the order for the collection of such assessment, and the several
district courts of the United States are hereby vested with
jurisdiction to entertain such suits regardless of the amount in
controversy. The remedies provided in this section shall be in
addition to, and not exclusive of, the remedies provided for
elsewhere in this chapter or now or hereafter existing at law or in
equity.
(7) The provisions of this subsection and subsection (b) of this
section shall not apply to cottonseed and the products derived from
cottonseed whether domestically produced or imported.
(8) The provisions of this subsection relating to importers and
assessments on imports of cotton shall be effective only if
approved in a referendum as provided in section 2107(b) or 2107(c)
of this title.
(f) Providing that the Cotton Board shall maintain such books and
records and prepare and submit such reports from time to time, to
the Secretary as he may prescribe, and for appropriate accounting
by the Cotton Board with respect to the receipt and disbursement of
all funds entrusted to it.
(g) Providing that the Cotton Board, with the approval of the
Secretary, shall enter into contracts or agreements for the
development and carrying out of the activities authorized under the
order pursuant to sections 2105(a) and (b) of this title and for
the payment of the costs thereof with funds collected pursuant to
the order, with an organization or association whose governing body
consists of cotton producers selected by the cotton producer
organizations certified by the Secretary under section 2113 of this
title, in such manner that the producers of each cotton-producing
State will, to the extent practicable, have representation on the
governing body of such organization in the proportion that the
cotton marketed by the producers of such State bears to the total
cotton marketed by the producers of all cotton-producing States,
subject to adjustments to reflect lack of participation in the
program by reason of refunds under section 2110 of this title. Any
such contract or agreement shall provide that such contracting
organization or association shall develop and submit annually to
the Cotton Board, for the purpose of review and making
recommendations to the Secretary, a program of research,
advertising, and sales promotion projects, together with a budget,
or budgets, which shall show the estimated cost to be incurred for
such projects, and that any such projects shall become effective
upon approval by the Secretary. Any such contract or agreement
shall also provide that the contracting organization shall keep
accurate records of all its transactions and make an annual report
to the Cotton Board of activities carried out and an accounting for
funds received and expended, and such other reports as the
Secretary may require.
(h) Providing that no funds collected by the Cotton Board under
the order shall in any manner be used for the purpose of
influencing governmental policy or action, except as provided by
subsection (a)(4) of this section.
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