Laws: Cases and Codes : U.S. Code : Title 7 : Section 2904


   
U.S. Code as of: 01/03/05
Section 2904. Required terms in orders

      An order issued under section 2903(b) of this title shall contain
    the following terms and conditions:
        (1) The order shall provide for the establishment and selection
      of a Cattlemen's Beef Promotion and Research Board. Members of
      the Board shall be cattle producers and importers appointed by
      the Secretary from (A) nominations submitted by eligible State
      organizations certified under section 2905 of this title (or, if
      the Secretary determines that there is no eligible State
      organization in a State, the Secretary may provide for
      nominations from such State to be made in a different manner),
      and (B) nominations submitted by importers under such procedures
      as the Secretary determines appropriate. In determining
      geographic representation for cattle producers on the Board,
      whole States shall be considered as a unit. Each State that has a
      total cattle inventory greater than five hundred thousand head
      shall be entitled to at least one representative on the Board. A
      State that has a total inventory of fewer than 500,000 cattle
      shall be grouped, as far as practicable, with other States each
      of which has a combined total inventory of not less than 500,000
      cattle, into geographically contiguous units in a manner
      prescribed in the order. A unit may be represented on the Board
      by more than one member. For each additional million head of
      cattle within a unit, such unit shall be entitled to an
      additional member on the Board. The Board may recommend a change
      in the level of inventory per unit necessary for representation
      on the Board and, on such recommendation, the Secretary may
      change the level necessary for representation on the Board. The
      number of members on the Board that represent importers shall be
      determined by the Secretary on a proportional basis, by
      converting the volume of imported beef and beef products into
      live animal equivalencies.
        (2) The order shall define the powers and duties of the Board,
      which shall be exercised at an annual meeting, and shall include
      only the following powers:
          (A) To administer the order in accordance with its terms and
        provisions.
          (B) To make rules and regulations to effectuate the terms and
        provisions of the order.
          (C) To elect members of the Board to serve on the Committee.
          (D) To approve or disapprove budgets submitted by the
        Committee.
          (E) To receive, investigate, and report to the Secretary
        complaints of violations of the order.
          (F) To recommend to the Secretary amendments to the order.

      In addition, the order shall determine the circumstances under
      which special meetings of the Board may be held.
        (3) The order shall provide that the term of appointment to the
      Board shall be three years with no member serving more than two
      consecutive terms, except that initial appointments shall be
      proportionately for one-year, two-year, and three-year terms; and
      that Board members shall serve without compensation, but shall be
      reimbursed for their reasonable expenses incurred in performing
      their duties as members of the Board.
        (4)(A) The order shall provide that the Board shall elect from
      its membership ten members to serve on the Beef Promotion
      Operating Committee, which shall be composed of ten members of
      the Board and ten producers elected by a federation that includes
      as members the qualified State beef councils. The producers
      elected by the federation shall be certified by the Secretary as
      producers that are directors of a qualified State beef council.
      The Secretary also shall certify that such directors are duly
      elected by the federation as representatives to the Committee.
        (B) The Committee shall develop plans or projects of promotion
      and advertising, research, consumer information, and industry
      information, which shall be paid for with assessments collected
      by the Board. In developing plans or projects, the Committee
      shall - 
          (i) to the extent practicable, take into account similarities
        and differences between certain beef, beef products, and veal;
        and
          (ii) ensure that segments of the beef industry that enjoy a
        unique consumer identity receive equitable and fair treatment
        under this chapter.

        (C) The Committee shall be responsible for developing and
      submitting to the Board, for its approval, budgets on a fiscal
      year basis of its anticipated expenses and disbursements,
      including probable costs of advertising and promotion, research,
      consumer information, and industry information projects. The
      Board shall approve or disapprove such budgets and, if approved,
      shall submit such budget to the Secretary for the Secretary's
      approval.
        (D) The total costs of collection of assessments and
      administrative staff incurred by the Board during any fiscal year
      shall not exceed 5 per centum of the projected total assessments
      to be collected by the Board for such fiscal year. The Board
      shall use, to the extent possible, the resources, staffs, and
      facilities of existing organizations.
        (5) The order shall provide that terms of appointment to the
      Committee shall be one year, and that no person may serve on the
      Committee for more than six consecutive terms. Committee members
      shall serve without compensation, but shall be reimbursed for
      their reasonable expenses incurred in performing their duties as
      members of the Committee. The Committee may utilize the
      resources, staffs, and facilities of the Board and industry
      organizations. An employee of an industry organization may not
      receive compensation for work performed for the Committee, but
      shall be reimbursed from assessments collected by the Board for
      reasonable expenses incurred in performing such work.
        (6) The order shall provide that, to ensure coordination and
      efficient use of funds, the Committee shall enter into contracts
      or agreements for implementing and carrying out the activities
      authorized by this chapter with established national nonprofit
      industry-governed organizations, including the federation
      referred to in paragraph (4), to implement programs of promotion,
      research, consumer information, and industry information. Any
      such contract or agreement shall provide that - 
          (A) the person entering the contract or agreement shall
        develop and submit to the Committee a plan or project together
        with a budget or budgets that shows estimated costs to be
        incurred for the plan or project;
          (B) the plan or project shall become effective on the
        approval of the Secretary; and
          (C) the person entering the contract or agreement shall keep
        accurate records of all of its transactions, account for funds
        received and expended, and make periodic reports to the
        Committee of activities conducted, and such other reports as
        the Secretary, the Board, or the Committee may require.

        (7) The order shall require the Board and the Committee 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 them.

        (8)(A) The order shall provide that each person making payment
      to a producer for cattle purchased from the producer shall, in
      the manner prescribed by the order, collect an assessment and
      remit the assessment to the Board. The Board shall use qualified
      State beef councils to collect such assessments.
        (B) If an appropriate qualified State beef council does not
      exist to collect an assessment in accordance with paragraph (1),
      such assessment shall be collected by the Board.
        (C) The order also shall provide that each importer of cattle,
      beef, or beef products shall pay an assessment, in the manner
      prescribed by the order, to the Board. The assessments shall be
      used for payment of the costs of plans and projects, as provided
      for in paragraph (4), and expenses in administering the order,
      including more administrative costs incurred by the Secretary
      after the order has been promulgated under this chapter, and to
      establish a reasonable reserve. The rate of assessment prescribed
      by the order shall be one dollar per head of cattle, or the
      equivalent thereof in the case of imported beef and beef
      products. A producer who can establish that the producer is
      participating in a program of an established qualified State beef
      council shall receive credit, in determining the assessment due
      from such producer, for contributions to such program of up to 50
      cents per head of cattle or the equivalent thereof. There shall
      be only one qualified State beef council in each State. Any
      person marketing from (!1) beef from cattle of the person's own
      production shall remit the assessment to the Board in the manner
      prescribed by the order.

        (9) The order shall provide that the Board, with the approval
      of the Secretary, may invest, pending disbursement, funds
      collected through assessments only in obligations of the United
      States or any agency thereof, in general obligations of any State
      or any political subdivision thereof, in any interest-bearing
      account or certificate of deposit of a bank that is a member of
      the Federal Reserve System, or in obligations fully guaranteed as
      to principal and interest by the United States.
        (10) The order shall prohibit any funds collected by the Board
      under the order from being used in any manner for the purpose of
      influencing governmental action or policy, with the exception of
      recommending amendments to the order.
        (11) The order shall require that each person making payment to
      a producer, any person marketing beef from cattle of the person's
      own production directly to consumers, and any importer of cattle,
      beef, or beef products 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. Such information shall be made available
      to the Secretary as is appropriate to the administration or
      enforcement of this chapter, the order, or any regulation issued
      under this chapter. In addition, the Secretary shall authorize
      the use of information regarding persons paying producers that is
      accumulated under a law or regulation other than this chapter or
      regulations under this chapter.
        All information so obtained shall be kept confidential by all
      officers and employees of the Department, and only such
      information so obtained as the Secretary deems relevant may be
      disclosed by them and then only in a suit or administrative
      hearing brought at the request of the Secretary, or to which the
      Secretary or any officer of the United States is a party, and
      involving the order. Nothing in this paragraph may be deemed to
      prohibit - 
          (A) the issuance of general statements, based on the reports,
        of the number of persons subject to the order or statistical
        data collected therefrom, which statements do not identify the
        information furnished by any person; or
          (B) the publication, by direction of the Secretary, of the
        name of any person violating the order, together with a
        statement of the particular provisions of the order violated by
        the person.

        No information obtained under the authority of this chapter may
      be made available to any agency or officer of the United States
      for any purpose other than the implementation of this chapter and
      any investigatory or enforcement act necessary for the
      implementation of this chapter. Any person violating the
      provisions of this paragraph 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 an officer or employee of the Board or the
      Department, shall be removed from office.
        (12) The order shall contain terms and conditions, not
      inconsistent with the provisions of this chapter, as necessary to
      effectuate the provisions of the order.



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