Laws: Cases and Codes : U.S. Code : Title 7 : Section 4809


   
U.S. Code as of: 01/03/05
Section 4809. Assessments

    (a) Collection and remission to Board; persons required to pay
      (1) The order shall provide that, not later than 30 days after
    the effective date of the order under section 4805(c) of this title
    an assessment shall be paid, in the manner prescribed in the order.
    Upon the appointment of the Board, the assessments held in escrow
    shall be distributed to the Board. Except as provided in paragraph
    (3), assessments shall be payable by - 
        (A) each producer for each porcine animal described in
      subparagraph (A) or (C) of section 4802(8) of this title produced
      in the United States that is sold or slaughtered for sale;
        (B) each producer for each porcine animal described in
      subsection (!1) 4802(8)(B) of this title that is sold; and

        (C) each importer for each porcine animal, pork, or pork
      product that is imported into the United States.

      (2) Such assessment shall be collected and remitted to the Board
    once it is appointed pursuant to section 4808 of this title, but,
    until that time, to the Secretary, who shall promptly proceed to
    distribute the funds received by him in accordance with the
    provisions of subsection (c) of this section, except that the
    Secretary shall retain the funds to be received by the Board until
    such time as the Board is appointed pursuant to section 4808 of
    this title, by - 
        (A) in the case of subparagraph (A) of paragraph (1), the
      purchaser of the porcine animal referred to in such subparagraph;
        (B) in the case of subparagraph (B) of paragraph (1), the
      producer of the porcine animal referred to in such subparagraph;
      and
        (C) in the case of subparagraph (C) of paragraph (1), the
      importer referred to in such subparagraph.

      (3) A person is not required to pay an assessment for a porcine
    animal, pork, or pork product under paragraph (1) if such person
    proves to the Board that an assessment was paid previously under
    such paragraph by a person for such porcine animal (of the same
    category described in subparagraph (A), (B), or (C) of section
    4802(8) of this title), pork, or pork product.
    (b) Rate of assessment; increase; waiver of collection of
      assessment
      (1) Except as provided in paragraph (2), the rate of assessment
    prescribed by the initial order shall be the lesser of - 
        (A) 0.25 percent of the market value of the porcine animal,
      pork, or pork product sold or imported; or
        (B) an amount established by the Secretary based on a
      recommendation of the Delegate Body.

      (2) Except as provided in paragraph (3), the rate of assessment
    in the initial order may be increased by not more than 0.1 percent
    per year on recommendation of the Delegate Body.
      (3) The rate of assessment may not exceed 0.50 percent of such
    market value unless - 
        (A) after the initial referendum required under section 4811(a)
      of this title, the Delegate Body recommends an increase in such
      rate above 0.50 percent; and
        (B) such increase is approved in a referendum conducted under
      section 4811(b) of this title.

      (4)(A) Pork or pork products imported into the United States
    shall be assessed based on the equivalent value of the live porcine
    animal from which such pork or pork products were produced, as
    determined by the Secretary.
      (B) The Secretary may waive the collection of assessments on a
    type of such imported pork or pork products if the Secretary
    determines that such collection is not practicable.
    (c) Distribution and use
      Funds collected by the Board from assessments collected under
    this section shall be distributed and used in the following manner:
        (1)(A) Each State association, shall receive an amount of funds
      equal to the product obtained by multiplying - 
          (i) the aggregate amount of assessments attributable to
        porcine animals produced in such State by persons described in
        subsection (a)(1)(A) and (B) of this section minus that State's
        share of refunds determined pursuant to paragraph (4) by such
        persons pursuant to section 4813 of this title; and
          (ii) a percentage applicable to such State association
        determined by the Delegate Body, but in no event less than
        sixteen and one-half percent, or

        (B) in the case of a State association that was conducting a
      pork promotion program in the period from July 1, 1984, to June
      30, 1985, if greater than (A) an amount of funds equal to the
      amount of funds that would have been collected in such State
      pursuant to the pork promotion program in existence in such State
      from July 1, 1984, to June 30, 1985, had the porcine animals,
      subject to assessment and to which no refund was received in such
      State in each year following December 23, 1985, been produced
      from July 1, 1984, to June 30, 1985, and been subject to the
      rates of assessments then in effect and the rate of return then
      in effect from each State to the Council described in paragraph
      (2)(A), and other national entities involved in pork promotion,
      research and consumer information.
        (C) A State association shall use such funds and any proceeds
      from the investment of such funds for financing - 
          (i) promotion, research, and consumer information plans and
        projects, and
          (ii) administrative expenses incurred in connection with such
        plans and projects.

        (2)(A) The National Pork Producers Council, a nonprofit
      corporation of the type described in section 501(c)(3) of title
      26 and incorporated in the State of Iowa, shall receive an amount
      of funds equal to - 
          (i) 37 1/2  percent of the aggregate amount of assessments
        collected under this section throughout the United States from
        the date assessment commences pursuant to subsection (a)(1) of
        this section until the first day of the month following the
        month in which the Board is appointed pursuant to section 4808
        of this title.(!2)

          (ii) 35 percent thereafter until the referendum is conducted
        pursuant to section 4811 of this title,
          (iii) 25 percent until twelve months after the referendum is
        conducted, and
          (iv) no funds thereafter except in so far as it obtains such
        funds from the Board pursuant to sections (!3) 4808 or 4809 of
        this title, each of which amounts determined under (i), (ii),
        and (iii) shall be less the Council's share of refunds
        determined pursuant to paragraph (4).


        (B) The Council shall use such funds and proceeds from the
      investment of such funds for financing - 
          (i) promotion, research, and consumer information plans and
        projects, and
          (ii) administrative expenses of the Council.

        (3)(A) The Board shall receive the amount of funds that remain
      after the distribution required under paragraphs (1) and (2).
        (B) The Board shall use such funds and any proceeds from the
      investment of such funds pursuant to subsection (g) of this
      section for - 
          (i) financing promotion, research, and consumer information
        plans and projects in accordance with this chapter; (!4)

          (ii) such expenses for the administration, maintenance, and
        functioning of the Board as may be authorized by the Secretary;
          (iii) accumulation of a reasonable reserve to permit an
        effective promotion, research, and consumer information program
        to continue in years when the amount of assessments may be
        reduced; and
          (iv) administrative costs incurred by the Secretary to carry
        out this chapter,(!4) including any expenses incurred for the
        conduct of a referendum under this chapter.(!4)

        (4)(A) Each State's share of refunds shall be determined by
      multiplying the aggregate amount of refunds received by producers
      in such State by the percentage applicable to such State pursuant
      to paragraph (1)(A)(ii).
        (B) The National Pork Producers Council's share of refunds
      shall be determined by multiplying its applicable percent of the
      aggregate amount of assessments by the product of - 
          (i) subtracting from the aggregate amount of refunds received
        by all producers the aggregate amount of State share or refunds
        in every State determined pursuant to subparagraph (A), and
          (ii) adding to that sum the aggregate amount of refunds
        received by importers.
    (d) Prohibited promotions
      No promotion funded with assessments collected under this chapter
    may make - 
        (1) a false or misleading claim on behalf of pork or a pork
      product; or
        (2) a false or misleading statement with respect to an
      attribute or use of a competing product.
    (e) Influencing legislation prohibited
      No funds collected through assessments authorized by this section
    may, in any manner, be used for the purpose of influencing
    legislation, as defined in section 4911(d) and (e)(2) of title 26.
    (f) Maintenance of books and records; audits
      The Board shall - 
        (1) maintain such books and records, and prepare and submit to
      the Secretary such reports from time to time, as may be required
      by the Secretary for appropriate accounting of the receipt and
      disbursement of funds entrusted to the Board or a State
      association, as the case may be; and
        (2) cause a complete audit report to be submitted to the
      Secretary at the end of each fiscal year.
    (g) Investment by Board of funds collected
      The Board, with the approval of the Secretary, may invest funds
    collected through assessments authorized under this section,
    pending disbursement for a plan or project, only in - 
        (1) an obligation of the United States, or of a State or
      political subdivision thereof;
        (2) an interest-bearing account or certificate of deposit of a
      bank that is a member of the Federal Reserve System; or
        (3) an obligation fully guaranteed as to principal and interest
      by the United States.



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